UNIDO’s Procurement Activities

Aymen Ahmed
Procurement Services Division

Vienna- Austria1

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The Mandate of UNIDO:
Inclusive and Sustainable Industrial Development (ISID) –Sustainable Development Goals (SDGs)
Advancing Economic Competitiveness• Advancing economic and industrial growth

Creating Shared Prosperity• Advancing poverty eradication and inclusivenessSafeguarding the Environment• Advancing environmentally sustainable growthManagement Priority for 2016
• Promoting Green Industry and a Circular Economy

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UNIDO’s Environment Portfolio in 2016

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UNIDO’s Department of Environment:
Circular EconomyUNIDO promotes a model of industrial
development that is inclusive and sustainable

Cleaner
production

The Department of Environment helps transform
industries into contributors to theSeparate
circular economy by:waste,• Reducing or eliminating thereuse
resources
production of pollution or wastewith lessresource use

Greenproducts –no hazardous
substances,long life, easy
to recycle• Re-using resources or ensuring

their safe re-absorption by the environment
A circular economy is restorative and regenerativeby design

Collect at endof-life

Extendinglifetime throughbetterservice

8UNIDO’s Montreal Protocol Programme:
Partner in Promoting Climate Change Mitigation
UNIDO is an implementing agency of the Climate and Clean Air Coalition (CCAC). UNIDO hasalready submitted proposals focusing on the elimination of HFCs for the consideration of theworking group. One proposal (retail sector) has been approved:Phase-out ODS
Avoid high-GWP alternatives; andProvide energy savings in the range 13-18%

Projects have also been approved by the Global Environment Facility (GEF) to promote energy
efficiency in the Room Air Conditioning (RAC) manufacturing and servicing sectors (fishery/foodprocessing), transitioning away from HCFCs and leapfrogging HFCs.
UNIDO is constantly investigating best alternatives in the refrigeration sector, while partneringwith the private sector  natural refrigerants.
Potential partnership with bilateral partners.

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UNIDO’s Montreal Protocol Programme:Countries Assisted

10Global Environment Facility:
UNIDO as Implementing Agency
UNIDO provides assistance in the following areas:Resource-efficient and low-carbon industrial production;
Clean energy access for productive use;
Cleaner production, chemical management and promoting of green industries; andCapacity-building for the implementation of multilateral environmental agreements

Focus areas:Climate Change Mitigation (IEE and RE)
Climate Change Adaptation (Resilient Value Chains and Industries)
Persistent Organic Pollutants (POPs)
Sound Chemicals Management (Mercury, e-waste)
Ozone Depleting Substances (ODS)
International Waters (IW)11

UNIDO At A Glance

UNIDO as GEF Agency (cont‘d)
UNIDO-GEF Portfolio:
GEF Focal Area

Approved GEF ProjectGrants$US(project and preparatory)

Co-financing$US

Chemicals (POPs, ODS, Hg)

223 M

697 M

Climate Change Mitigation(RE/EE)

209 M

1,388 M

Climate Change Adaptation

7M

22 M

International Waters

5M

220 M

Multi-focal Area

42 M

120 M

Grand Total

466 M

2,447 M

Figures provided as of February 2015; * Includes GEF-3, GEF-4, GEF-5 and GEF-6

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Climate and Technology Centre & Network (CTCN):Consortium

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CTCN Mandate, Services and Structure
MandateCTCN mission is “Stimulating technology cooperation and enhance thedevelopment and transfer of technologies to developing country Parties attheir request”

Services
1.

Technical assistance to developing countries

2.

Knowledge sharing and training

3.

Fostering collaboration on climate technologies (including linking climatetechnology projects with financing opportunity”)

Structure
CTCN hosted by UNEP in collaboration with UNIDO and supported by 11
partner institutions with expertise in climate technologies

14Climate Technology Centre & Network (CTCN):
National Designated Entities (NDEs)

111 NDEs have been selected by their countries (as of 19 March 2015)15

Private Financing Advisory Network (PFAN)
Multilateral public-private partnership that nurtures low carbon, climate resilient projects bybridging the gap between investors and clean energy entrepreneurs and project developers
Advice and Guidance• financial structuring• sourcing of equity and debt
• business growth• strategy, preparation and presentation of business plans
Matching Projects with Investors• selected projects introduced to investors financing forums• direct introduction to network investors and other potential investment sources
63 Projects Closed• USD 680 million raised• 2.3 m tonnes CO2e reduction pa• High level of financial leverage for donors: 1 / 80
• 297 projects in the pipeline• representing USD 6.9 billion of investments

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Most Frequently Procured Goods• Ozone depleting substance replacement and phase-••••••••••••••

out equipment (in the refrigeration, solvents, aerosols
and foam manufacturing sector);
Equipment for the replacement of methyl bromide
measuring, checking & testing instruments;
Laboratory, calibration and testing equipment;
Agricultural produce and materials;
Equipment for textile apparel & leather production;
Wood and timber products;
Vocational toolkits;
Chemicals;
Hydrogen production and storage;
Agricultural & food processing machinery andequipment;
IT HW & SW equipment and supplies;
Building and construction materials and supplies;
Renewable and rural energy systems andinfrastructure
Motor vehicles, parts, accessories;
Leather and leather products, footwear;• Office furniture and accessories;• Engines, turbines and similar machinery and•
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equipment (hydroelectric, others)
Security and safety equipment;
Wind mills and motors;
Solar energy systems and related equipment;
Pumps; compressors, valves, etc.;
Air conditioning equipment, controls and machinery;
Water treatment systems, equipment and machinery;
Ventilation systems and equipment;
Mining, quarrying and construction machinery andequipment;
Recycling and waste management systems,equipment and machinery;
Design, publication and training materials;
Telecommunications equipment;
Fishing testing equipment;
Metrology equipment;

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Most Frequently Procured Services• Phase-out ozone depletion in refrigeration, foam,••
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• Financial advisory services and insurance;

aerosols and solvents sector (ODS, POPS)•Phase-out of methyl bromide•
Trade promotion and technology information exchange •Standardization and laboratory accreditation•Energy Policy and management (electricity andalternative systems)
Advisory services for environmental protection
Water management services
Training
Engineering design, research and development;
Agro related services (textile, leather, fisheries, food…)
Revolving credit support facilities;
Office leases, maintenance and repair services;
Construction works and site management;
Technical assistance and advisory services;
Air conditioning work and maintenance;
Environmental engineering and science;
Thematic mapping and evaluation services;
Trade and business related services;
Maintenance and repair services;
Design, publication and advertising services;
Telecommunication services

Freight, transportation, storage and logistics services;
Audit and accounting services;
Laboratory testing and calibration services;
Translation services;22

Most Frequently Procured Services• Electrical /mechanical installation works;• Consulting/advisory services on environmentally sound•
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technology and practices;
Technology assessments and information exchanges;
Repair and maintenance services;
Consulting/advisory services on agriculture produce;
Consulting/advisory services related to renewable energy andenvironmental systems and infrastructures;Technology conversion, retrofit and rehabilitation projects;
Energy policy and management;
Environmental management related advice and consultingservices;
Consulting/advisory services related to environmental
protection;
Waste disposal related advice and services;
Cleaner technology promotion services;
Water pollution related services;
Industrial surveys and consulting services;Management advice and consultancy services;
Training and development services;
Consulting/advisory services related to nanotechnology;
Security services;
Catering services;••••

Conference services;
Business seminars and conferences;
Professional & vocational training and workshops
IT SW and internet related services.

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Top Ten Goods/Services Procured by UNIDO in 2013-2015

Top Ten Goods/Services Bought by UNIDO From 2013-2015(EUR)
35,000,000.00
30,000,000.00
25,000,000.00
20,000,000.00

15,000,000.00
10,000,000.00
5,000,000.00
0.00

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eProcurement Workflow(Shopping Cart)
Records of previous procurements in SRM
should allow easier planning of costs and listof items to create Shopping Cart (“what tobuy”)

Contract/Purchase OrderManagement

Fast Track (Procurement <€5,000) and LTA Call OffsSystem supported creation ofContract/PO documents;
System generated reports ondeliverables, reports, outstandingpayments;

For procurements> € 5,000
Bidding (RFx Event)

Forprocurements< € 200,000

Fast Track (up to € 5,000): SAP SRM
automatically generates Purchase
Order (PO) from the Shopping Cart;

Created from details of Shopping Cart;

Bidding process (“how to buy”).

Data from RFx Event will be used topopulate PO in PDF flexi-field format.
Some of the fields will be editable
while the majority will be standard.

Evaluation (RFx Event)To the extent possible, to be carried out within
the RFx Event;Clarification notes, responses, etc interactivewith all potential bidders;
Based on system input, reports on comparisonand evaluation (vendor comparisons) are
generated out of system and can be exported
to excel.

Purchase Order Approval

Forprocurements> € 200,000

Planned freight forwarding
services LTA to reduce shipment
costs and allow for monitoring andtracking of shipments;
TC cargo insurance LTA to insure
all equipment transportationworld-wide to final project site;
System embedded goods/service
receipt, invoice receipt andpayment;
Electronic banking services LTA(covering approximately 60
developing countries);

Award
Procurement case submitted to
UNIDO Procurement Committee forrecommendation and Managing
Director, PSM, for approval.

Contract terms and conditions
toolbox;
Deliverable monitoring.

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UNIDO’s eProcurement Portal
Please visit: https://procurement.unido.org/.

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UNIDO’s eProcurement Portal: Procurement Notices

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eProcurement at UNIDO

UNIDO’s eProcurement Portal: Bidder Registration

1. Click on “RequestBidder Account”

2. The bidder
registration form will
pop up. Fill out allinformation and submit.

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ERP Supported Communications with Bidders

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Average Procurement Timelines
Example: Integrated Food Security Project in Kassala State, Sudan
Shopping Cart review and approval =>RFx Event publication (3 days)
Bidding period (18 days)
7 offers received and evaluated (5 days)
Lowest cost, technically acceptable offer=> € 21,500 awarded toEarthmoving Services Limited, Great Britain

4035302520151050SC appr - RFx Pub - RFx Open Resp PO Appr RFx pub RFx Open - Resp. Accept - Conf Apprdays
days
Accept PO apprdays
daysdaysAcceptance of offer => Approval and signing of Purchase Order(3 days)

Purchase Order approval => Confirmation approval (34 days)
Total time from requirement to PO confirmation: 63 days

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Forms of Collaboration with UNIDO
Which Type of Organization should Companies Normally Adopt?
Sub-Contracting or Consortia
What are UNIDO’s Rules on Collaborations With Local Business Partners?
Please refer to the Instructions to Bidders section in the RFx Event,requiring bidders to specify in their Offers:
the names and qualifications (including description of activities,
number of personnel employed, references to the clients andcompleted projects) of the proposed sub-contractor(s) and/orequipment manufacturers, if any, and the extent and nature of such
sub-contracting and/or equipment32

Sub-Contracting
Most common form of collaboration among companies dealing with UNIDO:UNIDO concludes contract with one company (“the Contractor”)

Contractor concludes individual contracts with sub-contractors• Sub-contractors need to be indicated in the Technical Bid
which will become part of the Contract under consideration;• In case of non-performance, UNIDO only deals with theContractor, not with sub-contractors.

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Consortia
In principle, permitted by UNIDO – and due to the complexity of procurementcases increasingly applied.
Requirements:• Bidders need to provide written declaration indicating:- members of consortium- nomination of the leading company with whom contract would be signed- purpose of establishment of a consortium- depending on the ‘form’ of a consortium attach all ‘legal’ documents• Once declaration has been received and accepted, separate bids by individual
member(s) of the consortium are not permitted and may be disregarded.

34Procurement and Innovative Solutions

Procurement at the right price;
Balance customer requirements with market readiness and value for money;
Open competition: Once size fits it all?
Beware of over-specified requirements;
Limit your terms and conditions to risks relevant to the type of procurement concerned [timeof delivery, warranty, SLA, etc];
Adapt, as far as you can, to vendor conditions;
Adapt, as far as possible, to market-ready products and services;
You get the right prices only when customers and providers understand each other;
Right size customer versus right size provider;
How important is it for the provider to have you as a customer?
Long term relationship;
Cultural affinities;
Seasonal trends;
Economic cycles.

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https://open.unido.org/index.html#/projects
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