How to be strategic when bidding on WB financed projects

Santa Cruz de Tenerife, Canary Islands
December 10, 2013
How to be strategic when bidding on
WB financed projects
Gilles R. Garcia
Manager, Enterprise Outreach Services
The World Bank Group
The World Bank Group
• Established in 1944 (together with the IMF) in Bretton
Woods, first loan in 1947
• 5 entities (IBRD, IDA, IFC, MIGA, ICSID)
• Headquarters in Washington DC, 200 offices worldwide
• $53B engagement in FY13
• 25 000 employees (15 000 staff and 10 000 consultants)
• AAA Bank and Development institution
• Only active in emerging and developing economies
The World Bank Group: 2 Banks in 1…
The Transaction Bank
providing financing to exporters
and investors
The Solutions/ Knowledge Bank
sharing 70 years of experience in
emerging economies
… to reach our two overarching objectives:
Ending Extreme Poverty by 2030
Promoting Shared Prosperity
The World Bank Group : A Transaction Bank
with 2 main doors
For Exporters
For Investors
• $31,5 B (60%) of WB lending in • $18,3B (35%) of IFC co2013 turned into $25B worth of
financing
procurement opportunities
• $2,7B (5%) of MIGA guarantees
against Political Risks
For a Total Commitment of $52,6 B in 2013
$ 25 B procurement opportunities on WB financed
contracts, $ 100 B on aid funded business
Banks
World
Bank
Other
Development
Banks
UN
EU
Development
Agencies
Bilaterals
… and $ 4 500 B of public procurement in developing
countries (15% of GDP)
World Bank $25 B procurement contracts …
• Regular flow of 100,000 WB financed contracts worth $25 billion
per year in all categories (CW,G,C), sectors (Hard to soft) and
size(from $10 000 to $600M),
• 10,000 contracts prior reviewed (10%) worth $12.7 billion (50%),
• 77 % contracts are ICB, 10 % contracts are NCB,
• 70 % of contracts awarded to local companies,
• « Best practice » projects
• 220 WB staff involved in procurement , the Bank is a referee for
companies who are sure to get paid,
• Large majority of bidders are SME’s.
…to access $ 4 500 B public procurement contracts
In FY 2013, Spain #1 on WB Prior Review Contracts
Millones
European Performance on WB-financed contracts
FY 2013
900
800
700
600
500
400
300
200
100
0
Data as of September 2013
Spain #2 on WB Prior Review Contracts FY 2007-2013
Overall Result
Millones
European Performance on WB-financed contracts
FY 2007-2013 Overall Result
4.000
3.500
3.000
2.500
2.000
1.500
1.000
500
0
Data as of September 2013
Spain Prior Review Contract Awards FY07-13
(data as of Sept. 2013)
8,00%
1.000
6,00%
800
600
4,00%
Millones
% of total prior review
contract awards
A Regular increase since 2010
400
2,00%
200
0,00%
0
2007 2008 2009 2010 2011 2012 2013
Amount (USD)
% of total amount
% of total contracts
• In FY 2008-2013, Spain was awarded some 324 Prior Reviewed Contracts,
worth close to $2 760 M
• Spanish performance estimates are at some 3000 contracts,
worth over $5 500 M
50% of Spanish Prior Review Contracts awarded in LAC,
primarily in Brazil, Mexico, and Colombia
By Region
EAP
0%
Millones
MENA
2%
Top Countries for Spanish
Bidders on PRC 08-13
AFR
10%
ECA
18%
LAC
50%
1.200
1.000
800
600
400
200
0
SA
20%
Infrastructures represent 96% of Spanish
Prior Review Contracts FY 2008-2013
By Sectors
By Category
1% 1%
1%
1%
Consultants
5%
Goods
42%
Civil Works
53%
16%
25%
Transportation
Water
Health & SS
Agriculture
55%
Energy & Mining
Public admin & law
Finance
Education
Spain #2 on Transportation Sector on
Prior Review Contracts FY 2008-2013
Millones
Leading European Countries in Transportation Sector
FY 2008-2013
2.500
2.000
1.500
1.000
500
0
Data as of September 2013
Spain #1 in Energy & Mining on
Prior Review Contracts FY 2008-2013
Millones
Leading European Countries in Energy & Mining
FY 2008-2013
800
700
600
500
400
300
200
100
0
Data as of September 2013
Spain #1 in Water Sector on
Prior Review Contracts FY 2008-2013
Millones
Leading European Countries in Water Sector
FY 2008-2013
500
450
400
350
300
250
200
150
100
50
0
Data as of September 2013
Average Contract: $8.5M, Median one: $500,000
For Spanish companies in 2008-2013
• CAF Construcciones y Auxiliar, $358M, Transportation (Goods), Brazil
• Dragados, $288M, Water (Civil Works), Poland
• Corsan-Corviam Construccion, $212M, Transportation (Civil Works),
Brazil
• Isolux Ingenieria, 165M, Energy & Mining (Goods), Bangladesh
• Aldesa Constructions, $86M, Transportation (Civil Works), India
• Carija, $18M, Transportation (Civil Works), Mauritania
• Iberdrola Renovables, $10M, Energy & Mining (Goods), Mexico
• Groupement Lopesan/ Volconsa, $5.6M, Transportation (Civil Works),
Senegal
• Instalaciones Inabensa, $2.9M, Energy (Goods), India
• Abarloa2, $260,500, Agriculture (Consultant Services), Tunisia
• Adasa Sistemas, $211,500, Agriculture (Goods), Morocco
• Epypsa, $238,000, Transportation (Consultant Services), Colombia
• International Indemar Fisheries, $93,000, Agriculture (Consultant
Services), Ghana
Pipeline LAC: 17 projects in Infrastructures
(E&M, T, W), worth over $1.8 B
2%
3%
3%
1% 1%
Countries
1%
2%
Brazil
Argentina
3%
Colombia
35%
7%
Peru
Jamaica
Bolivia
11%
Haiti
Nicaragua
OECS Countries
31%
Dominica
Belize
www.worldbank.org/projects
Pipeline LAC: 17 projects in Infrastructures
(E&M, T, W), worth over $1.8 B
www.worldbank.org/projects
Key Contact information can be found in the Project
Information Document (PID)
A selection of contacts for Pipeline projects in Brazil
Team Leaders
Implementing Agencies
Gaston Mariano Blanco, Senior Social
Protection Specialist based in Buenos Aires,
[email protected]
Brazil State of Ceara, Secretariat of
Planning and Management, Cristina
Medeiros, Project Coordinator,
[email protected]
Thomas Kenyon, Senior Private Sector
Development Specialist based in
Washington DC, [email protected]
Lizmara Kirchner, Senior Water &
Sanitation Specialist,
[email protected]
SEPLANDE, Luiz Otavio Gomes, State
Secretary of Planning and Economic
Development,
[email protected]
State Secretariat of Special Projects and
Metropolitan Management (SEPAM)
Regina Curitiba, State Subsecretary of
Resource Development, Tel: 55 27 3636
1190
Pipeline: 14 projects in Water in Africa, worth $1.7 B
By Country
2%
6%
0%
4%
Nigeria
Ethiopia
12%
45%
Africa Regional
Kenya
Mali
13%
Tanzania
Sierra Leone
Rwanda
18%
www.worldbank.org/projects
Pipeline: 14 projects in Water in Africa, worth $1.7 B
Pipeline in West Africa: 19 Projects worth $ 1.4 B
By Country
5%
By Sector
1%
3%1%
3% 2%
9%
7%
9%
15%
52%
53%
11%
18%
11%
Nigeria
Niger
Mali
Gambia
Ghana
Senegal
Guinea-Bissau
Cameroon
Burkina Faso
Mauritania
Water
Agriculture
Public admin
Education
Health & SS
Energy
Pipeline in West Africa: 19 Projects worth $ 1.4 B
www.worldbank.org/projects
The World Bank has NO contractual relationship
with companies
• Country Assistance
Strategy (CAS)
• Contractual Relation
Government
PMU
World Bank
• Procurement Rules
• Information
Dissemination
• Complaints
Companies
• Project Implementation
• Contractual Relation
World Bank Project Life Cycle
Country
Assistance
Strategy
Evaluation
Identification
Implementation
and Completion
Preparation,
Appraisal and
Board Approval
Implementation
and Supervision
http://go.worldbank.org/GI967K75D0
The Key Issue is to address the Real Issues …
Business
Opportunities
Identification
The Real Strategic
Challenge
• Systematic Web
based Screening
• Strategic Selection
• Field Focus
• Local Partnership
Bid Preparation
Project Implementation
Timing & Details
Critical
Mapping of the key
actors critical
• Payments
 PMU/CM/CD/
TTL/ RPM
• Corruption
 INT
• Clarity of Bidding
Documents
• Be responsive
• Ask questions to the
right people
… in each phase of the Project Life Cycle
Two Sets of Procurement Guidelines
For Consultants
http://go.worldbank.org/U9IPSLUDC0
For Goods & Works
http://go.worldbank.org/1KKD1KNT40
http://consultations.worldbank.org/consultation/procurement-policy-review-consultations
Mapping of the Key WB Actors Critical…
Consultant Guidelines, Page 47 – Appendix 3: Guidance to Consultants
 Contact the Task Team Leader
 Copy the Country Director for the borrowing country
 Copy the Regional Procurement Manager
 All names and contact information are available in the
Project Information Document (PID)
70 % of contracts awarded to local companies
(For 105 Countries with PSLO network representation)
Access detailed information on prior reviewed contracts awarded,
including:
• Type of contract
• Operational region
• Supplier name
• Client country
• Contract amount
• Sector
http://go.worldbank.org/BY6HRBV4E0
http://www.worldbank.org/
www.worldbank.org/projects
www.maps.worldbank.org
www.worldbank.org/projects
Accessing Procurement Notices
http://go.worldbank.org/KTPE1WKU20
From the Country Assistance/Partnership Strategy…
2 critical steps & sets of documents to track:
• Monthly Operational Summary (MOS)
http://go.worldbank.org/OG8CL2BD20
• PID/ PAD: Project Information Document and
Project Appraisal Document
http://documents.worldbank.org
… to submitting your bidding documents
Consultants Have 3 Options
1. To work on WB-financed projects
2. To work for the WB as consultants
https://wbgeconsult2.worldbank.org/
3. To work for the PMU to prepare the projects
Option 1, 10 times bigger than Option 2
Electronic Resources
• World Bank General Website:
 Search by Countries and Topics or by Projects & Operations
 http://www.worldbank.org/
• Advanced Search for Projects
 http://go.worldbank.org/YLPQAHBY40
• Procurement Guidelines
 http://go.worldbank.org/1KKD1KNT40
• Procurement Notices
 http://go.worldbank.org/YLPQAHBY40
• Procurement Awards and Summary Reports
 http://go.worldbank.org/BY6HRBV4E0
• Monthly Operational Summary
 http://go.worldbank.org/OG8CL2BD20
Muchas Gracias
Gilles R. Garcia
[email protected]
www.worldbank.org/business-global