The Bank s Procurement Framework

Transcription

1 The Bank s Procurement Framework

2 Outline 1. Introduction to the AfDB Group 2. Bank-financed contracts data 3. Procurement relationships, methods and safeguards 4. Information on Business Opportunities 2

3 1. Introduction to the AfDB Group

4 The African Development Bank Group AfDB Group In Brief Our Clients African Development Bank African Development Fund Nigeria Trust Fund Founded RMCs 27 Non RMCs Capital=USD 95 billion Middle-Income Countries Low-Income Countries Post-Conflict & Fragile Situations 4

5 The African Development Bank Group Morocco Mali Algeria Tunisia Egypt Sudan Japan Senegal Burkina Faso Chad 30 Representations Sierra Leone Liberia Togo Ghana Ivory Coast (HQ) Nigeria Cameroon Gabon CAR DRC South Sudan Uganda Rwanda Burundi Ethiopia Kenya Tanzania Angola Zambia Malawi Zimbabwe Madagascar Mozambique Mauritius South Africa 5

6 6

7 The Bank s Assistance To Africa Financing Products Type of Intervention Procurement Grants & Concessional Lending Loans & Equity Investments Projects & programbased operations Technical Assistance Non-project activities Goods Works Services 7

8 The Ten Year Bank Strategy Light up & Power Africa +162 GW electricity generated million on-grid connections + 75 million off-grid connections Feed Africa + 150m people adequately fed + 100m people lifted out of poverty + 190m hectares with restored productivity Industrialize Africa Industrial contribution to GDP increased by 130% 35 special economic zones supported 30 PPPs developed & strengthened 8

9 The Ten Year Bank Strategy Integrate Africa Building regional infrastructure Boosting intra-african trade & investment Facilitating movement of people across borders Improve the quality of life for the people in Africa Creating 80 million jobs Building critical skills Improving access to water & sanitation Strengthening health systems 9

10 Our Projects Multi-sector 16% Environment 0% Agriculture 12% Social 10% Finance 13% Industry & Mining 4% Infrastructure 45% Total Cumulative Approvals ( ) amounts to 131 billion USD

11 2. Bank-Financed Contracts Data

12 Size of Operations Billion USD 3.00 Value Number 3, , , , ,

13 Distribution of Contracts By Value (Million USD) Goods Works Services 1,960 1,856 1,841 1,541 1,

14 Distribution of Contracts By Number Goods Works Services 976 1, ,

15 AfDB Group Funded Projects in Kenya Sectors (Value in UA Million) Nb Value Nb Value Nb Value Nb Value Nb Value Nb Value Agriculture Communications Environment Finance Ind/Mini/Quar Multi-Sector Power Social Transport Water Sup/Sanit Total

16 Contracts won by Kenyan Firms ( ) Expenses Categories Contracts Awarded By Number GOODS WORKS SERVICES Total By Value (UA Million) GOODS WORKS SERVICES Total

17 Contracts Awarded to Kenyan Firms Awarded Contracts Contracts Awarded in Number % 15.00% 10.00% 5.00% Share in AfDB Overall Contracts Awarded Contracts Awarded in Value (UA Million) Number of Contracts Awarded Value of Contracts Awarded Number of Awarded Contracts By Expense Category Value of Awarded Contracts By Expense Category 12% 30% GOODS 11% 26% GOODS WORKS WORKS 58% SERVICES 63% SERVICES 17

18 Kenyan presence should be improved Share in AfDB Overall Contracts Awarded By Number 17% 7% 4% 4% 4% By Value (UA Million) 6% 2% 2% 3% 2% 18

19 3. Procurement relationships, methods and safeguards

20 Procurement Relationships AfDB Financing Agreement Borrowers Payment & Dialogue with Industries Complaints Contractors Suppliers Consultants Bank s Right to Audit

21 Roles and Responsibilities Advertises and Issues Bidding Documents Evaluates and Selects Provides responses to complaints from bidders Awards and Signs Contract Publicizes tender results Supervises Contract Execution Bank provides nonobjection and comments on each stage of the selection process Prepares SBDs for Use by Borrowers Provides Free Access to UNDB & AFDB Ensures processes meet procurement principles Provides of No objection Reviews complaints from bidders Seeks appropriate redress from borrowers Imposes sanctions in case of Fraud & Corruption Bank is not a party to Contract 21

22 Eligibility ADB NTF ADF Waivers: ADB-ADF jointly co-financed contracts Reliance on BPS or Third Party rules and procedures The Bank/EBRD MRA (others under negotiations, e.g. EIB) Case by case 22

23 The Procurement Framework Policy Methodology Board Approval Operations Procurement Manual Procurement Toolkit Management Approval 23

24 Procurement Principles Economy Efficiency Equity Effectiveness 24

25 Main Features of the Bank s Procurement Framework Value for money Risk based fit for purpose approach Use of Borrower procurement system Capacity building at country level E-Procurement Complaints ERSP 25

26 Main Features of the Bank s Procurement Framework Beneficial ownership Development of national industries Fragile situations Co-financing Contract monitoring 26

27 Selection of Procurement System Risk-based assessment of the Borrower Procurement System Use of Borrower Procurement System in FULL BPSs cannot be relied upon due to risks and other factors Use of Bank s PMPS In FCS, emergency situations or when joint co-financing Use of other internationally accepted Third Party rules and procedures

28 Procurement Methods Goods & Works Open Competition Detailed specs Price major factor No negotiation One envelope / Multistage Consultancy Services Shortlisting TOR s Price can be a minor Negotiation usual Two envelope 28

29 Bank Oversight Others (with MOU) When Using BPS When Using Bank s PMPs When Using Third Party PMPs Procurement Audits Prior Review Post Review Procurement Reports and Audits Independent Procurement Review 29

30 Approach To Private Sector Operations Accepted commercial practices Conformity with the Procurement Plan Fair market price Adapting to various business models (PPP, etc.) Post review Ensuring Economy, Efficiency, Transparency and Open Competition for large contracts Performance and contract management Eligibility 30

31 4. Information on Business Opportunities

32 Important General Information Project information: AfDB Procurement Policy and Procedures: AfDB Standard Bidding Documents: ADF / ADB eligibility rule 32

33 Specific Information General Procurement Notice (GPN): Specific Procurement Notice (SPN): UNDB journal / AfDB website 33

34 Projects & Operations Resources for Businesses

35 Projects & Operations E-Consultant

36 Procurement Statistics Link for Bank statistics on procurement: /projects-andoperations/procureme nt/toolsreports/procurementstatistics/ 36

37 Wining Contracts Under Bank Financed Projects Anticipation Bidding Period Know your strengths, target your sector(s) and country(ies) Study the Bank CSP, Identify projects under preparation and appraisal Subscribe to updates and alerts on the Bank s project portfolio and Tender Notice Study national market, establish partnerships with other firms at national level Identify executing agencies in countries beware of conflict of interest Study the Bank Procurement Policy Framework, Bank and Borrower SBDs Seek clarifications from contracting agency Prepare proposals/bids in accordance with ToRs and specifications Demonstrate technical and financial strengths and track record in specific fields Don t contact the Bank Avoid underbidding Demonstrate compliance with the Bank fraud/corruption Policy requirements 37

38 Wining Contracts Under Bank Financed Projects Contract Execution Perform as per the contract terms Control and avoid unfounded contract variations Variations above certain thresholds are not accepted by the Bank 38

39 Thank You Building today a better tomorrow