Cape Town, 10 May 2017 Solutions and Innovations in Procurement

Transcription

1 Cape Town, 10 May 2017 Solutions and Innovations in Procurement The Vision: Procurement in Investment Project Financing supports clients to achieve value for money with integrity in delivering sustainable development

2 » Summary of New Procurement Framework (NPF).» Business Opportunities in the Energy and Water Sectors in the AFRICA Region.» Summary of recent Environmental, Social, Health and Safety (ESHS) Enhancements. Solutions and Innovations in Procurement

3 Effective Date July 1, 2016 Apply to Investment Project Financing Project Concept Notes on or after Effectiveness Date The New Procurement Framework enables Borrowers and Bank Task Teams with: More choices for different situations and contexts Flexibility to adopt Fit for Purpose procurement approaches Consistency instead of Equivalency Value for Money Key Messages on the New Procurement Framework Solutions and Innovations in Procurement 3

4 New Procurement Framework underpinned by seven core principles 1.Value for Money (VfM) procurement is effective, efficient, economic, manages risks and accounts for life cycle cost. 2.Fit for Purpose project outcomes determine procurement arrangements. 3.Economy procurement includes sustainability, quality, and non price attributes. 4.Efficiency procurement arrangements are proportional to the value and risk and are time sensitive. 5.Integrity procurement process is reliable and instills confidence in bidders and those who manage it are ethical. 6. Transparency information is publicly available and appropriately reported. 7. Fairness equal opportunity and treatment of bidders, equitable distribution of rights and obligations and credible dispute resolution process. Solutions and Innovations in Procurement 4

5 An enhanced vision and seven expanded core principles. Exclusion of Bank s guarantees and Financial Intermediary loans and grants to private sector beneficiaries. Introduction of most advantageous bid to achieve best value for money (VfM) including non price aspects for complex, innovative procurement. New concept of Fit for purpose in lieu of one size fits all. Emphasis on Project Procurement Strategy for Development (PPSD) to guide selection of the optimum approach to VfM throughout the procurement cycle in support of the Project s Development Objectives. Solutions and Innovations in Procurement 5

6 Sustainable procurement, includes Social, Economic and Environmental benefits introduced (but Non mandatory) consistent with Core Procurement Principles Based on the Borrower s policies on economic, social, and environmental sustainability. M&E should be evidence based. Value engineering: Substitution of materials and methods, reduction of times, or choice of less expensive alternatives to optimize fitness for purpose and value for money. Use of National Procurement Procedures when approaching national market using national open competitive procurement. Use of Alternative Procurement Arrangements (APA) versus current unitary approach: Agency level (assessment methodology) and other MDBs or bilateral (lead partner; MoU) Recourse to Non Compliance is now expanded and remedies will be proportional to the severity of the infringement versus only misprocurement. Solutions and Innovations in Procurement 6

7 Modern Fit for purpose Tailored Responds to client needs Riskbased Solutions and Innovations in Procurement

8 For More Information Learning and Knowledge Sharing Platform Solutions and Innovations in Procurement 8

9 Solutions and Innovations in Procurement The Vision: Procurement in Investment Project Financing supports clients to achieve value for money with integrity in delivering sustainable development

10 » Total 48 countries:» 19 Fragile and conflict affected» 26 low income» 12 lower middle income» 7 upper middle income» 1 high income Solutions and Innovations in Procurement

11 » Two Pillars: (i) Pillar 1: Competitiveness and Employment (ii) Pillar 2: Vulnerability and Resilience Governance and Public Sector Capacity are the foundation of the strategy. Pillar 1 focuses on key domestic sectors like Water & Energy that support competitiveness. Solutions and Innovations in Procurement

12 Chart 1: by Sector (US$ b) Energy Water Chart 2: by Country(US$ m) Energy Water The South Africa Eskom Project ($4 billion) and Africa Regional Projects ($2.7 billion) are included in Chart 1, but NOT on Chart 2.

13 The Eighteenth Replenishment of IDA (IDA 18) is the largest replenishment (USD 75b) in IDA s 56 year history and presents a significant step change in its policy and financing framework. The implementation tools will primarily be IPF or PforR (Work in Progress) Solutions and Innovations in Procurement

14 IDA18 Allocation(US$ billion) Energy, 6 Water, 3.5 OTHER REGIONS, 30 AFRICA Other Sectors, 35.5 Lending for the Next 1 Year (US$ m) Energy Water Solutions and Innovations in Procurement

15 » Countries of Firms won Large Value Contracts (>US$ 5m) FY in Africa (Water & Energy Sectors Only) Solutions and Innovations in Procurement

16 MDBs, including the WB, are pursuing for crowding in Private Sector Finance to maximize the mobilization and catalyzation of private sector resources to support countries for growth and sustainable development by: (i) Creating an investment friendly environment [enhance country s investment climate, market liquidity, management capacity, governance etc.] (ii) Expanding and standardizing instruments like guarantees, insurance, blended finance, equity investment, liquidity backup. (iii) Blending concessional resources and private capital when wide gap exists between economic/social and the commercial returns of a project Solutions and Innovations in Procurement

17 » Energy» Generation > Hydro/Thermal/Renewable (Reduce Cost of Production and Low Carbon Emission)» Transmission & Distribution > Regional Projects» Access > Sector Reform / Improved Pricing.» Water» Integrated water resources management» Urban water supply system» Institutional support Solutions and Innovations in Procurement

18 » Energy Sector:» Nigeria Electricity Transmission Project $364m» Cameroon Kribi Gas Power Project (AF) $60m» Rwanda Electricity Sector Strengthening Project $95m» Ghana Sankofa Gas Project $700m» Niger Electricity Access Expansion Project $65m» Tanzania Rural Electrification Expansion Project $200m» Sierra Leone Western Area Power Generation Project $40m» Water Sector:» Mozambique water Service and Institutional Support $90m» Lilongwe Water Project $71m» Zimbabwe national Water Project $20m» DRC Urban water Supply (AF) $166m» Mali Bamako Water Supply Project $30m Solutions and Innovations in Procurement

19 »How to Access in the World Bank s External Website the Procurement Opportunities under the Bank funded Projects? Solutions and Innovations in Procurement

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24 KEY PROCUREMENT ACTIONS Identify development need/s, outcome/s to be achieved and initial time and cost constraints. ESHS considerations ensure the borrower s ESHS policies are fit for purpose Task Teams (including Procurement + Safeguards) collaborate to understand the issues at the country, regional and project levels e.g.: consider the risks a project of this nature could have at this location consider community needs and expectations e.g.: impact assessments social management plans etc. Slide 24

25 KEY PROCUREMENT ACTIONS Research and analyze the supply market. Choose appropriate selection method and approach to market options. Prepare PPSD and Procurement Plan. ESHS considerations In planning the procurement: consider ESHS needs when analyzing potential supply markets e.g.: delivery of good international ESHS industry practice in that region how the market costs ESHS delivery plan how ESHS risks will be managed as part of the procurement process and dealt with commercially and technically check for new approaches and innovation in managing ESHS risks include ESHS planning in PPSD Slide 25

26 KEY PROCUREMENT ACTIONS Specify the requirements, and develop evaluation methodology. Prepare to go to market. ESHS considerations ESHS policies, standards, measures and requirements ESHS information that bidders/proposers should submit e.g.: their ESHS Code of Conduct their initial ESHS Management Strategies and Implementation Plans (MSIP) CVs of ESHS Key Personnel and their availability ESHS reporting Slide 26

27 KEY PROCUREMENT ACTIONS Approach the market. Select Most Advantageous Bid/Proposal. Award contract. ESHS considerations give market sufficient notice of ESHS requirements and priorities get specialist advice in assessing each bidder s/proposer s ESHS understanding, capacity and capability use pre-contract award discussions/negotiations to clarify and finalize ESHS requirements ensure contract encapsulates the final agreement Slide 27

28 KEY PROCUREMENT ACTIONS Proactively manage contract implementation, including ESHS risks. Quickly take appropriate action to prevent, mitigate or manage emerging risks. Slide 28 ESHS considerations During contract implementation: review and approve contractor s ESHS MSIPs/C-ESMP check compliance with the contractor s ESHS Code of Conduct ensure contractor submits ESHS reporting in full and on time monitor reporting take timely and appropriate action to manage emerging risks

29 KEY PROCUREMENT ACTIONS Post implementation review. Has the contract delivered VfM? What are the lessons learned? ESHS considerations During the review of the contract : review overall ESHS performance and outcomes review how the Bank, borrower, and contractor managed emerging ESHS risks and impacts assess how well the contractual incentives and sanctions worked in practice assess what worked well and what could have been done better prepare a lessons learned report to inform future projects Slide 29

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31 Consultant s proposals must now address ESHS risks and impacts associated with the project Consultant s ESHS capacity and capability now evaluated Consultant is required to submit its ESHS Code of Conduct TOR to contain ESHS as part of the services ToR to describe ESHS Key Expert s scope of services Proposal must contain: consultant s understanding of the ESHS provisions tasks that will deliver the ESHS outputs ESHS Key Expert/s to be named in the proposal and contract Slide 31

32 World Bank Website: New Procurement Framework : Updated SBDs: Updated SPDs:

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