Consultant Opportunities with the EBRD

Transcription

1 Consultant Opportunities with the EBRD Mr Andrea Baldan Head of CSU, Operations Mr Martin Ehrenberg Senior Advisor Consultancy Services Unit Thursday 17 th March, 2011 NL EVD Internationaal

2 6 things you need to know in order to be successful in providing consultancy services to the EBRD: 5 W s 1. Why does EBRD need consultancy services 2. Where does EBRD operate and are services needed 3. When are consultancy services needed 4. What kind of consultancy services are needed 5. Who are the key players in EBRD and their roles (and whom are you offering your services to) and 1 H 1. How does EBRD select consultants (incl eselection)

3 1. why?

4 why does the Bank need Consultancy Services: Bank s operations EBRD finances projects in both private and public sector, providing direct funding for financial institutions, infrastructure and other key sectors. The Bank s investments also help to develop skills, improve efficiency and strengthen institutions. Within this framework consultancy services are provided to support the Bank s operations and projects.

5 why should you be interested: Consultancy Contract Awards* in ,000, ,000, ,000, ,000,000 Value in of all Consultancy Contracts awarded (and number of Contracts awarded) trend 80,000,000 60,000,000 40,000,000 20,000,000 (918) (1.063) (1.100) (1.409) (1.565) * CSU contracts only

6 why should you be interested (2): Contract Awards* to Dutch firms in Value in of Consultancy Contracts awarded to Dutch firms (and number of Contracts awarded) (and % on EBRD total value) 5,000,000 4,500,000 4,000,000 3,500,000 4% trend 3,000,000 2,500,000 4% 3% 4% 2% 2,000,000 (34) 1,500,000 1,000,000 (17) (30) (36) (29) 500, * CSU contracts only

7 2. where?

8 where : 36 offices in 30 countries more than half bankers based in the regions

9 where : 2010 Contract Awards* by Country of Operation (share of value) Armenia, 4% Kyrgyz Republic, 4% Bulgaria, 5% Tajikistan, 6% Kazakhstan, 3% Georgia, 3% Turkey, 3% Romania, 3% Belarus, 3% Moldova, 3% Bosnia Herzegovina, 2% Azerbaijan, 2% FYR Macedonia, 2% Serbia, 2% Croatia, 2% Russian Federation, 9% UK**, 10% * CSU contracts only Regional, 12% ** Headquarters related contracts Other, 21% Ukraine, 13% Poland, 2% Mongolia, 1% Turkmenistan, 1% Albania, 1% Montenegro, 1% Slovak Republic, 1% Hungary, 0% Latvia, 0% Slovenia, 0% ( )

10 where : 2010 Contract Awards by Country of Operation to Dutch consultants (share of value) Value, % of total value % of EBR D Total Hungary, 12% Regional, 13% UK 9% Slovak Republic 7% Kazakhstan 6% CRO 2% UA, 2% Other, 4% Bosnia and Herzegovina Russian Federation Regional Hungary United Kingdom Slovak Republic Kazakhstan 724, , , ,627 9% Azerbaijan, 1% 200,000 7% 179,795 25% 19% 391,652 Kosovo, 1% 13% 12% 6% 30% 4% 2% 75% 2% 25% 4% Croatia 66,150 Bulgaria, 1% 2% 3% Russian Federation 19% Bosnia and Herzegovina, 26% Ukraine Kosovo 62,840 2% 36,357 Montenegro, 1% 1% 0.3% 9% Azerbaijan Bulgaria 30,090 1% Turkmenistan, 0% 28,150 1% 1% 0.4% Montenegro 24,950 1% 2% Turkmenistan 8,550 0% 1% * CSU contracts only

11 3. when?

12 when are Consultancy Services needed Understand the Bank s project lifecycle to know: When does the consulting opportunity arises (concept, pre-signing, post-signing?) What kind of consultancy services are needed (project preparation or project implementation?) Whom to market the services to (Bank or Clients?)

13 when : Consultancy Services and project cycle Final repayment Initiation Final maturity Concept clearance [Sale of equity] Repayments Disbursements Project Implementation Consultancy Services Concept/ structure review Signing Final review Board approval Publication of Board approved Projects Project Preparation Consultancy Services Publication of Project Summary Document

14 4. what?

15 what kind of consultancy services does the Bank need Consultancy Services type: project preparation and project implementation Funding sources: TC, Bank Budget and loan proceeds Business sectors

16 what : type of Consultancy Services To assist the Bank s Clients with: Project Preparation e.g. feasibility studies, project design, environmental impact assessment Project Implementation: capacity building, institutional development, eg. project implementation units role of a partner project supervision: Independent Engineer very clearly defined contractual role To assist the Bank with: due diligence (technical, financial, environmental, integrity etc) project monitoring, lenders technical supervisor

17 what : funding sources available to Dutch Consultants Technical Co-operation Funds from: Dutch Technical Cooperation Funds (tied and untied) Shareholders Special Fund established with the Bank s net income, operational since July 2008 Other untied Donor funds (e.g. Japan, Sweden, Norway, Multi Donor Fund for Early Transition Countries, European Union), Western Balkans Fund Bank Administrative Budget Loan Proceeds

18 what : Technical Co-operation funds Focus on: Initiatives to address economic crisis in the EBRD s countries of operations, e.g. FI Institution Building and Targeted Crisis Response Framework Facilities, Trade Facilitation Programme Crisis Response Training programmes, Risk Management Advice Sustainable energy financing facilities incl. renewable energy Infrastructure including Municipal and Environmental Infrastructure & Transport and PPP s Support institution building and training - e.g. Turnaround Management Programme (TAM), Business Advisory Services (BAS), TAM/BAS Crisis Response Programme, Legal Transition Programme (LTP); Policy Dialogue

19 what : ALL* Consultancy Assignments by source Technical Co-operation funds Bank loan proceeds Bank Administrative budget Annual Estimates 40 to 100 m 5 to 30 m 30 to 70 m In m 2.57 m m Contract party 1,587 contracts 7 contracts 1,227 contracts Clients or Bank Clients Bank Bank Administrative budget, 36% Technical Cooperation funds, 62% Bank loan proceeds, 2% * Includes CSU, TAM (6.5Mil - #728), OGC (16.7Mil - #509) and loan funded

20 what : 2010 CSU Contract Awards by Project Sector* (all EBRD) Legal Reform, 3% NC 2% Environmental and Social Reform, 2% IT, 8% Transport 7% Natural Resources, 2% Economic Reform, 2% Finance, 19% Industrial and Manufacturing, 2% Other, 6% SME, 10% P&E, 19% MEI, 17% * Share of Value

21 what : 2010 CSU Contract Awards by Project Sector* (Dutch Consultants) Educati on, 2% Other, 5% IT, 6% Agribusiness, 1% Environmental and Social Reform, 6% 6% 2% 10% Transport, 34% % value of EBRD total 2% Fi nance, 19% 3% P&E, 27% * Share of Value

22 what : an example of Municipal and Environmental Infrastructure (MEI) Sector The MEI sector covers: direct revenue earning services (water supply, wastewater collection and treatment, solid waste management, district heating, natural gas distribution and urban public transport). Infrastructure (urban roads, environmental clean-up operations). The provision, financing and management of these municipal and environmental services are the responsibility of local or regional governments. Environmental services, such as industrial and hazardous waste management, that may be organised nationally or outside local government responsibility.

23 what MEI Standard Consultancy Assignments and Types of Specialists Financial Audit (auditors) Feasibility Study (sector engineers, environmental, financial, legal experts) Environmental Impact Assessment (environmental experts) Financial and Operational Performance Improvement Programme (FOPIP) (financial, management information system, corporate restructuring experts) Legal Due Diligence (legal experts)

24 what MEI Standard Consultancy Assignments and Types of Specialists Required ( cont d) Financial Due Diligence (financial experts) Corporate Development Programme (financial, legal, management information system and IT, business planning experts) Project Implementation Unit; Procurement Assistance (procurement experts) Creditworthiness Enhancement Programme (financial, legal, sector regulation experts) Public Service Contract (legal, corporate, financial experts)

25 5. who?

26 who : Projects Countries Sectors About us What we do Who we are Where we are Who we work with ( ) Working with us Project financing Procurement (see next!) Trade Loan syndications Advice and support Jobs at the EBRD Procurement Notices (see next slides!)

27 who :: procurement in ebrd.com Consultancy Services - Consultant opportunities (procurement notices) - eselection -Data & reports

28 who : Consultancy Services Unit (CSU) CSU provides technical advice and operational support to users of consultancy services within the Bank and to its Clients when selecting and engaging consultants. CSU is also responsible for ensuring compliance with the Bank s Procurement Policies and Rules with donors rules and requirements when donor funds are used for the provision of consultancy services. CSU usually chairs as not-voting member in the evaluation Committee s for shortlisting and selecting of Expressions of Interest and Proposals for consultancy assignments with a supervisory role on procedural and contracting aspects

29 who : Banking department The Banking department carries out EBRD s lending and investment operations by means of projects; consultancy services are used to support these operations When consultancy services are for the benefit of the Bank, Banking members are key players in project preparation, consultants selection manage the consultants during delivery of the services

30 who : Banking business groups Sector Sector Teams Teams Energy Energy Efficiency Efficiency & Climate Climate Change Change Financial Financial Institutions Institutions // Trade Trade Facilitation Facilitation Prog. Prog. Industry, Industry, Commerce Commerce & Agribusiness Agribusiness Municipal Municipal & Environ. Environ. Infrastructure Infrastructure Natural Natural Resources Resources Power Power and and Energy Energy Transport Transport Monitoring Monitoring Country Country Teams Teams Turkey, Turkey, Eastern Eastern Europe, Europe, Caucasus Caucasus and and Central Central Asia Asia Russia Russia Central Central Europe, Europe, Western Western Balkans, Balkans, Turkey, Turkey, Telecoms, Telecoms, Informatics Informatics and and Media Media

31 who : the Client s role The Client selects consultants in assignments where the Client is the main beneficiary of the services (mostly project implementation) The Client is responsible for all aspects of the procurement of contracts. It invites, receives and evaluates tenders and awards contracts which in all cases are concluded between the client and the consultant. The EBRD is not a party to the consultancy contract and channels TC funds through a grant agreement with the Client. The role of the Bank is to review and monitor the client s tender process and assists contract administration to ensure compliance with procedures.

32 who : Consultants Participation Success rates in open competition for top ten consultants nationalities by value of contract awards: British: 9% - Italian: 22% German: 13% - Dutch: 9% Russian: 17% - Danish: 12% Swedish: 14% - American: 12% French: 17% - Spanish: 5% Success rates are calculated as the ratio between the number of expressions of interest submitted and resulting contract awards

33 who to contact in EBRD Project enquiries (existing EBRD projects only) Tel: +44 (0) / fax: +44 (0) Business Development and project proposals Tel: +44 (0) / fax: +44 (0) General enquiries Tel: +44 (0) / fax: +44 (0) Procurement opportunities via web site: Publications Tel: +44 (0) / fax: +44 (0) Consultancy Services Unit Tel: +44 (0) / fax:+44 (0) eselection Tel: +44 (0) / Fax: +44 (0)

34 how?

35 How How EBRD or its Clients select consultants Strategy for winning contracts (eselection for Consultants)

36 Procurement Policies and Rules (PP&R) Revised Procurement Policies & Rules (PP&R) were adopted by the Bank s Board of Directors in May 2010 after a public consultation process: policies/procurement.shtml Based on fundamental principles of non-discrimination, fairness and transparency Harmonisation with other International Finance Institutions (IFIs) on-going (e.g. Standard Request for Proposal) Revised PP&R define new thresholds for consultant selection procedures

37 Procurement Policies and Rules (PP&R) Section 5.1 of Bank s PP&R: The main concern when choosing consultants should be the quality of the services provided.

38 Main Selection Methods (1) QUALITY-BASED SELECTION: No consideration of price during selection, highest-ranked Consultant is invited to negotiate the contract, generally for (i) very complex assignments which can be carried out in substantially different ways and cost proposals may not be comparable (ii) assignments with large downstream impacts (iii) contracts below EUR 300,000

39 Main Selection Methods (2) QUALITY- AND COST-BASED SELECTION: Selection based on quality (approx. 80%) and price (approx. 20%), allocation to quality/price depends on nature of assignment, generally for (i) standard assignments (ii) scope of services are well defined and parties can estimate with reasonable precision the required input, staff time, duration etc. (iii) contracts above EUR 300,000 if standard and not complex

40 Overview of Selection Procedures for Consultant Selection (EBRD or Client) Direct Selection (quality-based selection, less than EUR 75,000) Select consultant Negotiations Contract Selection from Shortlist (quality-based selection, EUR 75,000 EUR 300,000) Call for expressions of interest Long list Shortlist Select consultant Negotiations Contract Evaluation of Proposals (quality- & cost-based selection, EUR 300,000 and over) Call for expressions of interest Long list Shortlist Proposal (tech & fin.) Select consultant Negotiations Contract

41 Selection Procedures Direct Selection Quality-based selection (less than EUR 75,000) The Executing Agency (EBRD or Client) selects without competitive selection Bank may negotiate on budget, team composition and contractual terms How does the Client or Bank choose for direct selection? How can consultants improve their chances of being awarded Direct Selections?

42 Selection Procedures Selection from Shortlist Quality-based selection (EUR 75,000 EUR 300,000 for firms and EUR 75,000+ for individual experts) Generally begins with a Procurement Notice requesting expressions of interest on the Bank s Website The Shortlisting Committee creates a shortlist of firms who are ranked according to technical merit The top ranked firm is sent the Terms of Reference (ToR) and invited to submit a workplan and budget When negotiations are successful, contract is awarded If negotiations fail, second ranked firm is contacted

43 Selection Procedures Evaluation of Proposals (1) Quality- & cost-based selection (EUR 300,000 and over) Procurement Notice and shortlisting of firms (1) generally between 3 and 6 firms (2) normally no more than 2 consultants from the same country (3) normally requires at least one qualified consultant from one of the Bank s Countries of Operation Shortlisted firms are sent the Request for Proposal (RFP) package

44 Selection Procedures Evaluation of Proposals (2) Request For Proposals (RFP) - RFP1 - Data Sheet - RFP2 - Instructions to Bidders - RFP3 - Templates and Forms - RFP4 - Evaluation Criteria (!!!) - RFP5 - Terms of Reference - RFP6 - Contract Template

45 Selection Procedures Evaluation of Proposals (3) RFP 4 (Evaluation Criteria) Key Points: (1) Firm s project experience (by subject matter, sectors, track record in specific countries) (2) Methodology, work plan, comments on ToR (3) Calibre/CVs of experts proposed to carry out the assignment (4) Other (local language, local presence/input) (5) Weight of financial proposal generally 20%

46 Selection & Contracting Timeframe Direct Selection Selection from Shortlist Evaluation of Proposals 7-14 days 5-7 weeks 4-6 months Always depends on circumstances of individual case (could be longer if Client selects/contracts which is not fully familiar with EBRD standard procedures)

47 Statistics on Selection Procedures Share of Value of Contract Awards by Selection Method 100% 80% 60% 40% 20% 0% Evaluation of Proposals Selection From Shortlist Direct Selection

48 Clarifications and Debriefing Before deadline for submission expires, request clarifications from Bank or Client (RFP 1 generally sets deadline for questions) If unsuccessful you may ask for a debriefing when selection process is completed Complaints should be sent to Bank or Client with a copy to the Director of the Banking Department Team and the Director of the Procurement Department

49 Contracting (Bank or Client?) (1) Bank-Contracted Templates (2) Client-Contracted Templates (3) Applicable Law & Arbitration (4) Indirect Taxes (VAT) (5) Lump-sum contract vs. Time-based Contract (6) Periodical Payment / Milestone Payments (7) Advances

50 Strategy for Winning Contracts Basics (1) General considerations: What is level of competition? Be selective do you have any comparative advantage? Who will select/contract? EBRD or the Client? Is addressee banker or municipality? One step (selection from shortlist on basis of expressions of interest only) or two steps (expression of interest and request for proposals)?

51 Strategy for Winning Contracts Basics (2) One step after the other: (i) Focus on smaller assignments first (the first contract with EBRD enables you to demonstrate your excellence) (ii) The expression of interest (EoI) matters (starting point) Carefully assess submission requirements / evaluation criteria (i) (ii) Procurement Rules (e.g. Conflict of Interest?) Eligibility (iii) Deadlines (iv) Budget viable? (v) Specific submission / evaluation requirements?

52 Strategy for Winning Contracts Assess Notice & Evaluation Criteria (1) Albert Einstein: Not everything that counts can be counted and not everything that can be counted counts

53 Strategy for Winning Contracts Assess Notice & Evaluation Criteria (2) What are the specific submission requirements/evaluation criteria for EoIs/proposals? (i) Project references: Previous similar project experience? Similar budget/duration? Similar services/objectives/ activities? Similar country/region? (ii) Key experts/cvs: Relevant previous professional experience? Language requirements? How many key (!) experts? (iii) For proposals: Methodology, comments on Terms of Reference ( ToR ), workplan Pay attention to detail! Is your expression of interest/proposal responsive?

54 Strategy for Winning Contracts Assess Notice & Evaluation Criteria (3) Be pragmatic when drafting EoI or proposal Main objective is to address the requirements in the procurement notice or Request for Proposal package and to be awarded the contract Main objective is not to describe how to successfully carry out the assignment in the technical proposal

55 Strategy for Winning Contracts Example Consultant Profile per Notice Corporate Services are required. The Consultant should be a firm or a group of firms with 1. Substantial relevant project experience related to district heating and respective corporate finance, law and tariff studies. 2. Extensive project experience in the EBRD s countries of operation and in working with International Finance Institutions (IFIs). 3. Experts capable of carrying out the Assignment. Key experts should preferably include a project manager, a district heating utility financial and operational expert, a legal expert with good knowledge of regulatory framework and legal practices of district heating sector and public service contracts in Russia and a financial expert with good knowledge of district heating sector and tariff setting mechanisms in Russia. Experts shall have a minimum of 5 years experience in the activity for which they are proposed. 4. It is recommended that a significant part of the consultancy input will be carried out by local sub-consultants/contractors, specifically the preparation of public service contract and negotiation of tariffs with local tariff regulator.

56 Strategy for Winning Contracts Join Forces (1) Be realistic can you match the submission/evaluation criteria? If not, consider (i) consortia or sub-contracting opportunities, identify potential local, regional or international partner firms to complement your firm s strengths (know-how, project references, key experts) (ii) engaging external experts/freelancers to satisfy requirements related to key personnel

57 Strategy for Winning Contracts Join Forces (2) Know the market. Research and assess: (1) Contracts awards (2) Previous shortlists for similar assignments (3) Statistics EBRD information available under: procurement/consultancy.shtml Also check similar webpages of EU, World Bank, IFC etc.

58 Strategy for Winning Contracts Be Kind to the Evaluators (1) (1) The key is to enable the evaluators to quickly and easily find and assess the relevant information (2) Remember Blaise Pascal who wrote: I would have written a shorter letter but I did not have the time!

59 Strategy for Winning Contracts Be Kind to the Evaluators (2) Consider your application from perspective of evaluation committee - are you able to easily assess your firm s strengths and compliance with evaluation criteria? Submit documents that are (i) (ii) tailored (adapt your regular standard documents) focussed (all key points/evaluation criteria addressed?) (iii) concise (table of content, clear structure & headlines, easy to assess, short sentences, use tables instead of running text when appropriate etc.) (iv) accessible (submit one pdf-file not many)

60 Strategy for Winning Contracts - Example for Project References Reference No. Name Firm Country 1) Background Assignment Title: Overall Assignment Budget (EUR) Proportion carried out by Consultant (%) Detailed Description of Assignment No of Staff provided Name of Client (public/ private) Funding Source/ Donor Duration Partners Consulting Services Provided 1) Key Tasks per Objective 2) Overall Objectives 3) Results/Outcome 2) Activities per Key Tasks 3) Deliverables/Outputs

61 Strategy for Winning Contracts - Example for Describing Experts Experience Assignment Title: Duration: (m/year) to (m/year) Country: Company/Client/ Donor: Expert s Position/ Job Title: Description: Relevant Responsibilities/Tasks Relevant Activities Relevant Deliverables/Outputs

62 Strategy for Winning Contracts Avoid the Big Don ts Do not submit financial offer when selection is based on quality (unless otherwise requested), in particular never add financial offer to EoI! Seal financial offer (ensure confidentiality!) Do not apply if your firm is not eligible (check eligibility clause in notice) Do not submit late Do not liaise with EBRD/Client after publication of notice (apart from requests for clarifications via instructions) Do not stay silent on conflict of interest!

63 Strategy for Winning Contracts Be Up to Date (i) Monitor developments in the relevant sector/country, by donor/ifi (ii) Monitor EBRD s website for Procurement Opportunities (iii) Subscribe to EBRD eselection and procurement alerts

64 Information available under EBRD Procurement EBRD s new projects Project pipeline and executing agencies Lists the latest public and private sector projects approved by the EBRD Procurement notices for consultancy assignments Consultancy contract awards and shortlisted consultants (These pages are regularly updated) Major contracts that were awarded in operations financed by the EBRD

65 ebrd.com - Procurement Notices Search by sector Search by country Search by contract type - Consultancy Services - Corporate goods works and services - Project goods, works and services Search Results - Issue Date - Deadline - Country - Notice Title - Sector - Notice Type

66 ebrd.com - Procurement Notice Procurement Notice Sign-up for alerts!

67 how does EBRD select consultants eselection for Consultants

68 eselection for Consultants This is a web based application intended to provide: More transparency More efficiency Wider participation in competition Level playing field

69 eselection: Benefits for Consultants Subscribe for electronic notification about new opportunities by industry sector and area of expertise to increase competition Submit expressions of interest & proposals (including financial proposals) on-line/electronically Consultant can view the status of application, manage participation in selection processes and monitor the progress of any selection process Cost reductions as a result of on-line submissions

70 eselection - Register here Click here to view procurement notices Send a query or request assistance Sends with link to reset password

71 Questions? He must be very ignorant for he answers every question he is asked. Voltaire

72 Thank You! Mr Andrea Baldan Mr Martin Ehrenberg Head Operations Consultancy Services Unit Senior Advisor Consultancy Services Unit +44 (0) (0) (0) (0)