Upphandlingskonferensen Stockholm 23 November 2017 Jan Jackholt Director Procurement Policy and Advisory Department
What is the EBRD? The EBRD is investing in changing people s lives and environments in more than 30 countries that stretch from central Europe to Central Asia, the Western Balkans and the southern and eastern Mediterranean and more recently Cyprus and Greece. Cumulative business volume of 116.0 billion as at end of 2016 With an emphasis on working together with the private sector, we invest in projects, engage in policy dialogue and provide technical advice that fosters innovation and builds sustainable and open-market economies. Owned by 67* countries and two inter-governmental institutions (the EU and EIB) Capital base of 30 billion *Libya is yet to become a fully ratified member of the EBRD Note: As at 31 December 2016 15 November, 2017 2
What are the EBRD s objectives? To promote transition to market economies by investing mainly in the private sector To mobilise significant foreign direct investment To support privatisation, restructuring and better municipal services to improve people s lives To encourage environmentally sound and sustainable development
Where we operate Cumulative since inception: Approximately 4,500 Projects Approximately 116 billion EURO Approx. 70% private sector Approx. 30% public sector 4
EBRD Procurement Policies & Rules Key principles: economy efficiency non-discrimination transparency and accountability 2016 procurement facts Public sector contracting 2.6 bn Predominantly works contracts 54% Cross border tendering 97% Open tender (value and number) 3.6 tender per contract
Why MDB procurement rules? The Agreement Establishing the Bank requires completely open procurement (and not procurement open only to members) based on international tendering, where appropriate, and... such tenders should be genuinely competitive, in line with the GATT Agreement on Government Procurement. The transition away from socialist law created years of legal uncertainty and an initial absence of procurement laws. In the 90s all MDB financed contracts were signed applying foreign laws like English, Swedish etc. Many countries in the EBRD region are still, after 25 years, amending their procurement laws several times per year and the legal systems are not considered stable. Shareholders also do want equal treatment for their firms! 6
Examples of MDB concerns with NL National procurement law may look good on paper but: o Local preference schemes hidden in other laws o Politically motivated debarment lists o Mandatory local content requirements o Practices that makes it impossible for foreign contractors to participate or win o Some countries reports good statistics on Open tendering but o Direct contracting not always included in the statistics! Stringent procurement rules was a result of previous experience and criticism of corruption and misuse of funds. Are EBRD countries fairing better now? 7
European Union: 1 (Denmark) to 75 (Bulgaria) EBRD countries of operations: 23 (Estonia) to 156 (Uzbekistan) *out of 176 countries
Fraud and Corruption Prevention and detection The use of Standard Tender Documents Prior review of all key stages Implementation support Restrict direct contracting Restrict negotiations Restrict subjective evaluation criteria (no merit point systems) Open eligibility, no restrictions to participate Third party review of qualification criteria and specifications Independent reviews during and after contract implementation EBRD Procurement complaints mechanism. ---To enable the above we need our own rules---
Brief Overview of on-going Policy Work Memorandum of Understanding (MOU) on Procurement with key countries generate policy dialogue: o Civil Society/NGO Engagement, Construction Sector Reform Programme, Centralised Purchasing body, in Ukraine o Enhancing the complaints system, in Serbia o Capacity building of the Public Procurement Review Body and reforming the Complaint Procedure Mechanism in Bosnia and Herzegovina. OECD / Anti-Corruption Network CIPS Certification of Water Sector in Romania (procurement and transition) Joint Venture Initiatives with the EBRD Legal Transition Team o UNCITRAL (compliance with ML) o WTO/GPA (GPA accession negotiation) o OECD/MAPS Country Assessment Professionalisation 10
EBRD GPA TC Facility How and Where We Work Where we work? Ukraine, since 2011, joined GPA in 2016 Moldova, since 2012, joined GPA in 2016 Armenia since 2014, new text of GPA ratified in 2015 Montenegro, since 2014, joined GPA in 2015 Georgia, since 2012 Tajikistan, since 2014, negotiates final GPA Offer The Kyrgyz Republic, since 2014, negotiates final GPA Offer Azerbaijan, Belarus, Jordan, Kazakhstan and Turkey initiated in 2016 15 November, 2017 11
The Master Class of 2017 12
As in all competition-you can only win, if you participate!! Tack så mycket!