The Bank s Procurement Framework
Outline 1. Introduction to the AfDB Group 2. Bank-financed contracts data 3. Procurement relationships, methods and safeguards 4. Information on Business Opportunities 2
1. Introduction to the AfDB Group
The African Development Bank Group AfDB Group In Brief Our Clients African Development Bank African Development Fund Nigeria Trust Fund Founded 1964 54 RMCs 27 Non RMCs Capital=USD 95 billion Middle-Income Countries Low-Income Countries Post-Conflict & Fragile Situations 4
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
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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
The Ten Year Bank Strategy 2016-2025 Light up & Power Africa +162 GW electricity generated + 130 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
The Ten Year Bank Strategy 2016-2025 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
Our Projects Multi-sector 16% Environment 0% Agriculture 12% Social 10% Finance 13% Industry & Mining 4% Infrastructure 45% Total Cumulative Approvals (1967-2016) amounts to 131 billion USD
2. Bank-Financed Contracts Data
Size of Operations Billion USD 3.00 Value Number 3,000 2.50 2,500 2.00 2,000 1.50 1,500 1.00 1,000 0.50 500 0.00 2012 2013 2014 2015 2016-12
Distribution of Contracts By Value (Million USD) Goods Works Services 1,960 1,856 1,841 1,541 1,460 496 635 397 150 195 198 144 283 261 287 2012 2013 2014 2015 2016 13
Distribution of Contracts By Number Goods Works Services 976 1,022 881 976 858 1,004 921 546 519 687 601 645 638 528 595 2012 2013 2014 2015 2016 14
AfDB Group Funded Projects in Kenya Sectors 2012 2013 2014 2015 2016 2017 (Value in UA Million) Nb Value Nb Value Nb Value Nb Value Nb Value Nb Value Agriculture 43 3.99 22 2.55 28 6.10 61 4.68 25 3.44 4 3.84 Communications - - - - - - - - - - - - Environment - - 1 1.33 6 0.21 5 0.49 8 0.52 - - Finance - - - - 1 0.52 2 0.15 - - - - Ind/Mini/Quar - - - - - - - - - - - - Multi-Sector 1 1.11 2 0.13 - - 3 0.13 4 0.35 - - Power - - 1 0.30 - - 7 38.25 1 3.84 2 2.78 Social 271 19.57 88 24.37 45 7.05 10 6.75 37 14.13 1 0.35 Transport 1 2.28 5 2.12 2 0.37 5 0.91 9 4.59 - - Water Sup/Sanit 33 60.87 37 13.29 7 7.64 7 1.74 14 2.84 - - Total 349 87.82 156 44.09 89 21.89 100 53.10 98 29.70 7 6.97 http://www.afdb.org/en/projects-and-operations/procurement/tools-reports/procurement-statistics/ 15
Contracts won by Kenyan Firms (2012-2016) Expenses Categories Contracts Awarded By Number 2012 2013 2014 2015 2016 GOODS 72 64 26 30 46 WORKS 262 77 46 51 24 SERVICES 15 15 17 19 28 Total 349 156 89 100 98 By Value (UA Million) 2012 2013 2014 2015 2016 GOODS 13.96 23.63 5.59 3.83 12.62 WORKS 69.41 16.87 14.83 46.71 1.43 SERVICES 4.45 3.60 1.47 2.55 15.66 Total 87.82 44.09 21.89 53.10 29.70 http://www.afdb.org/en/projects-and-operations/procurement/tools-reports/procurement-statistics/ 16
Contracts Awarded to Kenyan Firms 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176 177 178 179 180 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 197 198 199 200 201 202 203 204 205 206 207 208 209 210 211 212 213 214 215 216 217 218 219 220 221 222 223 224 225 226 227 228 229 230 231 232 233 234 235 236 237 238 239 240 241 242 243 244 245 246 247 248 249 250 251 252 253 254 255 256 257 258 259 260 261 262 263 264 265 266 267 268 269 270 271 272 273 274 275 276 277 278 279 280 281 282 283 284 285 286 287 288 289 290 291 292 293 294 295 296 297 298 299 300 301 302 303 304 305 306 307 308 309 310 311 312 313 314 315 316 317 318 319 320 321 322 323 324 325 326 327 328 329 330 331 332 333 334 335 336 337 338 339 340 341 342 343 344 345 346 347 348 349 350 351 352 353 354 355 356 357 358 359 360 361 362 363 364 365 366 367 10 11 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99-123456789 Awarded Contracts 349 156 89 100 98 7 2012 2013 2014 2015 2016 2017 Contracts Awarded in Number 100.00 80.00 60.00 40.00 20.00-20.00% 15.00% 10.00% 5.00% Share in AfDB Overall Contracts Awarded - 2012 2013 2014 2015 2016 2017 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 http://www.afdb.org/en/projects-and-operations/procurement/tools-reports/procurement-statistics/ 17
Kenyan presence should be improved Share in AfDB Overall Contracts Awarded 2012 2013 2014 2015 2016 By Number 17% 7% 4% 4% 4% By Value (UA Million) 6% 2% 2% 3% 2% 18
3. Procurement relationships, methods and safeguards
Procurement Relationships AfDB Financing Agreement Borrowers Payment & Dialogue with Industries Complaints Contractors Suppliers Consultants Bank s Right to Audit
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
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
The Procurement Framework Policy Methodology Board Approval Operations Procurement Manual Procurement Toolkit Management Approval 23
Procurement Principles Economy Efficiency Equity Effectiveness 24
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
Main Features of the Bank s Procurement Framework Beneficial ownership Development of national industries Fragile situations Co-financing Contract monitoring 26
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
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
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
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
4. Information on Business Opportunities
Important General Information Project information: http://www.afdb.org/en/projects-and-operations/project-portfolio/ AfDB Procurement Policy and Procedures: http://www.afdb.org/en/projects-and-operations/procurement/new-procurementpolicy/ AfDB Standard Bidding Documents: http://www.afdb.org/en/projects-and-operations/procurement/resources-forborrowers/standard-bidding-documents/ ADF / ADB eligibility rule 32
Specific Information General Procurement Notice (GPN): Specific Procurement Notice (SPN): http://www.afdb.org/en/projects-and-operations/procurement/resourcesfor-businesses/general-procurement-notices-gpns/ http://www.afdb.org/en/projects-and-operations/procurement/resourcesfor-businesses/specific-procurement-notices-spns/ UNDB journal / AfDB website 33
Projects & Operations Resources for Businesses www.afdb.org
Projects & Operations E-Consultant www.afdb.org
Procurement Statistics Link for Bank statistics on procurement: http://www.afdb.org/en /projects-andoperations/procureme nt/toolsreports/procurementstatistics/ 36
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
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
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