Business Opportunities IDB Financing in Latin America and The Caribbean September 2014
Public Procurement in Latin America and The Caribbean LAC Public Procurement Market US$ 800 billions US$ 560 b 70% of amount of business opportunities is published in the Internet
IDB Business Opportunities: Overview by Region Each year, the IDB finances about US$ 10b in new operations Distribution by Region Southern Cone 51% Andean Countries 18% CID* 24% Caribbean 4% Haiti 3% *Central American, Isthmus and Dominican Republic 3
IDB financed contracts: Key Figures Each year, IDB-financed operations generate 25,000 to 35,000 contracts, worth US$ 3-4 billion Consulting represents about 26,000 contracts, worth US$ 1 billion Contracts Value Goods and Works represent about 4,000 contracts, worth US$ 3 billion Information based on contract award statistics and procurement plan estimations 4
IDB financed projects: Overview by Sector Active Portfolio: 77 projects, worth $ 10.6 billion Pipeline: 12 projects, worth $ 1.6 billion Transportation Active Portfolio: 82 projects, worth $ 7.9 billion Pipeline: 11 projects, worth $ 1.7 billion Water and Sanitation Active Portfolio: 88 projects, worth $ 7.1 billion Pipeline: 14 projects, worth $ 1.1 billion Social, Health and Education Active Portfolio: 40 projects, worth $ 4.1 billion Pipeline: 9 projects, worth $ 0.7 billion Energy Active Portfolio Projects Worth (US$b) Active Portfolio: 144 projects, worth $ 5.9 billion Pipeline: 26 projects, worth $ 1.4 billion Agriculture and rural development 40 1.9 Urban development and housing 54 2.9 Environment and Natural Disasters 29 1.0 More Reform/Modernization of State 5
Project Life Cycle and Resources Online Programing Preparation Approval Execution and Supervision COUNTRY STRATEGY PROJECT DOCUMENTS SPECIFIC PROCUREMENT NOTICES OPERATIONAL PROGRAM PROJECT PIPELINE PROCUREMENT PLAN AWARDED CONTRACT NOTICES 3-6 months 4-8 years Visit the web pages linked to the document titles indicated above 6
Resources Online DOCUMENT PERIOD CONTENT Country Strategy For 4 5 years Long-term sector priorities Operational Program Annual Lending portfolio per country Project Documents Project cycle Project profile Procurement Plans Updated annually from project approval Description of items to be procured General Procurement Notice Once, after project approval Relevant contracts Specific Procurement Notice From publication date to date of deadline Invitation for specific contract opportunity
IDB Financing in Latin America and The Caribbean PROJECT PROCUREMENT POLICIES
Roles & Responsibilities related to Procurement Borrower / Executing Agency execute operations and is responsible for: IDB finances project and oversees compliance Planning Evaluation Contract Award Contract Administration IDB Procurement Policies Agreement for validated country system Bidding Documents Contract IDB has NO contractual relationship with business community Business Community screens and identifies opportunities, submits proposal, signs contracts with Borrower and executes the contract 9
Procurement Policies Policy for the Use of Country Procurement Systems Policies for the Procurement of Goods and Works Financed by the Inter-American Development Bank Policies for the Selection and Contracting of Consultants Financed by the Inter- American Development Bank Principles: Economy Efficiency Transparency Competition Equal opportunity Eligibility: Open to firms registered in and origin of goods from IDB member countries Policies Web page 10
Resources & online information www.iadb.org/projects for Country Strategies, Programmed Pipeline and Project Information www.iadb.org/procurement for Specific Information: Procurement Plans Specific Procurement and Award Notices Procurement Policies Standard Bidding Documents Information on Contracts Awarded Table with validated Information Systems RSS Notifications IDB Business App Business Opportunities, projects, sectors, countries www.devbusiness.com (UN Development Business online) for Advertising of international procurement 11
Key success factors Have a long-term perspective Be systematic in screening information Be strategic and persistent: To assess Market To assess Competition To select Objectives Visit the Region or the country of your interest Contact the executing agency if you have questions Make connections with potential associates Understand the legal nuances for foreign firms (visas, taxes, registration if awarded) Learn about the country s business culture Approach your Embassy or commercial office in Borrowing country to find out firms from your country established locally 12
IDB Financing in Latin America and The Caribbean ILLUSTRATIVE PROJECTS
Costa Rica - Cantonal Road Network Program The program finances a process for improving the connectivity, mobility and accessibility to the Cantonal Road Network, benefiting the population with better quality of life, and the institutional strengthening of Municipal Governments in the rehabilitation and routine road maintenance management based on a sustainable system. IDB contribution: US$ 60 Million Total estimated investment: US$ 75 Million Total (US$M) Engineering and Administration 10.1 Civil Works 57.0 Support for strengthening capacity and management 7.9 Link to the project 14
Nicaragua - National Program for Sustainable Electrification and Renewable Energy (PNESER) The program finances new electricity service connections, normalizes existing ones, and supports the construction of 214 kilometers of transmission lines that carry renewable energy sources IDB Contribution: US$ 31 Million Estimated Total Investment: US$ 31.1 Million Engineering, supervision, and administration Total (US$M) 1 Civil works 30.1 Link to project 15
Ecuador Environmental Sanitation Program Phase II The purpose of phase two of this program is to enable Metropolitan Quito Enterprise (EMAAP-Q) provide residents with efficient and sustainable long-term water, sewer and flood control services. It includes rehabilitation works and reduction of damaged urban infrastructure and housing caused by torrential rain in Quito s Central-South zone. IDB Contribution: US$ 70 Million Estimated total investment: US$112.7 Million IDB (US$M) Engineering and supervision 10.8 Civil works 73.9 Institutional strengthening 3.3 Link to project 16
Jamaica - Public Sector Efficiency Program The program finances investments in public sector Human Resources capacity building, Information and Communications Technologies Management and control systems in order to increase efficiency through the introduction of new governance modalities and implementation of new structures, systems and processes. Currently IDB Contribution: US$ 14 Million EC* Contribution: US$ 6.6 Million Total Investment: US$ 31.6 Million Future Human Resources Management goods and services Total (US$M) 18.6 ICT Management goods and services 4.6 Consulting services in strengthening control and accountability 5.9 Link to project * Country of origin of the goods, nationality of the suppliers, contractors and service providers must be recognized as eligible for the European Community (EC) under its applicable regulations. 17
Brazil - Paraná Seguro Program Currently This program will finance contracts for strengthening Police efficacy in preventing urban crime, prevention, rehabilitation and support for social reintegration of youths, the rehabilitation or construction of youth centers and their equipment, and the creation of a social network for family protection in order to reduce the crime indexes in several municipalities in the State of Paraná. Future IDB Contribution: US$ 67.2 Million Estimated Total Investment: US$ 112 Million Total (US$M) Equipment and other goods 5.3 Civil works 46.4 Professional training, youth job training, strengthening of social network 1.5 Administration, Monitoring and Evaluation 0.8 Link to project 18
Paraguay Water and Sanitation Program for Rural and Indigenous Communities (PAySRI) The project finances the extension of the the coverage of water and basic sanitation systems in rural and indigenous communities without such services, so that families without these services may get them, thereby improve their quality of life. The project, as well as rural water and sanitation systems that already exist, will receive technical assistance for operation and maintenance from associations of water committees created with support from previous Bank operations. IDB Contribution: US$ 12 Million Spanish Fund for Water and Sanitation (SFW): US$ 40 Million Estimated Total Investment: US$ 60 Million Link to project Engineering and management Total (US$M) 9.65 Water and sanitation systems 32 Solid waste pilot program 1.5 Institutional strengthening 3.0 19