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Gilles R. Garcia Manager, Enterprise Outreach Services The World Bank Group Bilbao, Spain October 1, 2013 How to be strategic when bidding on WB financed projects
Gilles R. Garcia
Manager, Enterprise Outreach Services
The World Bank Group
Bilbao, Spain
October 1, 2013
How to be strategic when bidding on
WB financed projects
• The Transactions Bank
• to open new markets to
exporters and investors
• The Knowledge/ Solutions Bank
• to facilitate business access to
growing markets
The World Bank Group: 2 Banks in 1…
�Ending Extreme Poverty by 2030
�Promoting Shared Prosperity
… to reach our two overarching objectives:
The World Bank Group : A Transaction Bank
with 2 main doors
For a Total Commitment of $52,6 B in 2013
For Exporters For Investors
• $31,5 B (60%) of WB lending in
2013 turned into $25B worth of
procurement opportunities
• $18,3B (35%) of IFC co-
financing
• $2,7B (5%) of MIGA guarantees
against Political Risks
$ 25 B procurement opportunities on WB financed
contracts, $ 100 B on aid funded business
… and $ 4 500 B of public procurement in developing
countries (15% of GDP)
World
Bank
UN
EU
BilateralsOther
Development
Banks
Banks Development
Agencies
• Regular flow of 100,000 WB financed contracts worth $25 billion
per year in all categories (CW,G,C), sectors (Hard to soft) and
size(from $10 000 to $600M),
• 10,000 contracts prior reviewed (10%) worth $12.7 billion (50%),
• 77 % contracts are ICB, 10 % contracts are NCB,
• 70 % of contracts awarded to local companies,
• « Best practice » projects
• 220 WB staff involved in procurement , the Bank is a referee for
companies who are sure to get paid,
• The large majority of bidders are SME’s.
World Bank $25B procurement contracts …
…to access $ 4 500 B public procurement contracts
In FY 2013, Spain #1 on WB Prior Review Contracts
Data as of September 2013
Spain #2 on WB Prior Review Contracts FY 2007-2013
Overall Result
Data as of September 2013
0
200
400
600
800
1.000
0,00%
2,00%
4,00%
6,00%
8,00%
2007 2008 2009 2010 2011 2012 2013
Mil
lon
es
% o
f to
tal
pri
or
rev
iew
con
tra
ct a
wa
rds
Spain Prior Review Contract Awards FY07-13
(data as of Sept. 2013)
Amount (USD) % of total amount % of total contracts
A Regular increase since 2010
• In FY 2008-2013, Spain was awarded some 324 Prior Reviewed Contracts,
worth close to $2 760 M
• Spanish performance estimates are at some 3000 contracts,
worth over $5 500 M
50% of Spanish Prior Review Contracts awarded in LAC,
primarily in Brazil, Mexico, and Colombia
Infrastructures represent 96% of Spanish
Prior Review Contracts FY 2008-2013
Spain #2 on Transportation Sector on Prior Review Contracts FY 2008-2013
Data as of September 2013
Spain #1 in Energy & Mining on Prior Review Contracts FY 2008-2013
Data as of September 2013
Spain #1 in Water Sector on Prior Review Contracts FY 2008-2013
Data as of September 2013
• CAF Construcciones y Auxiliar, $358M, Transportation (Goods), Brazil
• Dragados, $288M, Water (Civil Works), Poland
• Corsan-Corviam Construccion, $212M, Transportation (Civil Works), Brazil
• Isolux Ingenieria, 165M, Energy & Mining (Goods), Bangladesh
• Aldesa Constructions, $86M, Transportation (Civil Works), India
• Carija, $18M, Transportation (Civil Works), Mauritania
• Iberdrola Renovables, $10M, Energy & Mining (Goods), Mexico
• Groupement Lopesan/ Volconsa, $5.6M, Transportation (Civil Works), Senegal
• Typsa, $2M, Public admin & law (Consultant Services), Peru
• Abarloa2, $260,500, Agriculture (Consultant Services), Tunisia
• Adasa Sistemas, $211,500, Agriculture (Goods), Morocco
• Epypsa, $238,000, Transportation (Consultant Services), Colombia
• International Indemar Fisheries, $93,000, Agriculture (Consultant Services), Ghana
Average Contract: $8.5M, Median one: $500,000
For Spanish companies in 2008-2013
• A.V.U., $391,000, Industry and trade
(Consultant Services) in Brazil
• IDOM, $480,000, Industry and trade
(Consultant Services) in Brazil
• ITAC, $600,000, Water (Consultant Services) in
the Philippines
• Sener, $9.9M, Transportation (Consultant
Services) in Colombia
Prior Review Contracts 2008-2013 awarded
To “participating” Basque companies
The World Bank has NO contractual relationship
with companies
World Bank
CompaniesGovernment
PMU
• Procurement Rules
• Information
Dissemination
• Complaints
• Contractual Relation
• Project Implementation
• Country Assistance
Strategy (CAS)
• Contractual Relation
Country Assistance Strategy
Country Assistance Strategy
IdentificationIdentification
Preparation, Appraisal and
Board Approval
Preparation, Appraisal and
Board Approval
Implementation and SupervisionImplementation and Supervision
Implementation and CompletionImplementation and Completion
EvaluationEvaluation
World Bank Project Life Cycle
http://go.worldbank.org/GI967K75D0
The Key Issue is to address the Real Issues …
… in each phase of the Project Life Cycle
• Systematic Web
based Screening
• Strategic Selection
• Field Focus
• Local Partnership
• Clarity of Bidding
Documents
• Be responsive
• Ask questions to the
right people
Business
Opportunities
Identification
• Payments
� PMU/CM/CD/
TTL/ RPA
• Corruption
� INT
Bid Preparation Project Implementation
The Real Strategic
Challenge
Mapping of the key
actors critical
Timing & Details
Critical
Two Sets of Procurement Guidelines
http://go.worldbank.org/U9IPSLUDC0 http://go.worldbank.org/1KKD1KNT40
For Consultants For Goods & Works
Procurement Policy Review
http://web.worldbank.org/WBSITE/EXTERNAL/PROJECTS/PROCUREMENT/0,,contentMDK:
23226925~pagePK:84271~piPK:84287~theSitePK:84266,00.html
� Contact the Task Team Leader
� Copy the Country Director for the borrowing country
� Copy the Regional Procurement Manager
� All names and contact information are available in the Project Information Document (PID)
Mapping of the Key WB Actors Critical…
Consultant Guidelines, Page 47 – Appendix 3: Guidance to Consultants
70 % of contracts awarded to local companies
http://go.worldbank.org/BY6HRBV4E0
Access detailed information on prior reviewed contracts awarded,
including:
• Operational region
• Client country
• Sector
(For 105 Countries with PSLO network representation)
• Type of contract
• Supplier name
• Contract amount
http://www.worldbank.org/
www.worldbank.org/projects
www.maps.worldbank.org
http://go.worldbank.org/YLPQAHBY40
15 Projects in the Pipeline in LAC in Infrastructures,
worth over $ 1.6 B
http://go.worldbank.org/KTPE1WKU20
Accessing Procurement Notices
2 critical steps & sets of documents to track:
• Monthly Operational Summary (MOS)
http://go.worldbank.org/OG8CL2BD20
• PID/ PAD: Project Information Document and
Project Appraisal Document
http://documents.worldbank.org
From the Country Assistance/Partnership Strategy…
… to submitting your bidding documents
1. To work on WB-financed projects
2. To work for the WB as consultants
https://wbgeconsult2.worldbank.org/
3. To work for the PMU to prepare the projects
Consultants Have 3 Options
Option 1, 10 times bigger than Option 2
• World Bank General Website: � Search by Countries and Topics or by Projects & Operations
� http://www.worldbank.org/
• Advanced Search for Projects� http://go.worldbank.org/YLPQAHBY40
• Procurement Guidelines� http://go.worldbank.org/1KKD1KNT40
• Procurement Notices� http://go.worldbank.org/YLPQAHBY40
• Procurement Awards and Summary Reports� http://go.worldbank.org/BY6HRBV4E0
• Monthly Operational Summary� http://go.worldbank.org/OG8CL2BD20
Electronic Resources
