EBRD Procurement Procedures and Opportunities Warsaw – 3 March 2015 GRAEME CLARK Senior Adviser Procurement Policy Department

Where we invest Cumulative since inception 4,188 Projects 95 billion EURO 72%– private sector 28%– public sector

EBRD Procurement Policies DOCUMENT OF THE EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT EBRD FINANCING OF PRIVATE PARTIES TO CONCESSIONS

 Aligned with the Government Procurement Agreement of the World Trade Organisation  Use of efficient procurement methods  No country eligibility limitations or local preferences  Clients are responsible for project implementation and tendering  The Bank monitors all procurement activities  Compliance with the Bank’s Environmental and Social Policies  Prevention and fighting of prohibited practices  EBRD procurement policy does NOT follow the EU Directives  Promote the concept of ‘substantial responsiveness’  Complaints are reviewed by EBRD (Procurement Complaints Committee) EBRD Procurement Principles

 Transportation Rail track maintenance equipment, locomotives, signal systems, trams, buses, air traffic control and navigation equipment, motorway construction, management information systems.  Municipal Infrastructure Waste water treatment plants, pipes, meters, pumping stations, sewage plants, process plants, incinerators.  Power and Energy Efficiency Power transmission lines and substations, distribution control systems, power stations and sub-components, meters, energy efficiency equipment, refurbishment of plants, management information systems.  Information & Communication Technologies Digital switchover equipment. Examples of Goods and Works financed under EBRD Projects

 The Bank financed (totally or partially) 168 contracts with a total value of EUR 1.3 billion (excluding contracts administered by the Bank’s Nuclear Safety Department (NSD)).  Of this EUR 1.3 billion, the Bank financed EUR 896 million – the balance was financed by clients and co-financiers.  The highest value contract (approximately EUR 98 million) related to a contract for the supply and installation of Gas Turbine Units under the Vladivostok Combined Heat and Power Project.  The average contract value was approximately EUR 7.7 million.  The number of contracts was down from 269 contracts in 2013 but the total value is almost identical.  The significant majority of these contracts (92.3% in terms of total contract value) were awarded following the Bank’s Open Tendering procedures.  In addition to the above, the Bank, through its Nuclear Safety Department, administered a further 68 contracts with a total value of EUR million.  In 2014, the Bank received 5 procurement related complaints relating to the above contract awards. General Public Procurement Statistics in 2014

 In the period from 2005 to date, Polish companies have won 69 contracts which EBRD has financed (totally or partially) with a total value of approximately EUR 962,388,463.  The largest of these was a contract won by Siemens Warsaw for the supply of rolling stock for the Warsaw Metro.  The greater majority of these contracts were awarded by Polish clients – very few contracts were won outside of Poland - and the greater majority were in the municipal infrastructure sector.  Year-on-year number of contracts being won by Polish entities has generally been decreasing (i.e., 24 in 2005, 10 in 2006, 10 in 2007, 7 in 2008, 4 in 2009, 2 in 2010, 3 in 2011, 3 in 2012, 5 in 2013, 1 in 2014).  In this same period, Polish companies have unsuccessfully participated in another 72 EBRD financed tenders (i.e. 9 in 2005, 11 in 2006, 11 in 2007, 13 in 2008, 8 in 2009, none in 2010, 9 in 2011, 4 in 2012, 3 in 2013, and 4 in 2014) with a total value of approximately EUR 1,275,000,000 (2 power plant projects in Lithuania account for almost 50% of this figure).  Conclusions: Polish companies are participating in fewer tenders for EBRD financed contracts, winning fewer contracts and missing many opportunities to win contracts financed by EBRD. The Polish Story

Procurement Opportunities in 2015 In Ukraine: Pan-European Road Project (40185) – Road Rehabilitation/Improvements (MO1, MO5 & MO6) Nuclear Power Plant Safety Upgrade Programme (42086) – Modernisation/Replacement Works Lviv District Heating (39300), Zhytomyr District Heating (38147), Ivano-Frankivsk District Heating (39004) & Ternopil District Heating (42524) Ukrhydroenergo Rehabilitation Project (40518) – Supply of Turbines/Generators Rolling Stock Project (37921) – Supply of Railway Wagons In Other Countries: Macedonia: Rail Corridor VIII Project (44175) – Track Rehabilitation Works Kazakhstan: Yereymentau Wind Farm Project (45618) – Construction of a 50 MW Wind Power Plant Kosovo: Transmission Development Project (45552) – 110kV Transmission Lines Belarus: Slonim (41419) and Baranovichi Biogas Projects (41418) – Biogas Plants Croatia: HZ Infrastructure Modernisation Project (44467) – Track Maintenance Equipment Bosnia and Herzegovina: HPP Una Rehabilitation Project (44199) – Rehabilitation of HPP Kyrgyz Republic: Jalalbad Water Rehabilitation Project (40753) – Rehabilitation & Water Meters

 Where to find information on opportunities Check Check national press Contact clients  What to look for Project Summary Documents (PSD) General Procurement Notices (GPN) Invitation for Prequalification or for Tender (IfP & IfT) Invitation for Expression of Interest (EOI) for consulting services  Sign up to receive notices electronically - “Sign up for Updates” – Enter address and select notices. How to Identify Opportunities

Procurement Notices Project Procurement

 Publication of General Procurement Notice (Bank/OJEU/DB & Client)  Preparation of documents, using standard tender documents and contracts  Prequalification for large contracts  Tender notice publication (Bank/OJEU/DB & Client)  Pre-tender meeting  Public tender opening  Evaluation by client  Winning tenderer notified  Contract signed, winning tenderer provides performance security  Unsuccessful tenderers notified of results  Award details published on Bank website Overview of the Bank’s Open Tendering Procedures

 Register on EBRD’s website  Once a suitable tendering opportunity has been identified respond to the General Procurement Notice (GPN)  Look out for the Invitation for Tenders (Invitation to Prequalify, if applicable)  Promptly request and pay for the tender documents  Study the tender documents carefully, if you have questions or queries, promptly seek clarification from the client (if necessary copy the Bank) don’t assume – check!  Familiarise yourself with EBRD’s Procurement Policies and Rules  Consider teaming up with a local partner – especially if a contract involves any contractor design inputs in a country where design is a licenced activity (i.e. Ukraine)  Ensure that you can meet, and demonstrate that you meet, the ‘qualification criteria’ – one of the most common reasons for rejection of tenders (consider forming a joint venture)  Submit a responsive tender – avoid material reservations / deviations / omissions  If unsuccessful, request the client to provide an explanation / debriefing  If you consider that the procurement process has not been carried out in accordance with the tender documents you may complain to the Bank Strategy for Winning Contracts

Overview of Procedures for Consultant Selection Direct Selection (less than EUR 75,000) Selection from Shortlist (EUR 75,000 – EUR 300,000) Evaluation of Proposals (EUR 300,000 and over) Select consultant Negotiations Contract Procurement Notice Expressions of Interest Shortlist Select consultant Negotiations Contract Procurement Notice Expressions of Interest Shortlist Proposal (tech & fin.) Select consultant Negotiations Contract Firms and Individuals Only Firms

Thank You! GRAEME CLARK Senior Adviser EBRD Procurement Policy Department Tel: