Supplying ITS Equipment to World Bank Projects Christopher R Bennett Senior Transport Specialist China Transport Group The World Bank Washington, D.C.

Overview Introduction to the World Bank World Bank Procurements ITS Procurements on World Bank Projects in China 2

Introduction to the World Bank

The World Bank Source of financial and technical assistance to developing countries Two institutions International Bank for Reconstruction and Development (IBRD) Low-cost loans to middle income countries International Development Association (IDA) Concession loans and grants to poorest countries 4

Our Mission ‘A World Free of Poverty’ 10,000+ staff work in over 100 countries We are: The world’s largest funder of education The world’s largest funder of HIV/AIDS Leading fight against corruption Supporting infrastructure development Water Power Transportation Visit www.worldbank.org for details 5

Transportation Projects Mission: Reduce poverty by improving efficiency and extent of road network Activities include: Expressways and Highways Urban Transport Rural and village roads Waterways, rail, air and other modes About 20% of World Bank lending 6

2004 IBRD Lending by Region 7

World Bank Procurements

Procurement The Bank does not procure Bank finances procurement Procurement is done by clients who: Prepare specifications Publish bid documents Arrange procurement Pay suppliers Bank’s role is to ensure that the loan proceeds are used for purpose for which loan was granted 9

Procurement Relationships LOAN/CREDIT/GRANT AGREEMENT WORLD BANK IMPLEMENTING AGENCY (Borrowing Country Government) SUPPLIER/ CONTRACTOR/ CONSULTANT PREQUALIFICATION/BIDDING DOCUMENTS/REQUEST FOR PROPOSALS/CONTRACTS 10

Borrowers Must Follow Bank Guidelines Bank publishes: Procurement guides which give policies Standard bidding documents Bank requires: Economy and efficiency in procurement Equal opportunities to all bidders Transparency in procurement process 11

World Bank Procurements Depending on the size of procurement, different approaches are used: International Competitive Bidding Preferred method Used with larger procurements Limited International Bidding Not common Used when only a small number of suppliers National Competitive Bidding Smaller contracts When foreign bidders are not expected to participate Shopping Small contracts Must get prices from three suppliers 12

International Competitive Bidding International advertising Use of English, French or Spanish Public bid opening Use of Standard Bidding Documents Contract awarded to lowest priced “responsive bid” Meets technical requirements Documentation is prepared correctly and submitted on time 13

Procurement Process There must be advertising for ICB and NCB with sufficient time to respond Often have prequalification for large contracts General Procurement Notice advertises general details of project Specific Procurement Notice gives details on specific procurements 14

www.worldbank.org 15

www.dgmarket.com 16

Procurement Process 17

If You Want To Win … Read everything you can Make contacts in the country Identify local partners Respect local customs Submit bids in time. Bids that are even one minute late will be rejected Assess the competition. Compete where YOU are competitive Solve the client’s problem. Don’t impose your view 18

Anti-corruption Hotline If you suspect corruption on a procurement lodge a complaint at the Bank’s Anti-corruption hotline: +1-800-831-0463 19

ITS Procurements on World Bank Projects in China

China Portfolio Bank is undertaking urban and highway projects in China About $US 400 – 800 million a year Only a few % of total projects in China Most projects are not Bank financed Levels of Bank financing will decrease over time 21

ITS on Bank Projects Expressways Toll collection systems Communication systems Traffic monitoring systems Variable message signs Weigh-in-motion Weather detection Tunnel safety 22

Example of Control Centre 23

ITS on Bank Projects … Urban Transport Projects Advanced vehicle location systems for buses Integrated card system for public transport fare collection Area wide traffic control 24

The Practical Reality Most ITS equipment is procured as part of large ‘Electrical and Mechanical’ (E&M) contracts Difficult to participate without Chinese representatives Need to have good support/service arrangements 25

The Future Expressways Urban Areas China has built 35,000 km of expressways in the last 15 years Planning on an 80,000 km network Urban Areas Currently have 10 cities piloting a range ITS implementations Many opportunities to supply ITS technology in future, although China will develop its home grown industries 26

Closing Suggestion There are many opportunities in China, but it must be approached prudently Read the book: ‘Mr. China … A Wall Street banker, an Englishman, an ex-Red Guard and $418 million disappearing day-by-day’ 27