Rail Baltica procurement organisation and regulations KASPARS ROKENS RB RAIL April 25, 2017

Foundations

UNIQUE ROLE OF RB RAIL 04 Governed by intergovernmental declarations/agreements, CEF Financing Agreements, Shareholder’s Agreement, Contracting Scheme 03 02 Responsibility - ensure uniform technical parameters, contracting framework and common tendering guidelines within Rail Baltica 01 Coordinator for purpose of CEF funding In charge of design, construction and marketing of RB Rail

REASONS FOR COMMON RULES Economies of scale 04 Minimised risks Savings Procurement standards and guidelines, qualification requirements, document templates Establish & implement 03 Need 02 Joint center of excellence Solution Common approach 01 Common rules Requirement Complexity

HIERARCHY OF POLICY DOCUMENTS Procurement Standards and Guidelines Scope of application Principles of procurement activities Supplier Code of Conduct Cooperation in Implementation Common interest to have a common approach Contract Templates Minimums Set of Requirements for Suppliers Works / goods / services Legal standing Suitability to pursue professional activity Economic and financial standing Technical and professional ability Quality assurance standards Environmental management standards Application to consortiums Procurement Documentation Templates Mandated by the Agreement on the Contracting Scheme National policies and procedures for Rail Baltica

Procurement Standards & Guidelines

SCOPE OF PROCUREMENT STANDARDS AND GUIDELINES Inform of the framework and main principles of procurement Applies to all procurements and each contracting party Follow the best international market practice Sets out common standards Published & freely available * Actual requirements for a particular procurement are laid down in the procurement documents of the relevant procurement

Contracting Authority’s Code of Conduct

CONTRACTING AUTHORITY CODE OF CONDUCT We are FAIR We are TRANSPARENT Free competition Use of experts Absence of conflicts of interest Legality Transparency Socially and environmentally sustainable procurement Best value for money

Suppliers’ Code of Conduct

SUPPLIERS’ CODE OF CONDUCT ETHICS 03 03 Corruption Conflict of interest Gifts, hospitality Post employment restrictions Selection of business partners ENVIRONMENT 02 LABOUR 01 02 Environmentaly friendly technologies Lifecycle considerations Waste management 01 Equality Wages Health & safety

Minimum Requirements

MINIMUM SET OF REQUIREMENTS FOR SUPPLIERS STEP 03 Enrolment in a professional registry STEP STEP 04 02 TECHNICAL & PROFESSIONAL ABILITY QUALITY STANDARDS Financial turnover & liquidity ECONOMIC & FINANCIAL STANDING STEP STEP 05 Possesion of expertise & experience 01 ENVORONMENTAL STANDARDS LEGAL STANDING & SUITABILITY FOR PROFESSIONAL ACTIVITY ISO 9001:2015 or equivalent ISO 14001:2015 or equivalent NB If the Tenderer is a consorcium, each member of the consorcium shall comply with the below mentioned requirements

MONITORING AND ENFORCEMENT BRIBERY, CORRUPTION, CARTELS Any suspected illegal or suspicious activity should be reported LAWS & REGULATIONS Rail Baltica project will adhere to applicable policies, agreements CENTRAL COORDINATOR IS THE CONTROLLER OF COSTS Financing can be withheld in case of ineligibility AUDITS & VISITS Expect on spot visits. Be cooperative

SUPPLIERS’ DECLARATION Signed by supplier & subsupplier together with tender agreement Avoiding corruption, conflict of interest Compliance with laws & regulations INCREASED AWARENESS OF KEY PRINCIPLES & REQUIREMENTS Acting in an ethical, sustainable & social responsible manner Following good practice in respect of labour, health & safety, environmental protection

Procurement Process

PROCUREMENT SPLIT RB Rail procurement Consolidated procurement Supervised national procurement Studies Design Common Standards Business Development Marketing & Branding Sub-systems (CCS & ENE) Raw Materials and Key Components Cross-border Track Sections Track Construction Major Engineering Structures Local Facilities (including terminals)

RB RAIL PROCUREMENT Activities RB Rail Beneficiaries Global Project design elements: Design Guidelines Consolidated Preliminary Technical Design Master Design Detailed Technical Design Global Project studies: Supplier Market and Resources Study Technical studies Global Project development studies Business development, marketing Procurement organisation Setting common guidelines, templates, requirements Procurement publication Procurement committee: full authority and responsibility Chair of Procurement Committee Procurement Committee Membership: 100% Contract: Sole responsibility and direct relationship with suppliers Control and auditing

CONSOLIDATED PROCUREMENT Activities RB Rail Beneficiaries Global sourcing | proven economies of scale | interoperability Control, command and signalling (CCS) infrastructure (including ERTMS) Energy (ENE) infrastructure (including catenary, substations, management centre) Potential local sourcing | economies of scale Raw materials and key components Construction track and track bed sections Procurement organisation Setting common guidelines, templates, requirements Procurement publication Procurement committee: full authority and responsibility Chair of Procurement Committee Procurement Committee Membership: 50%+1 Contract: Sole responsibility and direct relationship with suppliers Control and auditing Procurement Committee Membership: one representative from each relevant Beneficiary

SUPERVISED NATIONAL PROCUREMENT Activities RB Rail Beneficiaries Track and track bed Major engineering structures (tunnels, bridges) “Point Type” objects, including Detailed Technical Design: Passenger Terminals Freight Terminals Infrastructure maintenance facilities Rolling stock service facilities Setting common guidelines, templates, requirements Members of Procurement Committee (procurements ≥ EUR 40 000) Control and auditing (right to perform technical, financial and legal audits and on-the-spot visits) Procurement Committee Membership: at least one member Procurement organisation Procurement publication Procurement committee: full authority and responsibility Chair of Procurement Committee Procurement Committee Membership: majority Contract: Sole responsibility and direct relationship with suppliers

GLOBAL APPROACH TOWARDS DELIVERING RAIL BALTICA Approach to implementation Phase Exceptions to Approach CONCEPT AND CORRIDOR JOINT NO EXCEPTIONS TIME ALIGNMENT AND APPROVALS NATIONAL NO EXCEPTIONS DESIGN e.g. Consolidated Preliminary Design RB RAIL Design & Build for «local facilities» CONSTRUCTION NATIONAL Component supplies, electrification, CCS/ERTMS, cross-border sections INFRASTRUCTURE MANAGEMENT JOINT To study, define and agree by IM study

COOPERATION IN IMPLEMENTATION OF POLICY DOCUMENTS Cooperation among all involved in this unique project Contracts are governed by the laws of the State where works are done RBR will be informed through its representative in the procurement committees RBR has a right to conduct legal checks and audits Dispute resolution mechanism through dispute resolution committee and arbitration

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