© European Bank for Reconstruction and Development 2010 | www.ebrd.com European Bank for Reconstruction and Development Jan Jackholt Director Procurement Eight Regional Public Procurement Forum Albania May 2012 © European Bank for Reconstruction and Development 2010 | www.ebrd.com

EBRD Public procurement principles The Bank shares the same basic procurement principles as most IFIs EBRD specifics: Expressively aligned to the principles of the WTO Government Procurement Agreement Eligibility to participate is open to firms from all countries including non-shareholder countries (except countries subject to UN Chapter VII sanctions) Specific rules for sub-sovereign clients Only restriction is capability to fulfil the contract No domestic preference Only internationally recognised contracts can be used Detailed principles for private sector procurement Separate Concession Policy for financing of a private sector party to a concession agreement Note: The Bank’s Procurement Policies and Rules are not based on the EU Directives even though both are aligned to the GPA

EBRD Statistics In 2011 the Bank’s clients signed 272 contracts, which, including amendments to some large Nuclear Safety contracts, represents €2.6bn In 2011 firms from 39 countries won EBRD financed contracts Most contracts signed are for works (includes Supply & Installation contracts), which by its nature requires local participation to provide labour, materials and local expertise such as licences, knowledge of local regulations etc. Over the years firms from the EBRD countries of operations have become more successful not only tendering in their own countries, but also in other countries of operation. Globalisation of business is one of the reasons, nature of contracts is another. A majority of the tenders are procured following the Bank’s Open Tender procedures. More Concession/PPP projects is being financed by EBRD More co-financing with EU Cohesion Funds

Key findings Value Tenderers from the six most successful tendering countries (India, Italy, Kazakhstan, Romania, Russia and Ukraine) won a total of €1 billion worth of contracts Number Tenderers from six most successful tendering countries (Albania, Bosnia and Herzegovina, Italy, Kazakhstan, Romania, Russia) won a total of 121 contracts Share 70 per cent of all tenders were submitted by tenderers from countries of operations. They won 162 contracts worth €968 million

Five year dynamics Public Sector Contracts 669 Total value €7.12 billion EBRD financed €4.54 billion The highest total amount of contract value: Russia €1.62 billion Ukraine €1.18 billion Romania €0.63 billion Kazakhstan €0.61 billion Bosnia and Herzegovina €0.56 billion

Procurement policy dialogue Policy dialogue with the Governments of the Countries of Operations Launch of the Report on Public Procurement Laws and Practice in the EBRD region UNCITRAL and EBRD joint public procurement initiative in CIS countries and Mongolia

Procurement Policy dialogue Federal Antimonopoly Services, Russian Federation Signing 2010 Ministry of Economic Development, Ukraine Signing 2011 4

Country procurement framework assessment and dialogue The first ever EBRD public procurement sector assessment (including remedies procedures) was conducted in 2010 as part of the EBRD efforts to promote sound business practices in its countries of operations. The assessment of the public procurement sector, in line with the mission of the EBRD, intends to address efficiency and economy of procurement and offer more insight into public procurement laws and practice in the EBRD countries of operations Forged EBRD cooperation with OECD SIGMA, OSCE, UN, EU and IFIs operating in the EBRD region Developed by the Procurement Department and the Bank’s Legal Transition Team Public Procurement officials from 13 EBRD countries at the launch of the report in St. Petersburg September 2011

EBRD – UNCITRAL Initiative The EBRD - UNCITRAL initiative is aimed at enhancing Public procurement regulation in the CIS countries and Mongolia in cooperation with OSCE and OECD SIGMA It is a Technical Cooperation programme designed to promote 2011 UNCITRAL Public Procurement Model Law and encourage the upgrading of public procurement regulation in countries committed to improvements

EBRD and e-Procurement Due to the nature of Bank financed projects EBRD has so far not engaged itself with e-Procurement issues Many countries in the EBRD region are clearly getting quite advanced in the use of e-Procurement Decision by some countries to make e-Procurement mandatory for all types of procurement may affect EBRD sub-sovereign projects Current EBRD concerns: e-Procurement should not be considered as a one-off solution against prohibited practices e-Procurement should be seen as one of the procurement tools and should in itself allow for various procurement methods. The use of reversed action for all procurement is not good practise Absence of contract implementation data may “skew” the real situation Poorly planned procurement will not be solved by the use of e-Procurement. Capacity building and professionalism in procurement will always be the key factor. 28/11/2018

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