OPCPR- 03/26/20081 Procurement Under OP/BP 8.0 This presentation will cover…  Organizational and Institutional Support  Simplified Procurement Arrangements  Fiduciary Safeguards

OPCPR- 03/26/20082 Organizational and Institutional Procurement Support Exceptionally - the Bank executes start-up activities:  In the absence of other alternatives of implementation  Requires an authorization from the Managing Director  Bank involvement will be through GSD  Contracts are financed from a PPF, or a trust fund grant

OPCPR- 03/26/20083 Organizational and Institutional Procurement Support  Regional Vice President (RVP) with the Country Director (CD) decide to establish a Rapid Response Committee (RRC)  Procurement specialists may be delegated higher review authority to task teams  Regional emergency designated procurement staff have been assigned  Additional resources for Bank supervision

OPCPR- 03/26/20084 Organizational and Institutional Procurement Support  Harmonization of procurement procedures, thresholds, review arrangements among donors  Use of pooled funds with common simplified procurement procedures

OPCPR- 03/26/20085 Procurement Agents and Management Contractors  Bank maintains a list PA from which Borrowers can draw from in emergency situations  Borrower has the option to select a firm using CQS  Main criteria for selection may be the timely availability of the key personnel

OPCPR- 03/26/20086 Procurement Agents and Management Contractors  The selection of the PA is carried out in accordance with Para of the Procurement Guidelines or Para of the Consultant Guidelines  Procurement should be carried out in accordance with procurement procedures, Loan Agreement and Procurement Plan  Where large numbers of small contracts- management contractor

OPCPR- 03/26/20087 Simplified Procurement Arrangements Rapid Capacity Assessments  Can be conducted by Bank staff or by any other qualified resource person or entity  The Regional Procurement Manager clears  Template for simplified RPCA is available

OPCPR- 03/26/20088 Simplified Procurement Procedures Single-source selection (SSS)  SSS of consulting firms in accordance with (Para (b) of the Consultant Guidelines)  Only if it presents a clear advantage over competition  Firms that are already working in the country, proven track - may be the most suitable option for the start-up activities  Consultants selected on a single-source basis may be given the right to participate in future assignments

OPCPR- 03/26/20089 Selection of consulting firms through Consultants’ Qualification (CQS) CQS, carried out in accordance with Para. 3.7 of the Consultant Guidelines…. However,  The application is not limited to small assignments (footnote 32 of CG)  Ceiling for the use of higher threshold will be determined by the RPM  Advertising for expressions of interest may be forgone, or limited to the local/ provincial level

OPCPR- 03/26/ Pool of Experts  Support to counterpart agencies at various steps of project execution  Fees may be resolved, at time of pre- selection, and prescribed in a framework agreement – similar in concept to an indefinite Delivery Contracts

OPCPR- 03/26/ Civil Works and Goods Direct Contracting  In accordance with (paras. 3.6 (a) and 3.6 (e) of the Procurement Guidelines  Extend an existing contract to respond to a natural disaster  The price is reasonable and that no advantage could be obtained by further competition

OPCPR- 03/26/ Civil Works and Goods Shopping  In accordance with (para 3.5 of the Procurement Guidelines)  Readily available off-the-shelf goods, standard specification commodities, or simple civil works  Threshold may be set on a case by case basis and cleared by the RPM  At least three price quotations for the purchase of goods, works, or services (other than consulting services)

OPCPR- 03/26/ Use of Positive Lists  A quick-disbursing component designed to finance a positive list of imported or locally produced goods.  Indicators (quantitative or qualitative) to monitor progress during implementation and evaluate outcomes upon completion.  Agreement on the conditions for the release of financial trenches and the documentation and certifications—such as customs and tax certificates or invoices—to be required for locally procured goods.  Would normally follow the national emergency procedures for government procurement, or commercial practices from the private sector if they are acceptable to the Bank.

OPCPR- 03/26/ Procurement of Commodities  Market prices of commodities, such as grain, fertilizer, and fuel, may be used in accordance with Para of the Procurement Guidelines  Customs duties for emergency commodities should be set at reasonable levels  Bank’s approval to finance such commodities may be conditional on the temporary exemption or reduction of customs duties

OPCPR- 03/26/ Civil Works and Goods Pre-qualified suppliers and contractors  Using lists of pre-qualified suppliers and contractors to whom periodic invitations are issued  This approach may be used for a large number of similar simple contracts of any size  Suppliers and contractors would be asked to provide quotations for simple unit prices. Contracts awarded on a competitive basis, may be extended up to two years

OPCPR- 03/26/ Civil Works and Goods  Shorter periods for submission of bids  Bidding periods shorter than 21 days for NCB and 6 weeks for ICB should be cleared with the RPM

OPCPR- 03/26/ Civil Works and Goods Waiving bid and performance security requirements  para of the Guidelines leaves to the borrower the option of requiring a bid security Prior review thresholds  Based on the capacity assessment of the program management entity  Prior review threshold may be set higher than the regional ones  Requires establishing a stringent monitoring and review system  The objective is to minimize the need of declaring as declaring misprocurement, at post-review

OPCPR- 03/26/ How to minimize the fiduciary risks Emergency projects has increased risk of fraud and corruption, (abuse of direct contracting, false delivery certification). Team may consider; Sequenced approach allowing low-risk components and activities to move ahead, while necessary preparation are done for activities that represent higher risks

OPCPR- 03/26/ How to minimize the fiduciary risks  Monitoring/ Procurement Agents to provide fiduciary assurance to the Borrower, the Bank and other donors  Procurement agents that are given the responsibility to handle procurement on the borrower’s behalf  Pre-shipment inspection and/or local independent verification at delivery  Intensified Bank supervision to address and mitigate the increased risks associated with such emergency operations (CO and HQ)