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

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

3. Introduction to the World Bank

4. 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

5. 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 for details 5

6. 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

7. 2004 IBRD Lending by Region 7

8. World Bank Procurements

9. 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

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

11. 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

12. 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

13. 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

14. 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

15. 15

16. 16

17. Procurement Process 17

18. 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

19. Anti-corruption Hotline
If you suspect corruption on a procurement lodge a complaint at the Bank’s Anti-corruption hotline: 19

20. ITS Procurements on World Bank Projects in China

21. 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

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

23. Example of Control Centre23

24. 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

25. 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

26. 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

27. 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