1. European Bank for Reconstruction and Development Kiev, 3 February 2017
Marine Infrastructure Development
This training course is designed to provide EBRD’s Operations Leaders an overview on public procurement and the Procurement Policies & Regulations of the Bank.
The material may be shared with outside Bank audiences as it the Procurement Department of the Bank has sanctioned its content.
The Module is numbered 2 as it follows a short procurement training module 1 developed as a tool to introduce procurement to new hires of the Bank.
The majority of the pictures displayed in this Module are taken from official reports published by the Bank and they have only a decoration purpose. The abundance of female characters in different roles signifies gender equality and equal gender opportunities that the Bank strictly subscribes.
European Bank for Reconstruction and Development
Kiev, 3 February 2017

2. What is EBRD? European Bank for Reconstruction and Development
International financial organisation established in 1991
Capital base – EUR 30 billion
Credit rating of AAA by Standard & Poor's, Moody's
and Fitch
Shareholders of the Bank
Two international organisations and 65 countries
Mission
The Bank promotes transition to market economies in 36 countries from Central Europe to Central Asia with an emphasis on working together with the private sector, we invest in projects, engage in policy dialogue and provide technical advice that fosters innovation and builds sustainable and open-market economies.
The Bank promotes policy dialogue with regards to investment climate, business environment and policy matter. 4

3. EBRD Procurement Policies and Concession Policies
DOCUMENT OF THE EUROPEAN BANK
FOR RECONSTRUCTION AND DEVELOPMENT
EBRD FINANCING
OF PRIVATE PARTIES
TO CONCESSIONS 1

4. Main principles ECONOMIC use of resources
EFFICIENT project implementation
Project results shall be of due QUALITY
NON-DISCRIMINATORY process
TRANSPARENT AND RESPONSIBLE use of public funds

5. Bank’s approach in public procurement
Procurement – an integral part of project risk management
Minimisation of risks – Maximisation of success
Coverage of the entire project cycle
Procurement – part of project delivery strategy
Balanced risk distribution
Use of standard tender documents and
internationally recognised contract terms and conditions
Aim of evaluation – best value for money
Evaluation factors are usually expressed in monetary terms
The key to success – people
Assistance to the clients
Prevention and fighting corruption
Primary focus of the seminar is to equip Bank staff in review of the procurement plan and project implementation arrangements, i.e. the Project Delivery Strategy.
Also useful for clients and consultants designing and preparing a project for Bank consideration.

6. The Client’s role Implement projects in line with agreements
The clients are responsible for all aspects of the procurement of contracts.
They invite, receive and evaluate tenders and awards contracts, which in all cases are concluded between the clients and the suppliers/contractors/consultants.
Since the Client Agency is solely responsible for the procurement under the project financed by EBRD, the Agency will take all steps in the procurement process. Usually the Client agency will appoint staff and consultants in a project coordination or implementation unit to execute the project
For larger contracts, EBRD will carry our prior reviews of the entire process and will issue letters of no objection to each step in the process
For smaller contracts, the Bank will carry out reviews ex post on a sample of contracts. For these smaller contracts, the Agency will go through the whole tendering process without seeking EBRD’s opinion but will use the agreed procedures. If the Bank finds out that agreed procedures were not used, the Bank will refuse financing of the goods or services 6

7. The Bank’s role Advise clients
Assist clients in the course of project implementation
Ensure that the implementation is in line with agreements
Review procurement actions
Review complaints
In private sector - undertake
due diligence and monitor
projects to ensure the best value
for money
EBRD carries out prior review of procurement notices for contracts subject to prior review as stipulated in the PP&R and carries ex post reviews for smaller contracts on a sample basis.
The rules of procurement are known as Procurement Policies & Rules of EBRD and will govern the implementation of procurement activities by the Client Agency for the procurement of goods and services related to the project
Often the agencies carry out procurement in accordance with the national law which in many cases are consistent with the EU Directives on Government Procurement; such rules and procedures might be applied inasmuch that they do not contradict PP&R. 7

8. Review of the dredging contracts procurement practice in Ukraine
Overall observations
Sufficiently complete set of documents reflecting the national public procurement and building regulatory requirements and the business customs of the sector
Areas, which may be enhanced
Qualification of tenderers
Clear and non-restrictive low cost tendering procedure
Fair and balanced contract conditions

9. Qualification criteria
General Experience
Specific Experience
Personnel Capabilities
Equipment Availability
Financial Position
Non-performance and Litigation History
Current Obligations and Pending Awards
JVCA specific requirements
Subcontractors

10. Selection of contract terms and conditions

11. FIDIC Contracts
The International Federation of Consulting Engineers (FIDIC) is an international standards organisation for the construction industry
Fédération Internationale Des Ingénieurs-Conseils
Best known for the FIDIC family of contract templates.
It was established in 1913
The FIDIC founding member countries were Belgium, France and Switzerland
More than 100 members

12. Dredgers Contracts Contract Employer Dredgers Contract
2nd Edition 2016
Blue-Green Book)
Contract
Employer
Contractor
Engineer

13. Roles and Responsibilities: the Employer
Owner of the site
The beneficiary of the Works
Responsible for defining the intended
purpose of the Works and
for setting out the Employer’s Requirements
Enters into a contract agreement with the Contractor
Appoints a Representative/Engineer to oversee the execution of the Works
Has the right to amend the contract
Pay for the Works done
Jointly with the Contractor, appoints a Dispute Board
Takes over the Works, when completed

14. Roles and Responsibilities: the Contractor
Design, as necessary, execute and complete the Works and remedy any defects
Undertake all other responsibilities
Manage staff and labour in accordance
Abide by the laws and bylaws, as well as the instructions of the Engineer
Complete all the Works within the Time for Completion

15. The importance of the Engineer
Role of Engineer crucial
The Engineer acts for the Employer in supervising the activities by the Contractor
The Engineer issues all contractual notices to the Contractor
The Engineer determines any variations
The Engineer issues the Interim Payment Certificates
Review the Contractor’s quality assurance syste
Review the Contractor’s work programme
For this reason care must be taken when reviewing the TOR for the engineers.
They must be suitably experienced in similar works and FIDIC contract.

16. FIDIC CONDITIONS OF CONTRACT FOR DREDGING AND RECLAMATION WORKS
FIDIC Blue-Green Book
FIDIC CONDITIONS OF CONTRACT FOR DREDGING AND RECLAMATION WORKS
General Provisions
Remedying Defects
The Employer
Variations and Claims
The Engineer
Contract Price and Payment
The Contractor
Default
Design
Risk and Responsibility
Defined Risks
Insurance
Time for Completion
Resolution of Disputes
Taking Over

17. Participate to WIN

18. How to contact us Procurement Policy Department
Tel: /Fax:
Procurement opportunities via website:
Project enquiries (existing EBRD projects only)
Tel: /Fax:
Business Development and project proposals
General enquiries
Tel: /Fax:
Publications
Tel: /Fax:

19. Thank you very much!
This training course is designed to provide EBRD’s Operations Leaders an overview on public procurement and the Procurement Policies & Regulations of the Bank.
The material may be shared with outside Bank audiences as it the Procurement Department of the Bank has sanctioned its content.
The Module is numbered 2 as it follows a short procurement training module 1 developed as a tool to introduce procurement to new hires of the Bank.
The majority of the pictures displayed in this Module are taken from official reports published by the Bank and they have only a decoration purpose. The abundance of female characters in different roles signifies gender equality and equal gender opportunities that the Bank strictly subscribes. 19