Consultant Opportunities with the EBRD Mr Andrea Baldan Head of - - PowerPoint PPT Presentation

Consultant Opportunities with the EBRD

Thursday 17th March, 2011

NL EVD Internationaal Mr Martin Ehrenberg

Senior Advisor Consultancy Services Unit

Mr Andrea Baldan

Head of CSU, Operations

6 things you need to know…

…in order to be successful in providing consultancy services to the EBRD: 5 “W”s

1.

“Why” does EBRD need consultancy services

2.

“Where” does EBRD operate and are services needed

3.

“When” are consultancy services needed

4.

“What” kind of consultancy services are needed

5.

“Who” are the key players in EBRD and their roles (and “whom” are you offering your services to) …and 1 “H”

1.

“How” does EBRD select consultants (incl eSelection)

• 1. why?
• 1. why?

EBRD finances projects in both private and

public sector, providing direct funding for financial institutions, infrastructure and other key sectors.

The Bank’s investments also help to develop

skills, improve efficiency and strengthen institutions.

Within this framework consultancy services are

provided to support the Bank’s operations and projects.

“why” does the Bank need Consultancy Services: Bank’s operations

“why” should you be interested: Consultancy Contract Awards* in 2006-2010

Value in € of all Consultancy Contracts awarded

• 20,000,000

40,000,000 60,000,000 80,000,000 100,000,000 120,000,000 140,000,000 160,000,000 2006 2007 2008 2009 2010

(918) (1.063) (1.100) (1.409) (1.565)

(and number of Contracts awarded) trend

* CSU contracts only

Value in € of Consultancy Contracts awarded to Dutch firms

• 500,000

1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000 4,500,000 5,000,000 2006 2007 2008 2009 2010

“why” should you be interested (2): Contract Awards* to Dutch firms in 2006-2010

(17) (30) (36) (34) (29)

4% 3% 4% 4% 2% (and number of Contracts awarded) (and % on EBRD total value) trend

* CSU contracts only

• 2. where?
• 2. where?

“where”: 36 offices in 30 countries

more than half bankers based in the regions

“where”: 2010 Contract Awards* by Country of Operation (share of value)

Ukraine, 13% Regional, 12% Tajikistan, 6% Bulgaria, 5% Kyrgyz Republic, 4% Armenia, 4% Kazakhstan, 3% Georgia, 3% Turkey, 3% Romania, 3% Belarus, 3% Slovenia, 0% Latvia, 0% Hungary, 0% Slovak Republic, 1% Montenegro, 1% Albania, 1% Turkmenistan, 1% Mongolia, 1% Poland, 2% Croatia, 2% Serbia, 2% FYR Macedonia, 2% Azerbaijan, 2% Bosnia Herzegovina, 2% Moldova, 3% (…) Other, 21% Russian Federation, 9% UK**, 10%

* CSU contracts only ** Headquarters’ related contracts

“where”: 2010 Contract Awards by Country of Operation to Dutch consultants (share of value)

Kosovo, 1% Azerbaijan, 1% Bulgaria, 1% Montenegro, 1% Turkmenistan, 0% Other, 4% UA, 2% CRO 2% Kazakhstan 6% Slovak Republic 7% UK 9% Hungary, 12% Regional, 13% Bosnia and Herzegovina, 26% Russian Federation 19%

* CSU contracts only

1% 0% 8,550 Turkmenistan 2% 1% 24,950 Montenegro 0.4% 1% 28,150 Bulgaria 1% 1% 30,090 Azerbaijan 9% 1% 36,357 Kosovo 0.3% 2% 62,840 Ukraine 3% 2% 66,150 Croatia 4% 6% 179,795 Kazakhstan 25% 7% 200,000 Slovak Republic 2% 9% 262,627 United Kingdom 75% 12% 338,002 Hungary 2% 13% 391,652 Regional 4% 19% 552,580 Russian Federation 30% 25% 724,000 Bosnia and Herzegovina % of EBR D Total % of total value Value, €

• 3. when?
• 3. when?

“when” are Consultancy Services needed

Understand the Bank’s project lifecycle to know:

When does the consulting opportunity arises

(concept, pre-signing, post-signing?)

What kind of consultancy services are needed

(project preparation or project implementation?)

Whom to market the services to (Bank or Clients?)

Project Project Preparation Preparation Consultancy Consultancy Services Services Project Implementation Project Implementation Consultancy Services Consultancy Services

“when”: Consultancy Services and project cycle

Initiation Final repayment

Concept clearance Concept/ structure review Final review

Signing Disbursements Repayments [Sale of equity] Final maturity

Board approval

Publication of Project Summary Document Publication of Board approved Projects

• 4. what?
• 4. what?

“what” kind of consultancy services does the Bank need

Consultancy Services type: project

preparation and project implementation

Funding sources: TC, Bank Budget

and loan proceeds

Business sectors

“what”: type of Consultancy Services

To assist the Bank’s Clients with:

• Project Preparation e.g. feasibility studies, project design,

environmental impact assessment

• Project Implementation:

– capacity building, institutional development, eg. project implementation units – role of a partner – project supervision: Independent Engineer – very clearly defined contractual role

To assist the Bank with:

• due diligence (technical, financial, environmental, integrity etc)
• project monitoring, lenders technical supervisor

Technical Co-operation Funds from:

– Dutch Technical Cooperation Funds (tied and untied) – Shareholders’ Special Fund established with the Bank’s net income, operational since July 2008 – Other untied Donor funds (e.g. Japan, Sweden, Norway, Multi Donor Fund for Early Transition Countries, European Union), Western Balkans Fund

Bank Administrative Budget Loan Proceeds

“what”: funding sources available to Dutch Consultants

Focus on:

• Initiatives to address economic crisis in the EBRD’s countries of
• perations, e.g. FI Institution Building and Targeted Crisis

Response Framework Facilities, Trade Facilitation Programme Crisis Response Training programmes, Risk Management Advice

• Sustainable energy financing facilities incl. renewable energy
• Infrastructure including Municipal and Environmental Infrastructure

& Transport and PPP’s

• Support institution building and training -

e.g. Turnaround Management Programme (TAM), Business Advisory Services (BAS), TAM/BAS Crisis Response Programme, Legal Transition Programme (LTP); Policy Dialogue

“what”: Technical Co-operation funds

“what”: ALL* Consultancy Assignments by source

Technical Co-operation funds Bank loan proceeds Bank Administrative budget Annual Estimates €40 to 100 m €5 to 30 m €30 to 70 m In 2010 €85.66 m €2.57 m €48.94 m 1,587 contracts 7 contracts 1,227 contracts Contract party Clients

• r Bank

Clients Bank

* Includes CSU, TAM (6.5Mil - #728), OGC (16.7Mil - #509) and loan funded

Bank Administrative budget, 36% Bank loan proceeds, 2% Technical Co-

• peration funds,

62%

“what”: 2010 CSU Contract Awards by Project Sector* (all EBRD)

* Share of Value

• !

"#$ % &! '

• ()

*

“what”: 2010 CSU Contract Awards by Project Sector* (Dutch Consultants)

* Share of Value

')+ &!

• $

,-

• $

"#.

3% 2% 6% 2%

% value of EBRD total % value of EBRD total

10%

“what”: an example of Municipal and Environmental Infrastructure (MEI) Sector

The MEI sector covers:

• direct revenue earning services (water supply, waste-

water collection and treatment, solid waste management, district heating, natural gas distribution and urban public transport).

• Infrastructure (urban roads, environmental clean-up
• perations).

The provision, financing and management of these municipal and environmental services are the responsibility of local

• r regional governments.
• Environmental

services, such as industrial and hazardous waste management, that may be organised nationally or outside local government responsibility.

“what” MEI Standard Consultancy Assignments and Types of Specialists

• Financial Audit

(auditors)

• Feasibility Study

(sector engineers, environmental, financial, legal experts)

• Environmental Impact Assessment

(environmental experts)

• Financial and Operational Performance Improvement

Programme (FOPIP) (financial, management information system, corporate restructuring experts)

• Legal Due Diligence

(legal experts)

“what” MEI Standard Consultancy Assignments and Types of Specialists Required (… cont’d)

• Financial Due Diligence

(financial experts)

• Corporate Development Programme

(financial, legal, management information system and IT, business planning experts)

• Project Implementation Unit; Procurement Assistance

(procurement experts)

• Creditworthiness Enhancement Programme

(financial, legal, sector regulation experts)

• Public Service Contract

(legal, corporate, financial experts)

• 5. who?
• 5. who?

“ “who who” ”: : www.ebrd.com www.ebrd.com

About us

• What we do
• Who we are
• Where we are
• Who we work with
• (…)

Procurement Notices (see next slides!)

Working with us

• Project financing
• Procurement (see next!)
• Trade Loan syndications
• Advice and support
• Jobs at the EBRD
• Projects
• Countries
• Sectors

“ “who who” ”: procurement in : procurement in ebrd.com ebrd.com

Consultancy Services

• Consultant opportunities

(procurement notices)

• eSelection
• Data & reports

“who”: Consultancy Services Unit (CSU)

• CSU provides technical advice and operational support to

users of consultancy services within the Bank and to its Clients when selecting and engaging consultants.

• CSU is also responsible for ensuring compliance with the

Bank’s Procurement Policies and Rules with donors’ rules and requirements when donor funds are used for the provision of consultancy services.

• CSU usually chairs as not-voting member in the

evaluation Committee’s for shortlisting and selecting of Expressions of Interest and Proposals for consultancy assignments with a supervisory role on procedural and contracting aspects

“who”: Banking department

The Banking department carries out EBRD’s

lending and investment operations by means

• f projects; consultancy services are used to

support these operations

When consultancy services are for the benefit

• f the Bank, Banking members are key

players in project preparation, consultants selection manage the consultants during delivery of the services

“who”: Banking business groups

Central Europe, Western Balkans, Turkey, Telecoms, Informatics and Media Central Europe, Western Balkans, Turkey, Telecoms, Informatics and Media Financial Institutions / Trade Facilitation Prog. Financial Institutions / Trade Facilitation Prog. Municipal & Environ. Infrastructure Municipal & Environ. Infrastructure Russia Russia Turkey, Eastern Europe, Caucasus and Central Asia Turkey, Eastern Europe, Caucasus and Central Asia Natural Resources Natural Resources Energy Efficiency & Climate Change Energy Efficiency & Climate Change Monitoring Monitoring Industry, Commerce & Agribusiness Industry, Commerce & Agribusiness Power and Energy Power and Energy Transport Transport Sector Teams Country Teams Sector Teams Country Teams

“who”: the Client’s role

• The Client selects consultants in assignments where the

Client is the main beneficiary of the services (mostly project implementation)

• The Client is responsible for all aspects of the

procurement of contracts. It invites, receives and evaluates tenders and awards contracts which in all cases are concluded between the client and the consultant. The EBRD is not a party to the consultancy contract and channels TC funds through a grant agreement with the Client.

• The role of the Bank is to review and monitor the client’s

tender process and assists contract administration to ensure compliance with procedures.

“who”: Consultants Participation

Success rates in open competition for top ten

consultants nationalities by value of contract awards:

– British: 9%

• Italian: 22%

– German: 13%

• Dutch: 9%

– Russian: 17%

• Danish: 12%

– Swedish: 14%

• American: 12%

– French: 17%

• Spanish: 5%

Success rates are calculated as the ratio between

the number of expressions of interest submitted and resulting contract awards

“who” to contact in EBRD

• Project enquiries (existing EBRD projects only)

Tel: +44 (0)20 7338 6282 / fax: +44 (0)20 7338 7380

• Business Development and project proposals

Tel: +44 (0)20 7338 7168 / fax: +44 (0)20 7338 7380

• General enquiries

Tel: +44 (0)20 7338 6372 / fax: +44 (0)20 7338 6690

• Procurement opportunities

via web site: www.ebrd.com

• Publications

Tel: +44 (0)20 7338 7553 / fax: +44 (0)20 7338 6102

• Consultancy Services Unit

Tel: +44 (0)20 7338 6124 / fax:+44 (0)20 7338 7451

• eSelection

Tel: +44 (0)20 7338 7307 / Fax: +44 (0)20 7338 7451

how? how?

“How”

How EBRD or its Clients select

consultants

Strategy for winning contracts (eSelection for Consultants)

Procurement Policies and Rules (PP&R)

• Revised Procurement Policies & Rules (PP&R) were adopted by

the Bank’s Board of Directors in May 2010 after a public consultation process: http://www.ebrd.com/pages/research/publications/ policies/procurement.shtml

• Based on fundamental principles of non-discrimination, fairness

and transparency

• Harmonisation with other International Finance Institutions (IFIs)
• n-going (e.g. Standard Request for Proposal)
• Revised PP&R define new thresholds for consultant selection

procedures

Procurement Policies and Rules (PP&R)

Section 5.1 of Bank’s PP&R: “The main concern when choosing consultants should be the quality of the services provided.”

Main Selection Methods (1)

QUALITY-BASED SELECTION: No consideration of price during selection, highest-ranked Consultant is invited to negotiate the contract, generally for (i) very complex assignments which can be carried out in substantially different ways and cost proposals may not be comparable (ii) assignments with large downstream impacts (iii) contracts below EUR 300,000

Main Selection Methods (2)

QUALITY- AND COST-BASED SELECTION: Selection based on quality (approx. 80%) and price (approx. 20%), allocation to quality/price depends on nature of assignment, generally for (i) standard assignments (ii) scope of services are well defined and parties can estimate with reasonable precision the required input, staff time, duration etc. (iii) contracts above EUR 300,000 if standard and not complex

Overview of Selection Procedures for Consultant Selection (EBRD or Client)

Call for expressions of interest Long list Shortlist Proposal (tech & fin.) Select consultant Negotiations Contract Call for expressions of interest Long list Shortlist Select consultant Negotiations Contract Select consultant Negotiations Contract

Evaluation of Evaluation of Proposals Proposals

(quality (quality-

• &

& cost cost-

• based selection,

based selection, EUR 300,000 and over) EUR 300,000 and over)

Selection from Selection from Shortlist Shortlist

(quality (quality-

• based selection,

based selection, EUR 75,000 EUR 75,000 – – EUR 300,000) EUR 300,000)

Direct Direct Selection Selection

(quality (quality-

• based selection,

based selection, less than EUR 75,000) less than EUR 75,000)

Quality-based selection (less than EUR 75,000) The Executing Agency (EBRD or Client) selects

without competitive selection

Bank may negotiate on budget, team

composition and contractual terms

How does the Client or Bank choose for direct

selection? How can consultants improve their chances of being awarded Direct Selections?

Selection Procedures – Direct Selection

Quality-based selection (EUR 75,000 – EUR 300,000

for firms and EUR 75,000+ for individual experts)

Generally begins with a “Procurement Notice”

requesting expressions of interest on the Bank’s Website

The Shortlisting Committee creates a shortlist of firms

who are ranked according to technical merit

The top ranked firm is sent the Terms of Reference

(ToR) and invited to submit a workplan and budget

When negotiations are successful, contract is awarded If negotiations fail, second ranked firm is contacted

Selection Procedures – Selection from Shortlist

Quality- & cost-based selection (EUR 300,000 and

• ver)

Procurement Notice and shortlisting of firms

(1) generally between 3 and 6 firms (2) normally no more than 2 consultants from the same country (3) normally requires at least one qualified consultant from one of the Bank’s Countries of Operation

Shortlisted firms are sent the Request for Proposal

(RFP) package

Selection Procedures – Evaluation of Proposals (1)

Request For Proposals (RFP)

• RFP1 - Data Sheet
• RFP2 - Instructions to Bidders
• RFP3 - Templates and Forms
• RFP4 - Evaluation Criteria (!!!)
• RFP5 - Terms of Reference
• RFP6 - Contract Template

Selection Procedures – Evaluation of Proposals (2)

RFP 4 (Evaluation Criteria) Key Points: (1) Firm’s project experience (by subject matter, sectors, track record in specific countries) (2) Methodology, work plan, comments on ToR (3) Calibre/CVs of experts proposed to carry

• ut the assignment

(4) Other (local language, local presence/input) (5) Weight of financial proposal generally 20%

Selection Procedures – Evaluation of Proposals (3)

Selection & Contracting – Timeframe

Always depends on circumstances of individual case (could be longer if Client selects/contracts which is not fully familiar with EBRD standard procedures)

4 - 6 months Evaluation

• f Proposals

5 - 7 weeks Selection from Shortlist 7 - 14 days Direct Selection

Statistics on Selection Procedures

Share of Value of Contract Awards by Selection Method 0% 20% 40% 60% 80% 100% 2006 2007 2008 2009 2010

Evaluation of Proposals Selection From Shortlist Direct Selection

Clarifications and Debriefing

Before deadline for submission expires,

request clarifications from Bank or Client (RFP 1 generally sets deadline for questions)

If unsuccessful you may ask for a debriefing

when selection process is completed

Complaints should be sent to Bank or Client

with a copy to the Director of the Banking Department Team and the Director of the Procurement Department

(1) Bank-Contracted Templates

(2) Client-Contracted Templates (3) Applicable Law & Arbitration (4) Indirect Taxes (VAT) (5) Lump-sum contract vs. Time-based Contract (6) Periodical Payment / Milestone Payments (7) Advances

Contracting (Bank or Client?)

General considerations:

What is level of competition? Be selective –

do you have any comparative advantage?

Who will select/contract? EBRD or the Client?

Is addressee “banker or municipality”?

One step (selection from shortlist on basis of

expressions of interest only) or two steps (expression of interest and request for proposals)?

Strategy for Winning Contracts – Basics (1)

• One step after the other:

(i) Focus on smaller assignments first (the first contract with EBRD enables you to demonstrate your excellence) (ii) The expression of interest (EoI) matters (starting point)

• Carefully assess submission requirements / evaluation

criteria (i) Procurement Rules (e.g. Conflict of Interest?) (ii) Eligibility (iii) Deadlines (iv) Budget viable? (v) Specific submission / evaluation requirements?

Strategy for Winning Contracts – Basics (2)

Strategy for Winning Contracts – Assess Notice & Evaluation Criteria (1)

Albert Einstein: “Not everything that counts can be counted and not everything that can be counted counts”

• What are the specific submission requirements/evaluation

criteria for EoIs/proposals? (i) Project references: Previous similar project experience? Similar budget/duration? Similar services/objectives/ activities? Similar country/region? (ii) Key experts/CVs: Relevant previous professional experience? Language requirements? How many key (!) experts? (iii) For proposals: Methodology, comments on Terms of Reference (“ToR”), workplan

• Pay attention to detail! Is your expression of

interest/proposal responsive?

Strategy for Winning Contracts – Assess Notice & Evaluation Criteria (2)

Be pragmatic when drafting EoI or proposal

Main objective is

to address the requirements in the procurement notice or Request for Proposal package and to be awarded the contract

Main objective is not

to describe how to successfully carry out the assignment in the technical proposal

Strategy for Winning Contracts – Assess Notice & Evaluation Criteria (3)

Corporate Services are required. The Consultant should be a firm or a group of firms with

• 1. Substantial relevant project experience related to district heating and

respective corporate finance, law and tariff studies.

• 2. Extensive project experience in the EBRD’s countries of operation

and in working with International Finance Institutions (IFIs).

• 3. Experts capable of carrying out the Assignment. Key experts should

preferably include a project manager, a district heating utility financial and operational expert, a legal expert with good knowledge

• f regulatory framework and legal practices of district heating sector

and public service contracts in Russia and a financial expert with good knowledge of district heating sector and tariff setting mechanisms in

• Russia. Experts shall have a minimum of 5 years experience in the

activity for which they are proposed.

• 4. It is recommended that a significant part of the consultancy input will

be carried out by local sub-consultants/contractors, specifically the preparation of public service contract and negotiation of tariffs with local tariff regulator.

Strategy for Winning Contracts – Example – Consultant Profile per Notice

Be realistic – can you match the submission/evaluation criteria? If not, consider (i) consortia or sub-contracting opportunities, identify potential local, regional or international partner firms to complement your firm’s strengths (know-how, project references, key experts) (ii) engaging external experts/freelancers to satisfy requirements related to key personnel

Strategy for Winning Contracts – Join Forces (1)

Know the market. Research and assess:

(1) Contracts awards (2) Previous shortlists for similar assignments (3) Statistics

EBRD information available under:

http://www.ebrd.com/pages/workingwithus/ procurement/consultancy.shtml

Also check similar webpages of EU, World Bank,

IFC etc.

Strategy for Winning Contracts – Join Forces (2)

(1) The key is to enable the evaluators to quickly and easily find and assess the relevant information (2) Remember Blaise Pascal who wrote: “I would have written a shorter letter but I did not have the time!”

Strategy for Winning Contracts – “Be Kind to the Evaluators” (1)

• Consider your application from perspective of evaluation

committee - are you able to easily assess your firm’s strengths and compliance with evaluation criteria?

• Submit documents that are

(i) tailored (adapt your regular standard documents) (ii) focussed (all key points/evaluation criteria addressed?) (iii) concise (table of content, clear structure & headlines, easy to assess, short sentences, use tables instead

• f

running text when appropriate etc.) (iv) accessible (submit one pdf-file not many)

Strategy for Winning Contracts – “Be Kind to the Evaluators” (2)

Strategy for Winning Contracts - Example for Project References

1)

Key Tasks per Objective

2)

Activities per Key Tasks

3)

Deliverables/Outputs

1)

Background

2)

Overall Objectives

3)

Results/Outcome Consulting Services Provided Detailed Description of Assignment

Partners Duration Funding Source/ Donor Name of Client (public/ private)

No of Staff provided Proportion carried out by Consultant (%) Overall Assignment Budget (EUR) Country

Name Firm

Assignment Title: Reference No.

Strategy for Winning Contracts - Example for Describing Experts’ Experience

Relevant Responsibilities/Tasks Relevant Activities Relevant Deliverables/Outputs Description: Expert’s Position/ Job Title: Company/Client/ Donor: Country: Duration: (m/year) to (m/year) Assignment Title:

Do not submit financial offer when selection is based

• n quality (unless otherwise requested), in particular

never add financial offer to EoI!

Seal financial offer (ensure confidentiality!) Do not apply if your firm is not eligible (check

eligibility clause in notice)

Do not submit late Do not liaise with EBRD/Client after publication of

notice (apart from requests for clarifications via instructions)

Do not stay silent on conflict of interest!

Strategy for Winning Contracts – Avoid the Big Don’ts

(i) Monitor developments in the relevant sector/country, by donor/IFI (ii) Monitor EBRD’s website for ‘Procurement Opportunities’ (iii) Subscribe to EBRD eSelection and procurement alerts

Strategy for Winning Contracts – Be Up to Date

Information available under EBRD Procurement

EBRD’s new projects Project pipeline and executing agencies Lists the latest public and private sector projects

approved by the EBRD

Procurement notices for consultancy assignments Consultancy contract awards

and shortlisted consultants

Major contracts that were

awarded in operations financed by the EBRD (These pages are regularly updated)

ebrd.com - Procurement Notices

Search by country Search by sector Search by contract type

• Consultancy

Services

• Corporate goods

works and services

• Project goods,

works and services

Search Results

• Issue Date
• Deadline
• Country
• Notice Title
• Sector
• Notice Type

ebrd.com - Procurement Notice

Sign-up for Email alerts! Procurement Notice

“how” does EBRD select consultants

eSelection for Consultants

eSelection for Consultants

This is a web based application intended to provide: – More transparency – More efficiency – Wider participation in competition – Level playing field

eSelection: Benefits for Consultants

Subscribe for electronic notification about new

• pportunities by industry sector and area of expertise

to increase competition

Submit expressions of interest & proposals (including

financial proposals) on-line/electronically

Consultant can view the status of application,

manage participation in selection processes and monitor the progress of any selection process

Cost reductions as a result of on-line submissions

eSelection - https://eselection.ebrd.com/suite/

Sends email with link to reset password Register here Click here to view procurement notices Send a query or request assistance

Questions?

“He must be very ignorant for he answers every question he is asked.”

Voltaire

Thank You!

Mr Martin Ehrenberg Senior Advisor

Consultancy Services Unit EhrenbeM@ebrd.com

• +44 (0)20 7338 7657
• +44 (0)20 7338 7451

Mr Andrea Baldan Head Operations

Consultancy Services Unit BaldanA@ebrd.com

• +44 (0)20 7338 7307
• +44 (0)20 7338 7451