ADB Business Opportunities Seminar PROCUREMENT Istanbul, Turkey 23 November 2018 C. Janyna Rhor Principal Procurement Specialist Procurement, Portfolio and Financial Management Department
Document locations • Policy: https://www.adb.org/documents/adb-procurement-policy • Regulations : https://www.adb.org/documents/procurement-regulations-adb-borrowers • Guidance Notes (24 documents): https://www.adb.org/documents/guidance-notes-on-procurement • Standard Bidding Documents (8 documents) and User Guides (9 documents): https://www.adb.org/site/business-opportunities/operational- procurement/goods-services/documents
Policies applicable to Procurement of Goods, Works and Services Pre-2017 processing Post -2017 processing
When are Consultants, Contractors & Suppliers needed? Project and Procurement Cycle Most ADB projects rely on Consultants, contractors and suppliers
Top 5 Turkish firms in supply of goods and works (Jan 2013-Dec 2017) Amount Contractor Sector ($ Million) Kolin Insaat Turizm Sanayi ve Ticaret A.S. TRA 285.53 Cengiz Insaat Sanayi ve Ticaret A.S. TRA 266.65 Limak Insaat Sanayi ve Ticaret A.S. & Zahir Khan and Brothers (JV) TRA 148.31 Polat Yol Yapi Sanayi ve Ticaret A.S. TRA 124.18 Ozgun Yapi Sanayi ve Ticaret A.S. TRA 97.94 Others 394.70 Total 1,317.31
Business Opportunities: Goods and Works Supply of Goods: Machinery, equipment (medical, office, TVET), IT hardware/software, vehicles, furniture, etc. Civil Works: Roads, railways, bridges, maritime infrastructure, dams, irrigation canals, hospitals, schools, etc. Turnkey Contracts: Power Plants, Pump Stations, Water Treatment Plants, Solid Waste Treatment Plants, Heating Plants, Airports, etc.
Business Opportunities: Non-consulting Services • Standard surveys, audits, quality certifications • Vocational training following standard curriculum • Medical, community-based healthcare • Translation, editing, photography • Event management and logistics • Standard IT services • Small-scale installation, equipment maintenance and repair • Elderly care centers • Early childhood education centers • Inter-island shipping schemes • Facilities management
Contractual Relationships COMPLAINTS of F&C ALLEGATIONS SUPPLIER Executing ADB Agency is CONTRACTOR responsible for INVESTIGATIONS, all procurement AUDITS, SANCTIONS activities FINANCING ADB oversees AGREEMENT compliance with ADB’s EXECUTING/ Procurement IMPLEMENTING AGENCY Guidelines and (Borrowing Country Government) Regulations
Identifying opportunities for contracts with project executing agencies and ADB • Country partnership strategy and Country operations business plan (CPS and COBP) • Procurement plans • General and specific procurement notices o Advance notices o Invitation for prequalification o Invitation for bids o Consulting services recruitment notice (CSRN) • Hop-on opportunities o Prequalified contractors / consultants o Contracts awarded
Country ry Operations Business Pla lan
Active Projects - How to find what type and when tenders will be released by the EA / IA To see all ADB funded project in Vanuatu, search for https://www.adb.org/projects/country/van The search can be refined by country, sector and whether the project is planned, approved, active or closed. Once a project of interest is found, click on the link which will bring you to the main project page. ADB Business Opportunities Seminar
Finding the Procurement Plan When on the Project page, (1) click “DOCUMENTS” then (2) “DOCUMENT TYPE”, and then search for (3) “PROCUREMENT PLAN” (4) click the hyperlink. (5) Download the document on the subsequent page
Details Contained in the Procurement Plan (Looking at Works Only)
Specific procurement notices
Specific Procurement Notices
Hop-on Opportunities – Contracts Awarded –
Hop-on Opportunities – Prequalified Contractors
Bidding Strategy Advice on Bid Preparation
Think strategically! Position yourself according to your competitive advantage Ability to operate in countries that do not generate significant bidder interest • Afghanistan • Cambodia • Pakistan • Solomon Islands • Papua New Guinea • Timor-Leste and other Pacific Island Countries Experience in the country and with executing and/or implementing agencies Access to information on local joint venture partners and subcontractors Access to information on availability of key inputs • Construction Materials • Labor force • Equipment and construction machinery
Seek clarification: “Don’t wait ‘til it’s too late!” BIDDING DOCUMENT POTENTIAL ISSUES • Unreasonable bid preparation period Bid Conditions • Unclear which entity must comply with Qualification Criteria qualification criteria • Ambiguous criteria • Restrictive criteria • Incomplete, unclear or restrictive requirements Requirements • Unreasonable contract completion period Contract Conditions • Unbalanced risk allocation Write to ADB directly if the executing / implementing agency fails to respond promptly or there is a complaint against the executing / implementing agency
Advice on Bid Preparation --- What to do --- Do not add conditions Submit bid within the stipulated deadline Ensure following steps are taken by the EA at bid opening: All relevant prices are read out All discounts are read out Presence and amount of bid security is read out No envelop remains unopened The record is signed by all bidders present and Be Aware of Possible Bid Extension
Advice on Bid Preparation --- What to do --- Final check of the bid • Amount, validity and text of Bid Security (if requested) • Signatures and power of attorney • Joint venture agreement enclosed • References enclosed • Discounts in covering letter or appropriate place as specified in the bidding document • Marking of envelopes as appropriate
Advice on Bid Preparation --- What not to do --- No Bid Security (if required) Insufficient Amount or shorter period of validity of Bid Security Lack of Supporting Documents Incomplete Bids Partial Bids Absence of test reports if required Bids not signed Conflicts of interest not disclosed
Prohibited Practices • “corrupt practice” means the offering, giving, receiving, or soliciting, directly or indirectly, anything of value to influence improperly the actions of another party • “fraudulent practice” means any act or omission, including a misrepresentation, that knowingly or recklessly misleads, or attempts to mislead, a party to obtain a financial or other benefit or to avoid an obligation • “coercive practice” means impairing or harming, or threatening to impair or harm, directly or indirectly, any party or the property of the party to influence improperly the actions of a party; • “collusive practice” means an arrangement between two or more parties designed to achieve an improper purpose, including influencing improperly the actions of another party
• Debriefing: • Unsuccessful bidders may request debriefing from Executing or Implementing Agency (EA / IA). If they are not satisfied with the explanation given, they may contact ADB directly. Debriefing and • Complaints: • Bidders may file complaint directly with ADB and may Complaints copy ADB on correspondence with Executing or Implementing Agencies (EAs / IAs). • How to report fraud: • www.adb.org/site/integrity/how-to-report-fraud
ADB Business Opportunities Fairs (BOF)
Results of 9th BOF, 2018 • One of ADB’s largest annual events, 9 years running • Date: 14-15 March 2018 • Venue: ADB Headquarters, Manila, Philippines
BOF 2018
BOF 2018 32
Looking ahead - 10 th BOF 2019 • Dates: 27-28 March 2019 • Weblink to registration opened https://www.adb.org/news/events/10th-adb-business-opportunities-fair-2019 • Register online before the deadline in Feb. 2019 • Review PPTs of previous years to inform your approach (http://adbprocurementforum.net/bof-2018-presentations/) • Collect information on projects and tenders o Projects and tenders page: https://www.adb.org/projects o Business Center: https://www.adb.org/business/main • Make appointments with sector specialists • Make the most of networking opportunities!
www.adb.org THANK YOU! For further information please contact C. Janyna Rhor at cjrhor@adb.org or call +632 683 4719
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