working with the ifis carolyn cudmore, olifi ccic/caidp may 14, 2015

Working with the IFIs

Carolyn Cudmore, OLIFI

CCIC/CAIDP

May 14, 2015

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OLIFI – Offices of Liaison with International Financial Institutions

Our goal

Maintaining and growing the percentage of IFI funded contracts awarded to Canadian firms.

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OLIFI – Who We Are

We are part of the Canadian Trade Commissioner Service, located in 4 Canadian Embassies abroad:

OLIFI Washington (WB/IDB/UN/MCC): Carolyn Cudmore carolyn.cudmore@internationational.gc.ca

OLIFI Manila (ADB): Xuguang Huangxuguang.huang@international.gc.ca

OLIFI Abidjan (AfDB): Hartman Kouassihartman.kouassi@international.gc.ca

OLIFI Bridgetown (CDB): Tammy Brathwaitetammy.brathwaite@international.gc.ca

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IFIs - Common Characteristics

• AAA Credit Ratings• Broad membership consisting of both lending

member countries and borrowing member countries• Operate either globally or regionally• Lending typically associated with well-defined

projects and implementation plans along with agreed-upon deliverables and measurable outcomes/performance indicators

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IFIs - Common Characteristics

• Provide technical and advisory services to developing countries/BMCs

• Play a valuable role in research and cooperation on development issues

• Increasingly harmonized in their operating structures, procurement, etc.

• Borrowing Member Countries are executing the majority of the procurement.

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What do they buy?• Relatively little!

• Rather….. They provide $150 billion annually in loans and grants to developing countries for poverty alleviation and economic development initiatives

• It is the borrowing or recipient countries who use these funds to buy products or services to carry out these projects

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What do Borrowing Member Countries Buy?

• Goods and Works – Equipment (medical, construction, ICT), Vehicles, Physical Works / Infrastructure development (hospitals, schools, roads, irrigation networks, etc)

• Services - analytical and advisory services (consulting, surveys, etc), education & training, professional (legal, accounting), etc

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Why explore IFI opportunities?

• Checks & balances in place that reduce risk for foreign bidders/contracts

• IFI-financed contracts can be a more accessible point of entry into certain foreign markets

• Contribution to international development projects and acquisition of international experience

• Opportunities to develop international partnerships

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Key points: The IFI Project Cycle

• The borrowing member countries, through an ‘Executing Agency’ are responsible for implementation of the projects – NOT THE IFI.

• But IFI-prescribed rules & procedures must be followed throughout the project cycle.

• The project cycle can last for many years but there may be opportunities throughout all phases (though most often in the ‘implementation’ phase)

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Key phases of the IFI Project Cycle

• Identification/Design – IFI & BMC consider possible projects that align with country’s development priorities (Pre-feasibility studies may be required)

• Preparation (design work, feasibility, EIAs, etc)• Appraisal (carried out by Bank staff)• Negotiation• Implementation & Supervision• Evaluation / Assessment

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Procurement Opportunities

• Predominantly in the ‘Implementation phase’• Managed by the Executing Agency in country• Advertised publicly when above certain thresholds

($200k)• Project Procurement Plan which details what will be

procured, when, and how• For Goods & Works, Pre-qualification often required• Consulting: Often two-staged and including:

• Calls for Expressions of Interest (EOIs)• Call for Proposals for short-listed firms (4-6)

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IFI Procurement

• Guidelines for selection of consultants and guidelines for goods and works contracts are available on Bank websites – Review closely!

• Turn-around time to respond is often short• Pre-determined evaluation criteria utilized for

selection of short-listed firms such as…• Regional experience• Experience on similar projects• Firm’s experience and capability

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Corporate Procurement Opportunities

• Corporate procurement consists of the administrative procurement coupled with some operational consulting (e.g. project preparation)

• WB procures approximately $1 billion / year in corporate procurement from its HQ in DC

• E-Consultant2 utilized for most of the operational procurement

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Key Project Documents• Country Assistance Strategies / Country Partnership

Strategies• Monthly Operational Summary• Technical Cooperation Profile / Loan Proposal• Plan of Operations (IDB)• Project Information Document (WB)• Project Appraisal Document• Procurement Plan (sometimes included in the PID or

PAD)• General Procurement Notices• Specific Procurement Notice ***

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IFI Procurement Notices – Where to find them?

• IFI websites• Local and national newspapers• Individual project websites• UNDB - (www.devbusiness.com) • Devex – various membership packages exist (www.devex.com) *** discount available for tender

tracking account

Canada’s Consulting Services Ranking at the IFIs

 2014 2013 2012 2011 2010

World Bank 5th 9th 14th 10th 10th

Inter-American Development Bank

7th 26th 19th 16th 15th

Asian Development Bank 6th 18th 3rd 15th 14th

African Development Bank -- 1st 2nd 1st 1st

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IFI Procurement Trends Affecting Canadian Firms

• Increase of borrowing country company participation and competitiveness

• In-country firms tend to be more cost competitive• Decentralization of the Banks• Untied aid

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Best Practices in Pursuing IFI Funded Projects

• Learn how the IFIs operate/ know who your client is• Assess if pursuing IFI funded projects is for you• Focus on your strengths and niche expertise• Identify priority countries – as a part of a regional

strategy• Read all IFI-strategies for your country – do any have

your sector of interest as a priority?• Review the project pipeline• Network with decision makers to gather intelligence• Find a local partner• Monitor and bid

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Partnering• Local firms are increasingly winning a large portion of IFI-

financed contracts• Quality-Cost-Based-Selection (QCBS) is the norm, and cost

typically constitutes 20-30% of the equation• Expressions of Interest and Technical Proposals are

evaluated according to pre-determined criteria with as much as 20% allocated to local partners (national preference)

• Companies that are new to a market should consider proposing their services as a sub-contractor to other successful primes (Canadian or international)

• Trade Commissioners play a critical role in helping to identify suitable partners in country

• Mining IFI Contract Award databases can also be useful

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Networking to Win

• Bank staff: feasibility studies and project preparation, overview of country and sector initiatives

• Executing Agencies: Government Ministries for execution of projects: procurement requirements, bidding documents, contract information, procedures & payments

• Country Office: execution, project ideas & procurement procedures, and problem solving

• Executive Director’s Office: problem solving, policy trends

• Local firms: partnership on international bids, local knowledge, legal assistance, language skills, etc

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Making the Shortlist & Submitting Proposals

Making the Shortlist: Gather info; track Projects; contact local partners; submit an Expression of Interest (EOI)

Submitting a Winning Proposal: Visit decision makers; address the Terms of Reference clearly; emphasize innovative technical solutions,qualified consultants, and regional experience; involve local partners; submit a professional and polished proposal

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The Canadian Aid Market Support Network

• OLIFIs• Executive Director’s Offices representing Canada at

the IFIs• Regional Offices of the TCS in Canada• Trade Commissioners at Canadian missions in

developing countries • Private Sector Liaison Officers (PSLO)

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OLIFI Services – How We Can Help

• One-on-one consultations to discuss your IFI marketing strategy

• Assistance in identifying key IFI contacts and project information

• Advice on approaching and liaising effectively with Bank staff

• Troubleshooting bid procedures and procurement problems on behalf of Canadian clients – often done in cooperation with the Canadian Executive Director’s Offices at the Banks

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OLIFI Services - How We Can Help

• Up-to-date information on IFI developments, initiatives and opportunities

• Assist with trade missions to the IFIs and with trade events in Canada

• Assistance in understanding IFI organizations and operations

• Manage IFI Washington Website – www.IFIWashington.gc.ca

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The Private Sector Liaison Officer (PSLO) Network

• A network of business intermediary organizations working to foster trade and investment between countries with the support of IFI products and services

• Initially established by the WB but expanded to cover other IFIs and aid agencies

• Disseminate information about business opportunities and facilitate contact between local companies and the IFIs

• Organize consultations on development issues of interest to the private sector

• Provide information on knowledge resources and partnership opportunities

• 8 PSLOs positions in Canada, connected to provincial governments and, trade/industry associations

British Columbia: Vacant

Alberta: Shane Jaffer - shane.jaffer@gov.ab.ca

Saskatchewan: Jordan Gaw - jgaw@sasktrade.sk.ca

Manitoba: Robert Roe - robert.roe@gov.mb.ca

Ontario: Philip Turi - philip.turi@cme-mec.ca

Québec: Louise Lauzon- llauzon@ccmm.qc.ca

New Brunswick: Vacant

Nova Scotia: Liesl Harewood - lharewood@nsbi.ca

Canada’s Private Sector Liaison Officers (PSLO) Network

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How to best prepare?

• Review IFI websites and other resources (e.g. www.IFIWashington.gc.ca)

• Read ALL available project documentation for any specific projects of interest.

• Read country partnership strategies for any specific countries of interest.

• Sector strategies also available.• Contact OLIFI or PSLOs with your questions.

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Key Takeaways

• Considerable opportunities for Canadian consultants

• Thorough understanding of the project cycle will offer an advantage

• Strategic partnership are critical for success• Understanding what the TCS can do for you• There is always room for growth!

www.IFIWashington.gc.ca

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Thank you

Carolyn CudmoreTrade Commissioner (IFIs)carolyn.cudmore@international.gc.ca(202) 448-6416