working with the ifis carolyn cudmore, olifi ccic/caidp may 14, 2015
TRANSCRIPT
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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 [email protected]
OLIFI Manila (ADB): Xuguang [email protected]
OLIFI Abidjan (AfDB): Hartman [email protected]
OLIFI Bridgetown (CDB): Tammy [email protected]
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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
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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
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British Columbia: Vacant
Alberta: Shane Jaffer - [email protected]
Saskatchewan: Jordan Gaw - [email protected]
Manitoba: Robert Roe - [email protected]
Ontario: Philip Turi - [email protected]
Québec: Louise Lauzon- [email protected]
New Brunswick: Vacant
Nova Scotia: Liesl Harewood - [email protected]
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!