November 20, 2008

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Market Reports

Special Report

BUSINESS OPPORTUNITIES (PROCUREMENT) UNDER WORLD BANK-FINANCED PROJECTS

Introduction
The wide variety of World Bank projects provides a broad scope of business (procurement) opportunities; contracts which range in value from a few to millions of dollars: For procurement of goods: vehicles, machinery, tractors, farm implements, fertilizer, transport equipment, electrical machinery and plants, industrial facilities, mining equipment, hardware, telecommunication systems, satellite communication systems, school textbooks, furniture, spare parts, and raw materials. For procurement for civil works: construction of ports, highways, schools, hospitals, housing, railways, bridges, irrigation works, water supply and sewerage facilities, and power plants. For procurement of services: design and feasibility studies, supervision of installation and construction, environmental assessment studies, monitoring of management activities, aerial photography and mapping, oil and gas exploration, financial services, and auditing assistance.

Many contracts for goods, works, and services are won by relatively small and middle-size enterprises. Some extremely large contracts - those for a major multipurpose dam or petrochemical industrial plant, for instance-are suitable only for large, experienced companies. Most procured items and civil works opportunities permit all sizes of firms to compete for contracts. Moreover, companies that win major contracts often subcontract to smaller companies for goods or services. These opportunities, which often are for services, usually arise in connection with civil works. But there are opportunities for suppliers as well. For example, the supply of window frames may be subcontracted by a school building contractor, or a supplier furnishing an industrial site may subcontract equipment components.

In order to familiarize yourself with the project development process and procurement procedures, it is recommended that you familiarize yourself with the World Bank lending process, project development, procurement operations, bidding and selection process, etc.
Link: web.worldbank.org/WBSITE/EXTERNAL/PROJECTS/PROCUREMENT/

Keep in Mind
The government of the borrowing country is responsible for all procurement steps, including advertising, prequalification evaluation, preparation of bidding documents, evaluation of bids, and contract awards. The Borrower, and not the World Bank, contract directly with companies and consultants. Consultants, contractors, manufacturers, and suppliers of goods and services to World Bank funded projects should therefore market themselves to the Borrowing Country, rather than to the Bank itself.

The Bank's role is to ensure that Borrower's implementation of procurement is carried out in accordance with the policies and procedures agreed upon with the Bank. (Refer to Procurement Guidelines) Link: www.worldbank.org/html/opr/procure/propage.html. The Borrower is the primary source of information regarding all aspects of the bidding process. Information on bidding opportunities under international competitive bidding (ICB) may be obtained from the General Procurement Notice and the Specific Invitation to pre-qualify or to bid, as described in paragraphs 2.7 and 2.8 of the Procurement Guidelines. General guidance on participation, as well as advance information on business opportunities in upcoming projects, may be obtained from publications which can be obtained through subscription to the United Nations Development Business.

Also available for purchase from the World Bank Bookstore/InfoShop is: "Procurement in World Bank Financed Projects: Self-Learning Program CD-ROM" August 23, 1999 / Stock no. 14569 (ISBN 0-8213-4569-9) / Price code S195 / $195.00. This is "A professionally prepared and comprehensive reference kit on World Bank procurement theory and application that is of great practical value to both the beginner and the initiated." --George Jadoun, Chief, Procurement & Project Management Programme, International Training Centre of the ILO, Turin

This CD-ROM is a self-paced, interactive training program designed for borrower staff, private-sector clients, and staff from the World Bank and other development banks. An excellent ready-reference tool, the CD-ROM provides comprehensive information about the World Bank's procurement policies and guidelines in a user-friendly multimedia format. The CD-ROM creates a unique learning experience through a combination of graphics, photographic images, sound, and text. Users can easily work at their own pace and explore topics of interest at any time, in any order, and as often as needed.

The training program consists of two major sections--the Learn Board and Case Studies. In the Learn Board, users can explore and learn about topics that have been prepared by procurement advisors from the World Bank. The Learn Board displays procurement topics at a glance and serves as a convenient ready reference. It covers topics such as the principles of procurement, planning procurement activities, the steps involved in procurement of goods and works, and all the steps for selection of consultants in World Bank financed projects.

The program also includes two case studies that illustrate the application of policy and guidelines in the procurement of textbooks and the selection of consultants. Topics covered in depth on this CD-ROM include: The Basics of Procurement; Procurement in relation to the Project Cycle; Procurement Planning; ICB Methods and Other Methods; Introduction to Goods and Works; Advertising; Pre-qualification; Bidding Documents
To order Link: www.worldbank.org/html/extpb/howtoorder.htm


Sources of Information
Several sources of information are available to assist interested firms in learning about the World Bank Group, and keeping updated of upcoming projects and business opportunities to help plan their marketing strategies.

Project Information
Link: web.worldbank.org/WBSITE/EXTERNAL/OPPORTUNITIES/

Projects Search, the Bank's on-line database, provides data and information on the current portfolio of pipeline, active, dropped, and closed projects.
Link: web.worldbank.org/WBSITE/EXTERNAL/PROJECTS/

InfoShop provides project documents corresponding to the stages of the project cycle.
Link: www.worldbank.org/html/pic/projinfo.htm

Monthly Operational Summaries report on the status of projects in the Bank's lending pipeline, and provides contact information in the implementing agency for suppliers and others.
Link: www.worldbank.org/html/opr/procure/MOS/contents.html

Bank-Financed Procurement provides information on items that clients will be purchasing with Bank financing.
Link: www.worldbank.org/html/opr/procure/contents.html

UN Development Business packages operational summaries of approved projects from the World Bank, the Inter-American Development Bank and the African Development Bank, together with invitations to bid and requests for expressions of interest.
Link: www.devbusiness.com

World Bank InfoShop
Link: web.worldbank.org/WBSITE/EXTERNAL/PUBLICATION/INFOSHOP1
Information about the Bank's activities is available at the Bank's InfoShop. Requests may be submitted via the Internet, the Bank's European (London and Paris) and Tokyo offices, and other Bank field offices. The InfoShop deals only with specific document requests not blanket requests for information--individuals will be directed to other sources of material available to the public.

The InfoShop offers Project Information Documents (PIDs), Environmental Data Sheets (EDSs), Staff Appraisal Reports, a summary of post-evaluation reports (OED Precis), a catalog of Bank documents available to the public, etc. The PID makes information available while a project is under preparation; it provides a brief summary of the evolving project and is subject to updating and expansion as project preparation proceeds. PIDs are provided free of charge, either in electronic form or as hard copy.
Link: www.worldbank.org/html/pic/proj_search.htm

World Development Sources (www-wds.worldbank.org) is the digital repository for thousands of World Bank Reports (policy papers, working papers, country economic and sector reports, project reports, etc.).

Interested companies can also obtain supplemental information on specific projects from the Bank's operational staff and from their Executive Director's office. In addition, embassies in developing countries can be contacted for information and assistance. Always keep in mind that borrowing countries are responsible for planning and implementing projects financed by the World Bank, and that there is no better source of information than direct contact with the borrower and its project agencies.

Development Business
The best way to find out about upcoming procurement opportunities is to subscribe to DEVELOPMENT BUSINESS, a twice-monthly United Nations publication that monitors projects in the pipeline of the World Bank and publicizes opportunities to bid as they arise. It is virtually the only place where you will find a comprehensive listing of procurement notices for World Bank projects. Development Business also contains information on business opportunities generated through regional development banks, and other development agencies (including African Development Bank, Asian Development Bank, Caribbean Development Bank, European Bank for Reconstruction and Development, and Inter-American Development Bank, etc.).

Development Business provides the World Bank's Monthly Operational Summary (MOS), which gives the status of all projects under consideration for financing by the World Bank, as well as a description of recently approved World Bank projects. It includes a list of categories of goods and services to be procured. Every issue of the newspaper contains invitations to bid on World Bank-financed projects and notices of recently awarded contracts. Development Business is available for $495/year for twenty-four issues.

Subscription information:
UN Development Business Online = US$445/year
UN Development Business print version = US$495/year
UN Development Business Online PLUS UN Development Business in print = US$695/year UN Development Business Online PLUS WB Monthly Operational Summary in print = US$550/year World Bank Monthly Operational Summary in print = US$250/year

The Online version is advantageous because it not only gives users more immediate access to upcoming business opportunities, but also allows them to quickly and easily retrieve relevant background information, including previously published project descriptions, procurement notices, and contract awards for a specific country or sector. The search feature is particularly useful. By searching relevant keywords, you can narrow your search. For further information on Development Business, or to request a sample of the newsletter, contact: Mr. Brent Anderson Development Business Liaison Office tel. 202-458-2397 / fax. 202-522-3316 E-Mail: DBusiness@worldbank.org. Development Business includes the following information:

Monthly Operational Summary (MOS) is a monthly report (which can also be obtained as a separate subscription for $250/year) listing all of the projects being considered for financing by the World Bank. The MOS tracks projects from identification to loan or credit signing. Nearly 900 projects are listed, providing enough information for companies to begin marketing to the borrowers. The Approved Projects section includes descriptions of projects as they are approved by the World Bank, including a detailed scope of the project, financing arrangements, address of the implementing agency, consultant requirements, and a procurement schedule listing the type of items to be procured under the project. The MOS has also recently been made available on the World Bank's external website.
Link: www.worldbank.org/html/opr/procure/MOS/contents.html

General Procurement Notices (GPNs) are issued by the borrower for projects that contain ICB, generally around the time of project appraisal, and at least eight weeks before bid documents are available. GPNs describe the type of procurement expected to take place during project implementation. This is the earliest public notice of procurement, and is the time for companies to contact the borrower if they are interested in supplying the goods or services listed in the notice. Publication of GPNs in Development Business is mandatory.

Specific Procurement Notices (SPNs) are invitations to bid for specific items or works. SPNs describe the item(s) being procured and give details about purchasing bid documents, deadlines for submitting bids, and other requirements. Publication of SPNs in Development Business is mandatory for large contracts. SPNs are also published in the local press of the borrowing country.

Major Contract Award Notices identify the successful bidders for contracts that have recently been awarded. This information is useful for monitoring the competition, as well as to identify firms for possible collaboration on future contract competitions, or possible subcontracting and supply opportunities.

Potential bidders desiring additional information on the procurement or the project in general should contact the Borrower's project implementing agency and not the World Bank or Development Business.

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Source: World Bank, Reprinted with permission.

 

 

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