business opportunities for portuguese companies in ebrd ...€¦ · business opportunities for...

Business Opportunities for Portuguese

Companies in EBRD Financed Projects

Lisbon – 18 June 2015 DIRK PLUTZ Senior Adviser

Procurement Policy Department

EBRD finances diverse range of enterprises

12%

12%

2%

2%

5%

29% 4%

13%

8%

18%

Agribusiness - 12%

Manufacturing and Services - 12%

Information & Communication Technologies - 2%

Property and Tourism - 2%

Equity Funds -5%

Financial Institutions - 23%

Municipal & Env Inf - 4%

Transport - 13%

Natural Resources -8%

Power and Energy - 18%

22 June, 2015 2

Net cumulative business volume €95bn

Note: Unaudited as at end December 2014

Introduction to EBRD Case studies

Cumulative since inception:

4,256 Projects

101.4 billion EURO

72%– private sector

28%– public sector

EBRD invests in 34 countries of operations

EBRD Procurement Policies

DOCUMENT OF THE EUROPEAN BANK

FOR RECONSTRUCTION AND DEVELOPMENT

EBRD FINANCING

OF PRIVATE PARTIES

TO CONCESSIONS

Public Procurement Principles

EBRD shares same principles as other IFIs

Aligned to principles of WTO Government Procurement to make purchases or investment

Public sector procurement rules follow principles for transparency, efficiency, economy and accountability in the use of public funds

Public Procurement Principles (cont.)

Best public sector procurement procedure to select suppliers and contractors is open competitive tender

EBRD procurement rules are consistent with best international practices and will normally replace government rules in projects financed by EBRD loans

EBRD Specific Procurement Principles

Eligibility to participate is open to firms from all countries

Specific rules for sub-sovereign clients

Only restriction is capability to fulfil the contract

No domestic preference

EBRD PP&R

* Detailed rules for public sector

• Open Tender

* Policies and objectives for private sector

• Follow normal commercial practices

* Consultant Services

* Guidance to Tenders

EBRD Project cycle

Procurement takes place throughout the cycle

Responsibilities of Client Agency

Responsible for all aspect of the procurement of contracts

Appoints project unit

Performs planning activities

Notifies prospective tenderers of tender opportunities

Prepares prequalification and tender documents, and request for proposals

Receives and evaluates tenders and proposals

Awards contracts

Manages contracts

Responsibilities of contractor, supplier or

consultant

Obtain tender documents or accept invitation to submit proposals for consultant services

Submit tenders or proposals in accordance with the requirements set forth in the tender documents or request for proposals

Supply goods or deliver services in accordance with the terms and conditions of the contract

The Bank’s role during implementation

•Public Sector Operations

The Bank reviews and monitors the client’s tender process and

contract administration to ensure that procurement is carried out in

accordance with the agreed procedures.

The Bank reviews complaints when addressed to the Bank

•Private Sector Operations

The Bank undertakes due diligence and monitors contract

administration for larger projects to ensure that fair market prices

are obtained

Projects of particular interest?

Examples of goods and works procured under

Bank projects

• Municipal Infrastructure

Waste water treatment plants, pipes, meters, pumping stations, sewage plants, process plants, incinerators

• Transportation Rail track maintenance equipment, locomotives, signal systems, trams, buses, air traffic control and navigation equipment, motorway construction, management information systems

• Power and Energy Efficiency Power transmission lines and substations, distribution control systems, power stations and sub-components, meters, energy efficiency equipment, refurbishment of plants, management information systems

Nuclear safety

The EBRD manages six nuclear safety Funds with over €6.5 billion in pledged

contributions. Each Fund is governed by specific provisions as set out in the

Rules of the Fund approved by the respective Assembly of Contributors and by the

EBRD Board of Directors.

Procurement under the Funds must follow the EBRD’s PP&R for public sector

projects with the limitation that eligibility is restricted to entities from member

countries of the respective Funds, the EU member states and the EBRD’s

countries of operation. Korean Companies registered in Korea are not eligible.

Southern and Eastern Mediterranean 2014

Country

No. of

projects

Net business

volume

Gross

disbursements

Examples of Current Projects

Morocco 18

€450million

€254 million

• Nador West Med Port

• ONEE Water Supply

Tunisia 16 € 215 million

€117 million

• Bizerte Lake Environmental Project

Egypt 21 €762 million

€222million

• Cemex Egypt (assiut Cement

Company) – Fuel Substitution

• Ibn Sina Pharma

Jordan 14 €337 million

€103 million

• GAM Solid Waste Project

• MS Pharma

General public procurement statistics 2013

• 172 contracts placed (excl. NSD) for a total value of €1.367 billion

• EBRD financed €901 million, clients and co-financiers the balance

• Largest contract (€98 million) “Construction and Installation Works

for Vladivostok Combined Heat & Power Plant” in Russia.

• Average contract value €7.9 million

• Public sector contracts awarded through Open Tendering:

96 percent of the total contract value

• 68 contracts under Nuclear Safety funds for a total value of €105

million.

• 2,065 contracts are TC funded consultants and OGC retained

outside counsel (selection following the PP&R)

• 8 Complaints (on 2,305 contracts selected using the PP&R)

Key findings in procurement for 2014

0

50

100

150

200

250

300

350

2010 2011 2012 2013 2014

141

240

331 324

172

Nu

mb

er

of

co

ntr

ac

ts

Years


0

50

100

150

200

250

2010 2011 2012 2013 2014

20 20 16

37 25

66

133

235

194

112

48

72 65

93

33

4 9 4 0 2

Num

ber

of

Contr

acts

Year

Public Sector Contracts (number)

Power and Energy MEI Transport Other


0

200

400

600

800

1000

2010 2011 2012 2013 2014

690

320

43

366

375

391

786

735

704

537 605 7

67 9

11

589

444

2

6

12

0

10

Valu

e o

f C

ontr

acts

(€ M

illio

ns)

Year

Public Sector Contracts (Value €)

Power and Energy MEI Transport Other


Value Tenderers from the five most successful tendering countries were Russian Federation (€251 million) Romania (€197million), Turkey (€169 million), China (€125 million) and Germany (€94million). With a total signed value of €836 million, these contracts represent 61 per cent of the total signed contract value in 2014

Number Tenderers from the five most successful tendering countries Romania (29), Tajikistan (26), the Russian Federation (26), Kyrgyz Republic (9) and France (7). These 97 contracts represent 56 per cent of all contracts signed

Share 76 per cent of tenders were submitted by tenderers from countries of operations

They won 166 contracts worth €969 million

59% 17%

24% Tenderers from Countries of Operations tendering in their own country

Tenderers from Countries of Operations tendering in other Countries of

Operations

Tenderers not from Countries of Operations

Statistics Public Sector Procurement 2014

General procurement statistics 2014

Type of Contracts financed in public sector projects

Note: Excluding Nuclear Safety contracts and TC funded consultancy

Contract Size (€M) Works Supply &

Installation

Goods Consultant

Services

Total

0~0.3 7 1 14 10 32

0.3~7.5 55 7 18 12 92

>7.5 31 10 6 1 48

Total 93 18 38 23 172

Total Value (€) 868,243,363 350,756,633 121,701,922 25,935,100 1,366,637,019

Average Value (€) 9,335,950 19,486,480 3,202,682 1,127,613 7,945,564

Fund Portion* (€) 589,505,743 172,921,768 120,956,303 17,342,636 900,726,450

General public procurement activities 2014

• MoU on procurement policy dialogue signed with Bosnia &

Herzegovina

• Policy dialogue examples, Primary law Kyrgyzstan, corporate

procurement rules of Samruk-Kazyna (Kazakhstan)

• CIPS first pilot certification in Romania (transition impact)

• OECD Anticorruption network , Ukraine, Armenia, Mongolia

• 2nd edition of the Public Procurement Management Master

Planned EBRD Procurement Activities 2015

• Adjustment of the Procurement Policy (e-procurement, increased

clarity)

• Launch of e-procurement platform

• Expansion of the range of tender documents (simplification and

health and safety expansion)

• 3rd edition of the Public Procurement Management Master

• Joint co-financing framework with EIB and AfDB

• IFI procurement reform agenda

Statistics for Portuguese Firms for 2010 - 2014

Year 2010

Number of contracts placed = 141

Value of contracts placed = € 1,688 million

Number of tenders submitted by Portuguese firms = 2

Number of contracts won by Portuguese firms = 0

Value of contracts won by Portuguese firms = €0

Rate of success = 0%


Year 2011


Value of contracts placed = €1,879 million






Year 2012





Value of contracts won by Portuguese firms = €1.4 million



Year 2013






Rate of success = 0


Year 2014


Value of contracts placed = € 1,366bn






Year 2010 – 2014 Cumulative (approx.)



Value of contracts won by Portuguese firms = €1.4

Average rate of success = 6.25%


Successful Portuguese Tenderers 2011 Nuclear Safety Department

Successful Portuguese Tenderers 2012

Municipal and Environmental Infrastructure

Winning tenderer and

contract type Contract amount EUR Project Name

Consultores De Engenharia

e Gestao, S.A. (Consultant

Services)

1,355,481.98

R2CF Satu Mare Sub-

Project - Bank Monitored

Grant (Cohesion Funds)

Winning tenderer and

contract type

Contract amount EUR

Project Name

Efacec Sistemas De

Electronica (Goods) 8,893,077.00

Bohunice International

Decommissioning Fund

(BIDSF)

Efacec Engenharia E

Sistemas (Supply and

Installation)

3,257,703.43

Kozloduy International


(KIDSF)

Efacec Engenharia E

Sistemas (Supply and

Installation)

4,210,038.64

Kozloduy International


(KIDSF)

Statistics for Portuguese Firms for 2014

Details of tenders submitted by Portuguese firms in 2014

Tenderer and contract type

Contract amount EUR

Project Name/Sector

MSF Engenharia, SA, JV(JC

Construcoes Gabriel AS

Couto; Empresa de

Construcoes Amandio SA,

Rosas Constructores SA)

15,065,241.04

Moldova Road Rehabilitation

III Moldova (Transport)

MSF Engenharia, SA, JV (JC

Construcoes Gabriel AS

Couto; Empresa de

Construcoes Amandio SA,

Rosas Construtores SA)

18,772,995.80

Moldova Road Rehabilitation

III Moldova (Transport)

Where to find the opportunities?

• Where to find information on opportunities:

www.ebrd.com

National press

Know your market i.e. client

• What to look for on ebrd.com:

- Project Pipeline

- General Procurement Notices (GPN)

- Invitation for Prequalification or for Tender

Procurement Notices

Project

Procurement

Strategy for winning contracts

• Be focussed and selective

• Explore sub-contracting or joint venture (JV) opportunities

• Respond to the GPN and build your knowledge

• Read “Annex 1 - Guidance to Tenderers” of the Procurement

Policies and Rules

Strategy for winning contracts

• Don’t be too clever when preparing your tender (comply with the

requirements) !!!

• Does your company meet the qualification criteria? Form JV

• Make sure to provide answers to all questions and submit all

required documentation

• Review documents early and submit questions or issues in writing, if

necessary copy the Bank

Tenderer’s recourse

• Do not attempt to influence the tender evaluation process. The

evaluation process is confidential

• If unsuccessful, ask the client for a debriefing

• Complaints should be sent to the client with a copy to the Director of

the Banking Department Team and the Director of Procurement

using the Bank’s procurement complaint website

Thank You!

DIRK PLUTZ

Senior Adviser

EBRD Procurement Policy Department

Email: [email protected]

Tel: +44 20 7338 6219

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