New Role – Strategy – Function – ResponsibilitiesWorking Together In Transforming IsDB Project Delivery

Project Procurement (PPr); Office of the Vice-President Country Programs

Procurement Function in Realizing the Sustainable Development Goals

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If You Don’t Know Where You Are Going

…..Then

…..Any Road Will Take You There!

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Introduction

Key Points on Project Procurement in IsDB

Digitization in Project Procurement and its Importance in Project Delivery

Staffing

New Procurement Framework

Closing Remarks

Outline

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INTRODUCTION

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Quality

Time

$Development

Fast Cheap

Good

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KEY POINTS ON PROJECT PROCUREMENT IN IsDB

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www.isbd.org

IsDB Project Procurement

Financing Agreement (FA) and Project Documents govern the legal obligations between a Beneficiary and IsDB regarding procurement financed by IsDB.

The Company has the option to send copy of its complaint to the

Bank, in particular if the complaint has not been fully resolved

The Beneficiary has the obligationto respond and fully resolve the

issues raised in the complaint before actual contract award

Procurement Documents issuedby a Beneficiary and Contractsigned between the Beneficiaryand a Company define the rightsand obligations between bothparties (Governing Documents)

Financing Agreement, PAD, PIASR

BENEFICIARYIsDB

“SERVICE PROVIDER”

–The Stakeholders -

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IDB “ARTICLES OF AGREEMENT” mandates the useof Bank’s managed fund strictly for the: (i) purposeintended with regards to economy and efficiency, (ii) theuse of competitive approach for procurement and (iii)promoting development of Member Countries.

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Empowerment Through Thresholds For Accredited Specialists (FPO, RPO, GPO, Manager)

Strategic Level (PS), On Case By Case Basis (No More “One-Size-Fits-All”)

Compliance But Also Solution Finding Functions

Closer To Clients Through Decentralization And Increased Independence Of The Function

Support Function: Outreach + Capacity Development Through Tools & Training

- HIGHLIGHTS of P5P Main Requirements for IsDB Project Procurement -Future of Procurement Function in IsDB & New ROLE of Procurement Staff

Enhanced Roles During Supervision And Delegation On Project Procurement Plans

Partnership Is Seen As Critical & A need For Robust IT System to Sustain Decentralization

…!...New Requirements on Professional Judgment…!...

www.isbd.org

IsDB Guidelines for Use of Consultants

IsDB Guidelines for the Procurement of Goods & Works

Approval of New Procurement Policies: BED-327 (02 September 2018 & Roll-Out in April 2019)- New Guidelines Aligned With Current Trends And The Needs For IsDB New Decentralized Business Model -

FINAL PRINTS Underway

Roll Out Related Activities:1- Translation + Printing

2- Guidance Notes3- Training Modules

…Policies Approved by BED… …Procedures Approved by VPcp… …New Guidelines…

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www.isbd.org

Modern

Fit for Purpose

Tailored

Respond to Beneficiary Needs

The Future of Procurement in IsDB Financed Projects with the New Guidelines

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www.isbd.org

DIGITIZATION IN PROJECT PROCUREMENTAND

ITS IMPORTANCE IN PROJECT DELIVERY

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Ex Cx P5P

www.isbd.org

• 11 Regional Hubs by 2020• 7 Already established• 4 Dubai, Egypt, Uganda & Suriname

• 14 Field Representatives in MCs

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STAFFING

(CRUCIAL)

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www.isbd.org

NEW PROCUREMENT FRAMEWORK

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www.isbd.org

Nowadays: Extensive Exchanges Involving All Stakeholders

Execution and SupervisionPreparation Approval

Design and planning Selection & Award

Contract Management

MD

B R

esou

rce

Allo

catio

n

Focus of MDBs On High-Value / High-Risk

New Focus

Project Timeline

Professionalization of the Procurement Function

…!...Objective Targetted: Risk Based Approach in Procurement…!...

NEW FOCUS IN THE PROJECT PROCUREMENT CYCLE BY MDBs

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Implications

Being GraduallyAmended

www.isbd.org

Procurement Process… Always By Beneficiary… Will Not Change Much in Near Future…

ALLDone

by BENEFICIARY

…!...

IsDBFiduciary

…!...

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A Person can Hold 1 or + Several Roles

! EXCEPT The PM

A Role can be Held by 1 or + More People

! EXCEPT The PM

ACTORS OF THE PROJECT

WHY THE NEED TO PUT EMPHASIS ON PROCUREMENT

WHEN DEALING WITH ISSUES LINKED WITH “ “?

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Implementation is more and more the . The slightest error or inconsistency in conducting implementation processes or activities can lead to accusations that, even if ultimately proved to be without merit, can cause significant and

of Executing Agencies and even MDBs such as IDB.

!!!...Difference …!!! Private vs Public

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Aid, Governance, and Development Outcomes

Annual Total Costs of Corruption (Including: Bribes, Cartel Pricing, Fraud,Illicit Trade and Money Laundering)

THIS DWARFS THE SPENDING ON:

United Nations Millennium Development Goals - US$60 billion

World Food Program 2008 - US$3.72 billion(146 million people including 62.2 million children)

Haiti Reconstruction (estimate) - US$11 billion

Polio eradication programme (3 year)- US$2.6 billion

US$1 trillion – US$1.6 trillion

COST OF CORRUPTION

Sources: World Bank, TI Global Corruption Barometer 2009, United Nations, The Guardian, World Health Organisation, World Food Program

IMPORTANT

Peter Eigen….

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Preparation Stage

INITIAL PROJECT RISK ASSESSMENT

Validation of Procurement Plan Stage

INITIAL CONTRACT RISK ASSESSMENT

Appraisal stage

UPDATE OF THE PROJECT RISK ASSESSMENT

Implementation Stage

RISK SCORE UPDATED WHEN AND IF NEEDED (Contracts)

Envisaged Steps Incorporating Procurement Risk Assessment

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CLOSING REMARKS

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Education

Information

Credits

Infrastructure

HealthPossible If Sound

ProcurementProcesses

www.isbd.org

Thank you!

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