Consultant Opportunities with the EBRDMs Dilek Macit

Director

Consultancy and Corporate Procurement Department

Mr Andrea Baldan

Head of Operations

Consultancy Services Unit

Trieste (I), Wednesday 26th September, 2012

6 things you need to know…

… in order to be successful in providing consultancy services to the EBRD

5 “W”s

1. “Why” does EBRD need consultancy services

2. “Where” does EBRD operate and are services needed

3. “When” are consultancy services needed

4. “What” kind of consultancy services are needed

5. “Who” are the key players in EBRD and their roles(and “whom” are you offering your services to)

…and 1 “H”

1. “How” does EBRD select consultants (incl eSelection)

1. why?

EBRD finances projects in both private and publicsector, providing direct funding for financialinstitutions, infrastructure and other key sectors.

The Bank’s investments also help to developskills, improve efficiency and strengtheninstitutions.

Within this framework consultancy services areprovided to support the Bank’s operations andprojects.

Bank’s operations

Value of Contract Awards in 2007-2011

0

50

100

150

200

2007 2008 2009 2010 2011

EBRD € million consultancy contracts awarded

0

5

10

15

20

2007 2008 2009 2010 2011

€ million awarded to Italian consultants

“why” should you be interested

Year

EBRD total €million

consultancy contracts

€ million to Italian

consultants

% to Italian consultants

EBRD total number of contracts

Number to Italian

consultants

2007 136 4 3% 2,377 165

2008 120 5 4% 2,434 206

2009 137 6 4% 2,821 177

2010 175 5 2% 2,820 191

2011 169 16 10% 2,797 166

2. where?

Where we operateMay 2012

more than half bankers based in the regions

“where”: Contracts Awarded per Country(share of value) in 2011

Russian Federation17%

United Kingdom10%

Regional*10%

Ukraine10%

Turkey6%

Romania6%

Kazakhstan5%

Georgia4%

Serbia**3%

Moldova3%

Mongolia3%

Poland3%

Bosnia and Herzegovina

3%

Kyrgyz Republic2%

FYR Macedonia2%

Other13%

3. when?

ProjectPreparation

ConsultancyServices

Project Implementation Consultancy Services

“when”: Consultancy Services and project cycle

InitiationFinal repayment

Concept clearance

Concept/ structure review

Final review

Signing

Disbursements

Repayments

[Sale of equity]

Final maturity

Board approvalPublication of Project Summary Document

Publication of Board approved Projects

4. what?

“what”: type of Consultancy Services

To assist the Bank’s Clients with:

Project Preparation e.g. feasibility studies, project design,environmental impact assessment

Project Implementation:• capacity building, institutional development, eg. project implementation

units – role of a partner

• project supervision: Independent Engineer – very clearly definedcontractual role

To assist the Bank with:

due diligence (technical, financial, environmental, integrity etc)

project monitoring, lenders technical supervisor

Policy dialogue / legal reform

Technical Co-operation Funds from:• Italian Technical Cooperation Fund (tied)

• Shareholders’ Special Fund established with the Bank’s netincome, operational since July 2008

• Other untied Donor funds (e.g. Japan, Sweden, Norway, MultiDonor Fund for Early Transition Countries, European Union),Western Balkans Fund

Bank Administrative Budget

Loan Proceeds

“what”: funding sources available to Italian Consultants

Contract Awards by Funding type

Focus on:

• Initiatives to address economic crisis• e.g. FI Institution Building and Targeted Crisis Response Framework

Facilities, Trade Facilitation Programme Crisis Response Trainingprogrammes, Risk Management Advice

• Sustainable energy financing facilities incl. renewableenergy and climate change

• Infrastructure including Municipal and EnvironmentalInfrastructure & Transport and PPP’s

• Support institution building and training• e.g. Turnaround Management Programme (TAM), Business Advisory

Services (BAS), TAM/BAS Crisis Response Programme, Legal TransitionProgramme (LTP); Policy Dialogue

“what”: Technical Co-operation

“what”: an example of Municipal and Environmental Infrastructure (MEI) Sector

The MEI sector covers:• direct revenue earning services

• water supply, waste-water collection and treatment,

solid waste management, district heating, natural

gas distribution and urban public transport

• Infrastructure

• urban roads, environmental clean-up operations

• Environmental services, such as industrial and

hazardous waste management, that may be organised

nationally or outside local government responsibility.

“what” MEI Standard Consultancy Assignments and Types of Specialists

1. Financial Audit (auditors)

2. Feasibility Study (sector engineers, environmental, financial, legal experts)

3. Environmental Impact Assessment (environmental experts)

4. Financial and Operational Performance Improvement Programme (FOPIP) - (financial, management information system, corporate restructuring experts)

5. Legal Due Diligence - (legal experts)

6. Financial Due Diligence (financial experts)

7. Corporate Development Programme (financial, legal,

management information system and IT, business planning experts)

8. Project Implementation Unit; Procurement

Assistance (procurement experts)

9. Creditworthiness Enhancement Programme (financial,

legal, sector regulation experts)

10. Public Service Contract (legal, corporate, financial experts)

“what” MEI Standard Consultancy Assignments and Types of Specialists

5. who?

“who”: www.ebrd.com

About us

• What we do

• Who we are

• Where we are

• Who we work with

• (…)

Procurement Notices

(see next slides!)

Working with us

• Project financing

• Procurement (see next!)

• Trade Loan syndications

• Advice and support

• Jobs at the EBRD

• Projects

• Countries

• Sectors

“who”: procurement in ebrd.com

Consultancy

Services

- Consultant opportunities

(procurement notices)

- eSelection

-Data & reports

“who”: Consultancy Services Unit (CSU)

technical advice and operational support to the Bankand its Clients when selecting and engagingconsultants.

responsible for compliance with the Bank’sProcurement Policies and Rules with donors’ rules.

chairs evaluation Committee’s for selectingconsultants (Bank selected) and approvesevaluation recommendations (Client selected) with asupervisory and procedural role

“who”: Banking department

Banking carries out EBRD’s lending and investment

operations; consultancy services are used to support

these operations

When consultancy services are for the benefit of the

Bank, Banking members are key players in project

preparation, consultants selection manage the

consultants during delivery of the services

“who”: the Client’s role

select consultants where the Client is the main beneficiary ofthe services (mostly project implementation)

responsible for all aspects of the procurement of contracts:• invites, receives, evaluates tenders, awards contracts

• consultancy contracts between the client and the consultant.EBRD channels TC funds through a grant agreement with theClient.

The Bank reviews and monitors the tender process, assists incontract administration, pays consultants once Client approvesinvoices.

“who”: the contracting structure

EBRD

Grant Agreement

CLIENT

CONSULTANT

Consultancy Contract

Approving Invoice

Invoice

Payment

Italian Consultants: Lesson learned

Audentes Fortuna iuvat

but give Fortuna a little

help:

participate to EBRD opportunities!

how?

“How”

• How does EBRD or its Clients

select consultants?

• Strategy for winning contracts

• (eSelection for Consultants)

Procurement Policies and Rules (PP&R)

• Revised Procurement Policies & Rules (PP&R) May

2010

• fundamental principles of non-discrimination, fairness

and transparency

• Harmonisation with other International Finance

Institutions (IFIs)

• New thresholds for consultant selection procedures

Procurement Policies and Rules (PP&R)

Section 5.1 of Bank’s PP&R:

“The main concern when

choosing consultants should be the

quality of the services provided.”

Main Selection Methods (1)

QUALITY-BASED SELECTION:

No consideration of price during selection, highest-

ranked Consultant is invited to negotiate the

contract, generally for

(i) very complex assignments which can be carried

out in substantially different ways and cost

proposals may not be comparable

(ii) assignments with large downstream impacts

(iii) contracts below EUR 300,000

Main Selection Methods (2)

QUALITY- AND COST-BASED SELECTION:

Selection based on quality (approx. 80%) and price (approx. 20%), for

(i) standard assignments

(ii) scope of services are well defined and parties can estimate with reasonable precision the required input, staff time, duration etc.

(iii) contracts above EUR 300,000 if standard and not complex

Overview of Selection Procedures for Consultant

Selection (EBRD or Client)

Direct

Selection(quality-based selection, less than EUR 75,000)

Selection from

Shortlist(quality-based selection,

EUR 75,000 – EUR 300,000)

Evaluation of

Proposals(quality- & cost-based selection,

EUR 300,000 and over)

Select consultant

Negotiations

Contract

Call for expressions of interest

Long list

Shortlist

Select consultant

Negotiations

Contract

Call for expressions of

interest

Long list

Shortlist

Proposal (tech & fin.)

Select consultant

Negotiations

Contract

Contract Awards* (share of value)

by Consultant Selection Method

* Including contract awards by OGC,

Small Business Support Programme and loan funded contract awards by the Bank’s clients

• Quality-based selection (less than EUR

75,000)

• The Executing Agency (EBRD or Client)

selects without competitive selection

• Bank may negotiate on budget, team

composition and contractual terms

• How does the Client or Bank choose for direct

selection? How can consultants improve their

chances of being awarded Direct Selections?

Selection Procedures: Direct Selection

• Quality-based selection (EUR 75,000 – EUR 300,000 for firms and EUR 75,000+ for individual experts)

• Generally begins with a “Procurement Notice” requesting expressions of interest on the Bank’s Website

• The Shortlisting Committee creates a shortlist of firms who are ranked according to technical merit

• The top ranked firm is sent the Terms of Reference (ToR) and invited to submit a workplan and budget

• When negotiations are successful, contract is awarded

• If negotiations fail, second ranked firm is contacted

Selection Procedures – Selection from Shortlist

• Quality- & cost-based selection (EUR 300,000 and

over)

• Procurement Notice and shortlisting of firms

1. generally between 3 and 6 firms

2. normally no more than 2 consultants from the same country

3. normally requires at least one qualified consultant from one of the

Bank’s Countries of Operation

• Shortlisted firms are sent the Request for Proposal

(RFP) package

Selection Procedures – Evaluation of Proposals

RFP 4 (Evaluation Criteria) Key

Points:1. Firm’s project experience

2. Methodology, work plan,

3. Calibre/CVs of experts

4. Local language, local presence/input

5. Financial proposal generally 20%

Selection Procedures – Evaluation of Proposals

Selection & Contracting – Timeframe

Always depends on

circumstances of

individual case (could be

longer if Client

selects/contracts which

is not fully familiar with

EBRD standard

procedures)

Direct

Selection

7 - 14

days

Selection

from

Shortlist

5 - 7

weeks

Evaluation

of Proposals

4 - 6

months

Clarifications and Debriefing

• Before deadline for submission expires, request

clarifications from Bank or Client

• If unsuccessful you may ask for a debriefing when

selection process is completed

• Complaints to be sent to Bank or Client with a copy to

the Director of the Banking Department Team and the

Director of the Procurement Department

• General considerations:

• What is level of competition? Be selective – do you

have any comparative advantage?

• Who will select/contract? EBRD or the Client? Is

addressee “banker or municipality”?

• One step (selection from shortlist on basis of

expressions of interest only) or two steps

(expression of interest and request for proposals)?

Strategy for Winning Contracts

One step after the other:

1. Focus on smaller assignments first (the first contract with EBRD enables you to demonstrate your excellence)

2. The expression of interest (EoI) matters (starting point)

3. Carefully assess submission requirements / evaluation criteria

• Procurement Rules (e.g. Conflict of Interest?)

• Eligibility

• Deadlines

• Cost Estimate?

• Specific submission / evaluation requirements?

Strategy for Winning Contracts

• What are the specific submission requirements/evaluation criteria for EoIs/proposals?• Project references: Previous similar project experience?

Similar budget/duration? Similar services/objectives/ activities? Similar country/region?

• Key experts/CVs: Relevant previous professional experience? Language requirements? How many key (!) experts?

• For proposals: Methodology, comments on Terms of Reference (“ToR”), workplan

• Pay attention to detail! Is your expression of interest/proposal responsive?

Strategy for Winning Contracts –Assess Notice & Evaluation Criteria (1)

Be pragmatic when drafting EoI or proposal

Main objective is

• to address the requirements in the procurement

notice or Request for Proposal package and to be

awarded the contract

Main objective is not

• to describe how to successfully carry out the

assignment in the technical proposal

Strategy for Winning Contracts –Assess Notice & Evaluation Criteria (2)

Be realistic – can you match the

submission/evaluation criteria? If not, consider

• consortia or sub-contracting opportunities,

identify potential local, regional or international

partner firms to complement your firm’s

strengths (know-how, project references, key

experts)

• engaging external experts to satisfy

requirements related to key personnel

Strategy for Winning Contracts –Join Forces (1)

• Know the market. Research and assess:

(1) Contracts awards

(2) Previous shortlists for similar assignments

(3) Statistics

• EBRD information available in www.ebrd.com

• Also check similar webpages of EU, World Bank, IFC etc.

Strategy for Winning Contracts –Join Forces (2)

The key is to enable the evaluators to quickly and easily

find and assess the relevant information

Remember Blaise Pascal who wrote:

“I would have written a shorter letter but I did not have

the time!”

Strategy for Winning Contracts –“Be Kind to the Evaluators” (1)

• Consider your application from perspective of evaluation committee - are you able to easily assess your firm’s strengths and compliance with evaluation criteria?

• Submit documents that are1. tailored (adapt your regular standard documents)

2. focussed (all key points/evaluation criteria addressed?)

3. concise (table of content, clear structure & headlines, easy to assess, short sentences, use tables instead of running text when appropriate etc.)

4. accessible (submit one pdf-file not many)

Strategy for Winning Contracts –“Be Kind to the Evaluators” (2)

• Do not submit financial offer when selection is based on quality (unless otherwise requested), in particular never add financial offer to EoI!

• Seal financial offer (ensure confidentiality!) –eSelection “locks” the financial offer

• Do not apply if your firm is not eligible (check eligibility clause in notice)

• Do not submit late

• Do not liaise with EBRD/Client after publication of notice (apart from requests for clarifications via instructions)

• Do not stay silent on conflict of interest!

Strategy for Winning Contracts –Avoid the Big Don’ts

• Monitor developments in the

relevant sector/country, by

donor/IFI

• Monitor EBRD’s website for

‘Procurement Opportunities’

• Subscribe to EBRD eSelection and

procurement alerts

Strategy for Winning Contracts –Be Up to Date

Information available under EBRD Procurement

• EBRD’s new projects

• Project pipeline and executing agencies

• Lists the latest public and private sector projects

approved by the EBRD

• Procurement notices for consultancy assignments

• Consultancy contract awards

and shortlisted consultants

• Major contracts that were

awarded in operations financed by the EBRD

(These pages are

regularly updated)

“how” does EBRD select consultants

eSelection

for

Consultants

eSelection for Consultants

This is a web based application intended to provide:

• More transparency

• More efficiency

• Wider participation in competition

• Level playing field

eSelection: Benefits for Consultants

• Subscribe for electronic notification about new

opportunities by industry sector and area of expertise

to increase competition

• Submit expressions of interest & proposals (including

financial proposals) on-line/electronically

• Consultant can view the status of application, manage

participation in selection processes and monitor the

progress of any selection process

• Cost reductions as a result of on-line submissions

eSelection -https://eselection.ebrd.com/suite/

Sends email with link to reset password

Register here

Click here to view procurement notices

Send a query or request assistance

“who” to contact in EBRD

Project enquiries (existing EBRD projects only) Tel: +44 (0)20 7338 6282 / fax: +44 (0)20 7338 7380

Business Development and project proposals Tel: +44 (0)20 7338 7168 / fax: +44 (0)20 7338 7380

General enquiriesTel: +44 (0)20 7338 6372 / fax: +44 (0)20 7338 6690

Procurement opportunitiesvia web site: www.ebrd.com

PublicationsTel: +44 (0)20 7338 7553 / fax: +44 (0)20 7338 6102

Consultancy Services UnitTel: +44 (0)20 7338 6124 / fax:+44 (0)20 7338 7451

eSelection Tel: +44 (0)20 7338 7307 / Fax: +44 (0)20 7338 7451

Questions?

“He must be very ignorant

for he answers

every question he is asked.”

Voltaire

Thank You!

Mr Andrea Baldan

Head of Operations

Consultancy Services Unit

� BaldanA@ebrd.com

℡℡℡℡ +44 (0)20 7338 7307

���� +44 (0)20 7338 7451

Ms Dilek Macit

Director

Consultancy and Corporate Procurement

Department

� MacitD@ebrd.com

℡℡℡℡ +44 (0)20 7338 6863

���� +44 (0)20 7338 7451