How to Do Business with the World Bank/IFC, Inter- American Development

How to Do Business with the
World Bank/IFC, InterAmerican Development
Bank, & Millennium
Challenge Corporation
(MCC)/USA
The Reality—The Dos &
Don'ts
WB PSLOs WS Program
Washington D.C.
June 11, 2013
We now know it all about the WB/IFC, their
procurement process, next: we will
know it all about W and S, IDB and MCC.
Being in the private sector: How to go about getting
into this market, or staying in this market and
increasing shares?
My assumptions:
1. You know it all about the IFIs and their simple,
very simple procedures…….
2. You know where to find the information about
country/project of interest……
What is Next?---2
The MDBs/MCC procedures:

All IFIs—About similar process for deciding what to
do/work on in a partner (developing/emerging
economy) country: CAS/WB/IADB/all MDBs,
Compact/MCC—3-5 years investment plans:
objectives, projects, amounts.

Start up information on project, PIDs/MDBs, GPN—
MDBs/MCC, PADs, SPNs
What is Next?---3

Depending on whether supplies, works or TA: SPN,
prequalification/short listings, tenders—in case of TA the
technical and financial proposal—the 80/20 rule…..
Who makes the decisions on tenders?
--Evaluation Committees?
--Recipient country?
--MDBs/MCC?


The role of each…..Confusion?
What is Next?---4
Where to get the project information?

UNDB, DG, WB PSLO Website (Country Reports),
Private providers….

If anything too much information/flooding/need to
zero-in on projects of interest, contract awards,
competition etc……
There are two ways:
The cowboy shooting from the hip
approach
—How? GPN, SPN, pre-selection if any,
tender = win


The methodology:
The Golden Formula…..
Can be very quick but short term and medium term—an
initial investment of about 12-18 months in time and cost.

The PFD Group formula: 7/3/1

The project cycle—when to intervene and when not

What are the ingredients and the recipe for winning and
who makes the final contract award decisions?
The Project Cycle
The Ingredients for Winning….

Management decision to limit business and geographic areas to
those with highest chances to win— THREE main decision
factors:
1.
Focus, focus, focus, focus; focus and ---5 X FACTOR
2.
References, references, references-, references--4 X FACTOR
3.
Implementation/Delivery, Implementation/Delivery,
Implementation/Delivery---3 X FACTOR
4.
Luck—0 X FACTOR, yet……
The Ingredients for Winning….

Review IFI markets in your targeted business and geographic areas
including CASs and sector reports

Choose the first 14-20 business options—mix of short term and long
term

Form best internal to company and external (international and local
companies WITH COMPLEMENTARY REFERENCES) teams for
first 2-3 business options for which tenders are expected in next 2-3
months and go get them…….
BY REGION
Table IIIB
IBRD Top Ten Borrowers │ Fiscal 2012
millions of dollars
3,500
3,000
2,500
2,000
1,500
1,000
500
0
IDA Top Ten Borrowers │ Fiscal 2012
millions of dollars
3,000
2,500
2,000
1,500
1,000
500
0
Largest Share of IDA Lending went to Africa
Share of total lending of $14.8 billion
South Asia
36%
Africa
50%
Middle East
and
North Africa
Latin America
1%
and
Europe and
the Caribbean Central Asia
3%
2%
East Asia and
Pacific
8%
Africa Regional Snapshot
Africa Regional Snapshot
Africa
Africa
Water Projects & Programs

The World Bank is the largest external source of
financing for water projects--US$7.5 billion in FY11,
comprising 53% for water supply and sanitation, 12.5%
for irrigation and drainage, 23.5% for hydropower, and
9.9%for flood protection. The Water practice includes
World Bank operations, the Water unit, the Water
and Sanitation Program, the Water Partnership
Program, the Cooperation in International Waters in
Africa, and the Southern Africa Water Initiative.

Research each program above……
The Ingredients for Winning….





Get max possible “intelligence”—technical and financial from: IFI HQ,
IFI Country mission, Government authority, government utility in
charge, identify international and local partners, follow up all along…..
“Intelligence gathering” a two way street…..
The importance of local partners……Share of contracts awarded to
local companies….
The importance of “Lessons Learned” and resolution—needed for
supplies, works and TA
Top engineering approach and methodology: is it enough to win?
The Ingredients for Winning….

Start preparing early for the prequalification, if such step is needed

Start preparing early for the tender

The “story line” of the EOI and Tender, where applicable
The Ingredients for Winning….

Critically review quality of all tender documents. Peer review?.

Sexy documentation, a plus? Need for a super Editor?

Win or lose---Need for post mortem—open and candid
The Ingredients for Winning….

Negotiations and contract award/signature


Is there corruption? What to do?
The not to be list
WB: 100,000 contracts/500 viral cases per year

Implementation and payments problems—daily routine?

The Ingredients for Winning….

Bottom line for winning: a top quality tender and a super
good price

Financials Offer? Bottom line: as low as possible but
with which goods/supplies/services can be delivered
with chin up and reputation of company untarnished.
Contact
The PFD Group
818 18th Street, NW, Suite 1010
Washington, D.C. 20006
USA
Tel. + 1 202 785-0052
+ 1 202 785-0053
Fax + 1 202 521-0596
Email:
Spiros Voyadzis
[email protected]
Thank You!
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