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 svoyadzis@pfdusllc.com Thank You! This presentation is the property of PFD Group. Any use without the explicit agreement by PFD Group is illegal. This presentation is protected by professional privilege. Please do not forward it or copy its content.