FCIC COUNTRY SEMINAR: “ISDB’S PROCUREMENT SYSTEM … · IsDB Group Entities Islamic Research &...
Transcript of FCIC COUNTRY SEMINAR: “ISDB’S PROCUREMENT SYSTEM … · IsDB Group Entities Islamic Research &...
FCIC COUNTRY SEMINAR:“ISDB’S PROCUREMENT SYSTEM AND STRATEGY FOR MEMBER COUNTRY FIRMS”
OVERVIEW OF IsDB PROCUREMENT FRAMEWORKMarrakesh, Morocco2nd April 2019
Evolution of IsDB Group
(1975 - 2018G)
1975 1994 1999 2008 2015
Institution has Evolved from Single Entity to a Group of Six Entities
www.isbd.org
IsDB Group EntitiesIslamic Research & Training Institute (IRTI)
Research and training arm of IsDB, Development of the Islamic Financial
Services Industry to support the socio-economic development of MCs.
Activities: training, research, advisory, capacity development.
The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC)
Boost OIC MCs intra-trade Export credit insurance Political risk insurance to
encourage cross-border investment.
Islamic Solidarity Fund for Development (ISFD)Islamic Solidarity Fund for Development (ISFD)Dedicated to fighting poverty in MCs Target Endowment of $10bn
Islamic Corporation for the Development of the Private Sector (ICD)
Promote private sector development Facilitate access to Islamic capital
markets, Mobilize additional financial resources for
private sector, Promote entrepreneurship, and
encourage cross-border investment.
International Islamic Trade Finance Corporation (ITFC)
Facilitate OIC MCs intra-trade Improve access to trade finance
for businesses Provide trade-related capacity
development
www.isbd.org
IsDB Capital Resources
› Authorized:› ID100bn ($140bn)
› Subscribed: › ID50bn ($70bn)
› Authorized:› ID 2bn
› Subscribed:› ID 750m
› Paid-up capital: › ID280m
43 Years AfterInception
1975 2018
› 22 Member Countries › 57 Member Countries
Key Facts about IsDB
Established in 1975 with HQ in
Jeddah, KSA
1,128 staff distributed across entities & regional
hubs
A Unique Model of South-South
Cooperation
Global MDB : Membership: 57
Countries Spreading over 4
Continents
11Regional
Hubs
AFRICA 27
LATIN AMERICA
1ASIA26
EUROPE2
Morocco
Senegal
Indonesia
Kazakhstan
• 11 Regional Hubs to be Operational by 2020• 7 Regional Hubs are established and functioning• 4 Regional Hubs are being established Dubai, Egypt, Uganda and Suriname• 14 Field Representatives in various Member Countries
Turkey
NigeriaMalaysia( CE )Suriname
Bangladesh
Main Products and Services of IsDB GroupScholarship Programs
Special Assistance
Trade Financing & Promotion of Intra-Trade, Regional Integration
Insurance of Investment & Export Credit
Science & Technology Program
Research and Training (Islamic Economics & Finance)
Project Financing(Public & Private)
Development of the Islamic Financial Services Industry
SMEs, Microfinance/ Fund / Asset Management
Capacity Development & Technical Cooperation
www.isbd.org
AAA Credit Rating
“Aaa” & ‘Prime-1’ Short-Term
“Aaa” & ‘F1+’ Short-Term
“AAA” & ‘A-1+’ Short-Term
EU Zero Risk Weight
“Stable” Outlook
“Stable” Outlook
“Stable” Outlook
www.isbd.org
IsDB Group 10-Year Strategy (2015-2025)
Capacity Development1
www.isbd.org
IsDB Footprint in Field
1.SENEGAL Hub Senegal Guinea Bissau Mali Gambia Sierra Leone Guinea Ivory Coast
2.NIGERIA Hub Nigeria Chad Togo Niger Cameroon Burkina Faso Benin Gabon
3.Uganda Hub Uganda Mozambique Djibouti Comoros Somalia
5. KAZAKHSTAN Hub Kazakhstan Tajikistan Uzbekistan Kyrgyz Republic Turkmenistan
4. SURINAME HubSuriname Guyana
6. INDONESIA Hub Indonesia Malaysia Brunei Darussalam
7. BANGLADESH Hub Bangladesh Maldives
8. MOROCCO Hub Morocco Mauritania Algeria Tunisia Libya 9. EGYPT Hub
Egypt Sudan Lebanon Jordan Iraq Syria
10. UAE Hub UAE Pakistan Afghanistan Iran Oman Qatar Kuwait Bahrain
11. Turkey Hub Turkey Azerbaijan Albania
HQ: Saudi Arabia Palestine Yemen
www.isbd.org
IsDB Organizational Structure
Financial Control
Treasury
Investments
Financial Policy, Planning & Analytics
Administrative Services
Human Resources Management
Health Services
Information Management and
Disruptive Technology
Operations Quality & Results
Project Procurement
Project Financial
Management
Director General, Global Practices
& Chief Economist
Economic & Social Infrastructure
Resilience & Social Development
Country Strategy & Cooperation
Islamic Financial Sector Development
Economic Research &
Institutional Learning
Global Partner-ship & Resource
Mobilization
Crowd Engagement & External
Funds Management
Group ShariahBoard
Operations Evaluation
IsDBBoard of Governors
Chairman, IsDBGPresident, IsDB
IsDBBoard of Executive
Directors
Country Relations & Services
Africa & Latin America
Country Relations & Services
MENA & Europe
Country Relations & Services Asia
Decentralization Facilitation
Director General, Country Relations
& Services
Vice President(Administration)
Vice President(Country Programs)
Vice President(Finance) & CFO
Vice President(Partnership
Development)
Legal
Integrity & Ethics
Compliance
General Counsel
Risk Management
Office of the President
Strategy & Transformation
Internal Audit
Ombudsman
Science, Technology& Innovation
Communications & External Relations
General Secretariat
Islamic Solidarity Fund for
Development
Hadi & Adahi Project
Shariah Compliance
Corporate Governance
Partnership Policy and Results
www.isbd.org
Typical Project Cycle • Carried out in the framework of a
“Project Cycle”• Project Cycle shows common
elements of a project and how they relate to each other in sequence
• “Procurement Plan” is critical to ensure smooth procurement process
• Procurement Plan is finalized during preparation phase; executed and updated during implementation
Planning• Procurement Document Procurement• Evaluation & Recommendation• Contract AwardExecution• Deliverables (detail design, etc.)• Construction, supply & installation• Contract ManagementDelivery & Completion• Taking over & maintenance
Procurement Plan
Identification
Preparation
Appraisal
Negotiation -AgreementBoard Approval
Implementation
Evaluation
www.isbd.org
IsDB Procurement Framework
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www.isbd.org
IDB “ARTICLES OF AGREEMENT” mandates theuse of 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.
IsDB Board of Executive Directors,representing all Member Countries, mandates theuse of IsDB Procurement Guidelines (Policies &Procedures) for projects financed by IsDB.
Use of IsDB Procurement Guidelines ismandatory for procurement of contractsfinanced in whole or in parts by IsDB as furtherreflected in Project Documents (PAD, RRP) andFinancing Agreements.
Policy + Procedures & Operational documents(Administrative Instruction - AI, Operational Directives - OD,
Standard Procurement Documents, Guidance Notes – GN, etc.)
– The Overall Procurement Policy Framework -
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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 obligation to respond and fully resolve the issues raised in the complaint before actual contract award
Procurement Documents issued bya Beneficiary and Contract signedbetween the Beneficiary and aCompany define the rights andobligations between both parties(Governing Documents)
Financing Agreement, PAD, PIASR
BENEFICIARY
IsDB
“SERVICE PROVIDER”
–The Stakeholders -
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www.isbd.org
Procurement Process… Always By Beneficiary… Will Not Change Much in Near Future…
ALLDone
by BENEFICIARY
…!...
IsDBFiduciary
…!...
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• Small Contract Packages• Regional Approach to Projects (1 Guideline 1981/1997)
• Consultancy Unit & DACON (1 Officer for clearance)
• Procurement Opinions by Legal Department• Projects Handled by Engineers• Relatively Small Scale Projects
- 1980’s -Earlier Days
1990s – Early 2000s
• Guidelines (Goods & Works + Use of Consultants)
• Procurement Division (1 staff - DM)• Creation of Bids Evaluation Committee
2003-2006
• IsDB Reform (Policy & Procurement)
• Adoption of Matrix System• Guidelines Revised in 2012
IsDB’s HISTORICAL JOURNEY IN "PROJECT” PROCUREMENT
2009
• Upscale ROs + CGOs• Coordination with MDBs• CDD-Type Projects
2013
• Large + Complex Packages• Procurement Analysts• From BEC to OPRC
Up Until December 2017
www.isbd.org
Nowadays: Extensive Exchanges Involving All Stakeholders
Execution and SupervisionPreparation Approval
Design and planning Selection & Award
Contract Management
MDB
Res
ourc
e Al
loca
tion
Focus of MDBs On High-Value / High-Risk
New Focus
Project Timeline
…!...What is aimed At: Risk Based Approach in Procurement…!...
NEW FOCUS IN THE PROJECT PROCUREMENT CYCLE BY MDBs
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IsDB Guidelines for Use of Consultants
IsDB Guidelines for the Procurement of Goods & Works
Approval of New Procurement Policies: BED-327 (02 September 2018)- New Guidelines Aligned With Current Trends And The Needs For IsDB New Decentralized Business
Model -
FINAL PRINTS: APRIL 2019
Roll Out Related Activities:1- Translation + Printing
2- Guidance Notes3- Training Modules
…Policies Approved by BED… …New Guidelines…
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www.isbd.org
New Documents: Overview
Policy
Guidance Notes
Procedures
Standard Procurement Documents
Policy + Procedures = GUIDELINES ( MANDATORY)
Updated Suite of Standard Procurement Documents ( MANDATORY, CAN BE CUSTOMIZED)
About 17 New Guidance Notes Recommended , 6 priorities
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www.isbd.org
1. Procurement Related
Complaints Handling
2. Procurement Plan / Strategy
Document
3. Prior and Post Review
New Documents: Overview GUIDANCE NOTES: To Clarify and Explain Important Topics in the Guidelines
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4. Advanced Contracting and
Retroactive Financing
6. Procurement in Fragile and
Conflict Affected States
New Documents: OverviewGUIDANCE NOTES: To Clarify and Explain Important Topics in the Guidelines
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5. Hands-On Implementation
Support
www.isbd.org
New Documents: Overview
Economy Efficiency Fairness
Effectiveness
VfM
FfP
Core Procurement Principles
Introduction of Value for moneyand Fit for purpose approach in procurement operations
These overarching principles will aid the ability of the Beneficiaries to achieve sustainable development
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www.isbd.org
Modern
Fit for Purpose
Tailored
Respond to Beneficiary Needs
(VfM)
The Future of Procurement in IsDB Financed Projects with the Revised Guidelines
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www.isbd.org
TranslationFrench
& Arabic
New Tool Kits
Training&
Onboarding Process
Update of All Procurement Documents
RecruitmentOf 25 Staff
23 FPOs2 RPOs
1 2 3 4
Critical Steps In Transformation of Project Procurement (PPR)
End Of March 2019 is Cut-Off Date for Exclusive Use of New Guidelines in New Projects
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3 6 24
1
1
1
PPR Setup Following IsDB Decentralization Initiative
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1975
Thank you