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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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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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…!...
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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 & 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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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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• 11 Regional Hubs by 2020• 7 Already established• 4 Dubai, Egypt, Uganda & Suriname
• 14 Field Representatives in MCs
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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
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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
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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
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….
www.isbd.org 24
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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