Netherlands – World Bank Luncheon December 2, 2014, Washington DC

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70 Years of the World Bank

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Ending Extreme Poverty by 2030 Promoting Shared Prosperity

The World Bank Group: Our ‘Twin Goals’

The World Bank Group

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IBRDInternational

Bank for Reconstruction

and Development

IDAInternational Development Association

MIGAMultilateral Investment

and Guarantee Agency

To promote institutional, legal and regulatory reform

Governments of poorest countries with per capita income of less than $1,045 and/or not creditworthy Technical assistance Interest Free Loans Policy Advice

To reduce political investment risk

Foreign investors in member countries

Political Risk Insurance

Est. 1945 Est. 1960

IFCInternational

Finance Corporation

To promote private sector development

Private companies in member countries

Equity/Quasi-Equity Long-term Loans Risk Management Advisory Services

Est. 1956 Est. 1988

To promote institutional, legal and regulatory reform

Governments of member countries with per capita income between $1,045 and $12,746 and creditworthy Technical assistance Loans Policy Advice

Role:

Clients:

Products:

Role of the Executive Director

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1) Fiduciary responsibility Two board meetings per week; various committees/seminars

2) Representing 13 countries, as well as 13 shareholders (true cooperative):Armenia, Bosnia&Herzegovina, Bulgaria, Croatia, Cyprus, Georgia, Israel, Macedonia, Moldova, Montenegro, The Netherlands, Romania and Ukraine

3) Convening power/’business development’

The World Bank Organizational Structure

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• 16,438 staff (of which 12,432 IBRD/IDA)• Open-ended

contracts: 44%• HQ: 64%; Country

Offices: 36%

• 145 Country Offices

• 18,241 short-term consultants (one or more days per year)

• 174 Nationalities

• Financing and technical expertise around the globe

New WB Organizational Structure (since July 1, 2014)

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14 Global Practices Should Deliver Local Solutions

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Matchmaking: Global Practices meet topsectors

Topsectors1. Water 2. Horticulture3. Agri & food 4. Life sciences &

health 5. Energy

6. Logistics

7. High tech 8. Chemicals 9. Creative industries

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Global practices1. Water (Junaid Ahmad)

2. Agriculture (Jurgen Vogele)

3. Health, Nutrition, and Population (Tim Evans)

4. Energy and Extractives (Anita George)

5. Trade and Competitiveness (Marcelo Giugale)

6. Transport and ICT (Pierre Guislain)

7. Environment and Natural Resources (Paula Caballero)

8. Education (Claudia Costin)

9. Finance and Markets (Gloria Grandolini)

10. Macroeconomics and Fiscal Management (Marcelo Giugale)

11. Poverty (Ana Revenga)

12. Social Protection and Labor (Arup Banerji)

13. Urban, Rural, and Social Development (Ede Ijjasz-Vasquez)

14. Governance (Mario Marcel)

Cross-cutting Solution Areas Should Connect Development Priorities and WBG Strategy

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The World Bank Group Strong Lending Increase in FY14

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The World Bank Group Commitments - New Business (in billions of dollars)

• WBG commitment volume to clients increased from US$58bn in FY13 to $66bn (+12%)

• IBRD commitment volume to clients totaled US$19bn (+21%)• IDA commitment volume to clients totaled US$22bn (+27%)• IFC commitment volume to clients totaled US$17bn (-.05%)• MIGA commitment volume to clients totaled US$3bn (no change)• TF commitment volume to clients totaled US$4bn (- 20%)

Source: worldbank.org/en/about/annual-report

IBRD IDA IFC MIGA TF0

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15

20

25

FY14FY13

The World Bank (=IBRD/IDA)commitments by region in FY14

12Source: worldbank.org/en/about/annual-report

IBRD and IDA Top 5 Borrowing Countries in

FY14

13Source: worldbank.org/en/about/annual-report

In millions of dollars

IBRDCountry Commitme

nt

IDACountry Commitme

nt

Brazil 2,019 India 3,134

India 1,975 Pakistan 2,218

China 1,615 Bangladesh 1,888

Ukraine 1,382 Nigeria 1,698

Romania 1,374 Ethiopia 1,624

The World Bank (=IBRD/IDA)commitments by sector in FY14

14Source: worldbank.org/en/about/annual-report

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World Bank Group: Challenging organization

• Complex: 5 entities, 6 regions, 14 global practices, 5 cross-cutting solutions areas, 25 Executive Directors, 188 Governors

• Competitive:Global competition: American, Brazilian, Chinese, Dutch, English, French, German, etc.

• Country-driven:Go Local!

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World Bank offers 3 ‘products’ for private companies

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1. Funding: IFC (loans, equity) and insurance (MIGA)IFC: accelerator in local value chains; MIGA: credit enhancement for international banks

2. Corporate procurement: consultancy, equipment“Input/upstream” in DC: mainly consultancy contracts, HQ-sourcing and policy setting

3. World Bank financed projects“Output/downstream”: largest impact and volumes =) GO LOCAL

Partnering with the World Bank Group requires long term strategic engagement!

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Country Assistance StrategyCountry Assistance Strategy

Project IdentificationProject Identification

Project PreparationProject Preparation

Project AppraisalProject Appraisal

Loan NegotiationsLoan NegotiationsLoan Approval and SigningLoan Approval and Signing

Project SupervisionProject Supervision

ImplementationImplementation

EvaluationEvaluation

World Bank/‘staff’ activity Joint activityCountry/’borrower’ activity

Country Partnership FrameworkCountry Partnership Framework

Business Opportunities inBank-Funded Projects:

Project Cycle

World Bank

Companies

Government ProjectManageme

nt Unit

• Procurement Rules• Information

Dissemination• Complaints

• Project Implementation

• Contractual Relation

• Country Partnership Framework (CPF)

• Contractual Relation

The World Bank has NO contractual relationship

with companies

Tips to ensure competitiveness

• Monitor advertisements systematically- start early and have stamina

• Identify local partners, sub-consultants or possible associations• Be informed about the country, project, processes and

competition• Assess the market – compete where YOU are competitive• Solve the client’s problem - don’t impose your view. Consultants :

Conduct a pre-proposal visit (if indicated in RFP) Fully address TOR Offer qualified consultants or key expert staff positions Assign a strong project manager Cite directly relevant technical and regional experience and

prior experience with similar assignmentsGoods and Works :

Understand local customs, laws and markets Respond adequately to technical specifications Unclear? Contact implementing agency to address any need

for further clarifications, do NOT guess or assume

Procurement Policy Review

• Value for money is critical to development• Informed by market-focused Procurement Strategy for

Development • Expanded options to apply non-price attributes

With minimum criteria for quality Scoring method to evaluate non-price aspect of the bid Weighted against a scoring model for total cost

• Bidding documentation to specify upfront logical, clearly articulated, comprehensive and relevant criteria

Presentation of draft policy to CODE/ Audit Committee

Multi-stakeholder consultations

Submission of final policy for Board

approval

Procurement Policy Review Timeline

FY15 Q1

FY15 Q2

FY15 Q3

Procurement Policy Review

Proposed changes

• Reorganization of the current Procurement Guidelines into a modern procurement framework with clear roles and responsibilities

• Updated procurement techniques that are market-centric

• Stronger focus on fiduciary and project risk management that will allow for better targeting of Bank resources

• More targeted initiatives to support country capacity building

• Strategic engagement with key suppliers to improve overall performance

• Centralized complaint monitoring and tracking

What will NOT Change

• The Bank Procurement Framework will remain the default procurement mechanism for Bank operations

• Adding to and restructuring the current mandatory regulations

• The framework will remain fully committed to risk management, country procurement capacity building, and the application of good practices such as the standard bidding documents (SBDs)

• Fraud and corruptions guidelines will remain in force

consultations.worldbank.org/consultation/procurement-policy-review-consultations

Let the Dutch embassy help you!

• Blog NL for WorldBank at www.nl4worldbank.org • New and interesting projects (with main focus on Dutch

partnercountries and/or Dutch ‘high potential’ sectors, i.e. the Topsectoren);

• Tenders in eConsultant2 (corporate procurement and consultancies);

• Background documents about the World Bank and the handbook Zakendoen met de Wereldbank Groep;

• Twitter account @NL4WB For latest updates and news about the World Bank, and about relevant

work of Dutch organizations doing work for the World Bank.

• Quarterly Newsletter NL for World Bank.

• Contactpersons: Bouke Berns (bt.berns@minbuza.nl), Vincent Kooijman (vincent.kooijman@minbuza.nl)

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Disclaimer: This presentation does not represent the official World Bank Group’s positions and is confidential as it reflects Board discussions.

 

Frank Heemskerk Mark van der Velden Daan MarksExecutive Director Senior advisor Advisorfheemskerk@worldbank.org mvandervelden@worldbank.orgdaanmarks@worldbank.org

The World Bank1818 H Street N.W.

Room MC13-433Washington, D.C. 20433, USA

Tel.: + 1-202-458-2052Fax.: + 1-202-522-1572

website: www.worldbank.org/eds19