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Annual Procurement Review ANNUAL PROCUREMENT REVIEW 2013 Prepared by The Procurement Department April 2013 ab0cd Executive summary This report, prepared by the Procurement Department (PD), reviews public sector procurement contracts signed in 2013, funded and/or administered by the Bank and procured by the Bank’s clients. A separate section (2.10) covers the procurement activities of the Nuclear Safety Department (NSD). A total of 269 (excluding NSD contracts) contracts were signed by the Bank’s clients in 2013. The total value of these contracts amounted to €1.270 billion for which EBRD’s own financing totalled €878 million. In comparison with 2012, this represented a substantial increase in terms of the number of signed contracts (by 30 per cent) whilst maintaining the same level of the total contract value. Co-financed contracts in EU member countries represented 36 per cent of the total number of co-financed contracts and 45 per cent of the total value of all co-financed contracts. Out of the 56 contracts signed in EU countries 45 were co-financed with EU cohesion funds. Public sector contracts awarded through open tendering represent 98 per cent of the number of contracts and 99 per cent of the total contract value when consultancy services contracts and alternative procurement procedures are excluded for which the Bank’s open tender procedures do not apply. In 2013, the average contract value was €4.7 million and the average EBRD financing was €3.3 million per contract. The largest contract was the “Supply of electric multiple units for Serbian Railways”. This goods contract was signed with a value of €99 million (fully financed by EBRD). On average, 3.9 tenders were submitted when open tendering procedures were applied. Entities from the following five countries were most successful in terms of highest total contract value, regardless of procurement method: Romania (€189 million), Germany (€155 million), Morocco (€122 million), Spain (€121 million) and Poland (€109 million), which together won a total of €696 million or 55 per cent of the total contract value. Out of the overall 880 tenders that were submitted, which is a significant increase compared with 2012 (615), 77 per cent were submitted by tenderers from countries of operations. Entities from EBRD’s countries of operations won 225 contracts (84 per cent of all contracts) with a total value of €738 million (58 per cent of the total contract value). The data shows that cross-border tendering is at a very high level (36 per cent) and 30 per cent of all contracts were won by firms competing in another country. As expected there is a slight increase in the number of contracts procured using alternative procurement procedures. This is predominantly due to increased procurement activities under the RC2F project in Romania co-financed with the EU cohesion funds. The number of procurement complaints received by the Bank decreased significantly from 23 to 13. Abbreviations CRA Contract Review and Awards System FIDIC International Federation of Consulting Engineers HOP Heads of Procurement IFI International Financial Institutions. LTT Legal Transition Team MDB Multilateral Development Bank MEI Municipal and Environnemental Infrastructure NSD Nuclear Safety Department OCE Office of the Chief Economist OCCO Office of the Chief Compliance Officer OGC Office of the General Counsel PD Procurement Department PCC Procurement Complaints Committee PP&R Procurement Policies and Rules SPS Senior Procurement Specialist TC Technical Cooperation TC Team Technical Cooperation Team WB World Bank Table of Contents 1. Introduction ................................................................................................................ 4 2. Analysis of public sector procurement data ............................................................ 2 2.1 Volume and nature of contracts ............................................................................... 2 2.2 Analysis by sector ....................................................................................................... 4 2.4 Analysis by type of contract ...................................................................................... 9 2.5 Listing of contracts by country of operation ........................................................... 9 2.6 Analysis of contract award by country of origin of the tenderers ......................... 9 2.7 Contract award process ........................................................................................... 10 2.8 Level of participation ............................................................................................... 11 2.9 Public sector procurement under sub-sovereign projects ................................... 15 2.10 Nuclear Safety Department ..................................................................................... 15 2.11 Alternative Procurement ......................................................................................... 17 3. Compliance and integrity ........................................................................................ 18 3.2 Prohibited practices ................................................................................................ 28 3.3 Independent procurement reviews ......................................................................... 28 Annexes: 1) Listing of Contracts by Country of Operations (Value in €) 1a) Listing of signed Contracts by Country of Operation (€ Value) – Level of Bank Financing 1b) Listing of signed Contracts by Country of Operation (€ Value) Bank administered grants 2) Awards by Country of Origin of the Tenderers (Value in €) 3) Awards by Country of Origin of the Tenderers (Number) 4) Awards by Country of Origin of the Tenderers (Value in € by Contract Type) 5) Awards by Country of Origin of the Tenderers (Value in € by Procurement Method) 6) Contracts Awarded by Country of Origin of the Tenderers 7) Distribution of Tenders Submitted by Country of Operations and by Business Sector 8) Distribution of Tenders Submitted by Country of Origin of the Tenderers and by Country of Operations 9) Distribution of Tenders Submitted by Country of Origin of the Tenderers and by Business Sector 10) Contracts for Nuclear Safety Managed Funds 11) Contracts entered after the freeze date of 31 January 2014 Annual Procurement Review 2013 1. Introduction This report, prepared by the Procurement Department (PD), reviews public sector procurement contracts signed in 2013, funded and/or administered by the Bank and procured by the Bank’s clients and entered in the CRA in 2013. A separate section (2.10) covers the procurement activities of the Nuclear Safety Department (NSD). This report covers goods, works and consultancy contracts financed under public sector financing. It does not cover consultancy contracts for the Bank’s own needs, those financed through Technical Cooperation (TC) funds, those awarded by the Office of the General Counsel (OGC), or contracts for goods and services for the Bank’s own needs. Information on these contracts are provided in the reports on Engagement of Consultants by the EBRD issued by the Technical Cooperation Team (formerly the Consultancy Services Unit), and in the Annual Corporate Procurement Review, issued by the Corporate Procurement Unit (CPU). It should be noted that consultancy contracts in this report are also reported in the Engagement of Consultants by the EBRD report. Annexes 1 to 11 of the Annual Procurement Review 2013 contain the statistical data for these public sector procurement contracts during 2013. The analysis of this data, as well as the main procurement activities of the PD (section 4), can be found in the main body of this report (with the exception of Annex 11). Sections 1-3 of this report (not section 4) as well as the annexes will be published on the Bank’s website. Notes on Annex 11 Not included in the analysis of this report are contracts signed in 2013 which were entered into the CRA system after the data was frozen for the purposes of the production of this Annual Procurement Review. 2. Analysis of public sector procurement data 2.1 Volume and nature of contracts A total of 269 contracts (excluding NSD contracts) were signed by the Bank’s clients in 2013. The total value of these contracts amounted to €1.270 billion for which EBRD’s own financing totalled €878 million (see Annex 1 for the listing of contracts by country of operations). In comparison with 2012, this represented an increase in terms of the number of signed contracts (by 30 per cent) and a decrease of the total signed contract value (of 0.5 per cent). Table 2.1.1a illustrates the number of public sector contracts signed between 2009 and 2013. Table 2.1.1b demonstrates the overall contract value as well as the portion financed by the EBRD between 2009-2013. Over the past five years, a total of 884 contracts have been signed with a total value of €6.225 billion of which the EBRD financed €3.963 billion. 2 Co-Financing The EBRD financed €878 million of the total contract value €1.270 billion in 2013. The balance of €392 million was provided by other sources, such as other financial institutions (IFIs, EU Agencies, bilateral donors etc.) or by the borrowers themselves. In comparison with 2012, a 31 per cent decrease of the total value provided by other sources can be noted. In 2013, 156 of the 269 contracts (58 per cent) were co-financed in comparison with 128 out of the 207 contracts (62 per cent) in 2012. The value of the 156 co-financed contracts amounted to €602 million and the
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