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2020 Annual Review of Procurement Activities Under the Procurement Policies and Rules

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2020 Annual Review of Procurement Activities Under the Procurement Policies and Rules 2020 ANNUAL REVIEW OF PROCUREMENT ACTIVITIES UNDER THE PROCUREMENT POLICIES AND RULES Prepared by: The Procurement Policy and Advisory Department April 2021 i OFFICIAL USE 2020 Annual Review of Procurement Activities under the Procurement Policies and Rules Executive summary This report, prepared by the Procurement Policy and Advisory Department (PPAD), reviews public sector procurement contracts signed in 2020, funded and/or administered by the Bank, procured by the Bank’s clients and entered into the Contract Review and Award database before the date of generating this report (31 March 2021). A separate section (2.16) covers the procurement activities of the Nuclear Safety Department (NSD). In 2020, a total of 294 contracts (excluding NSD contracts) were signed by the Bank’s clients. The total value of these contracts amounted to € 2.176 billion, for which EBRD’s own financing represents € 1.359 billion. In comparison with 2019, this is a decrease in number of signed contracts (4 per cent) and also a decrease in the total contract value (12 per cent). Due to the fact that some client led donor funded consultancy contracts are still administered through a legacy IT system and therefore not entered into the Contract Review and Award system (CRA), 40 such contracts for a total value of € 29.1 million are not included in the overall statistics. The average contract value was € 7.4 million and the average EBRD financing was €4.6 million per contract. The largest contract placed was the Acquisition of rolling stock (37 (plus 8 optional) trains) for the Warsaw Metro Line II extension in Poland. This Goods contract was signed with a value of € 305 million of which EBRD financed €62 million, with the remaining amount financed by other sources. As in previous years, the contracts awarded through competitive processes constitutes the majority of contracts representing 96 per cent of the total number of contracts and 99 percent of the total contract value. The interest of companies to participate in EBRD financed tenders remains at a high level. The total number of tenders submitted in 2020 was 1,034. Out of these tenders, 68 per cent were submitted by tenderers from EBRD Countries of Operation (in their own or other Countries of Operation) resulting in awards of 237 contracts (82 per cent of all contracts) with a total value of € 1.7 billion (76 per cent of the total contract value). Companies from the following five countries were most successful in terms of highest total contract value: Turkey (€ 324 million), Czech Republic (€ 316 million), Romania (€ 238 million), China (€ 201 million) and Croatia (€ 168 million). In total, these contracts represent € 1.247 billion or 57 per cent of the total contracted value. Cross-border participation in tendering for EBRD financed contracts in Countries of Operation is at a high level (31 per cent), where 12 per cent of all contracts were won by companies from Countries of Operation competing in other Countries of Operation. PPAD handled 14 complaints, which is a slight increase in numbers compared to 2019 (11). As of 31 December 2020, based on the Bank’s commitments at the time, the contract pipeline shows that in the forthcoming four years, the Bank’s public sector clients are expected to sign in excess of 970 contracts for an amount exceeding € 14.5 billion (EBRD funding €9 billion). It should be appreciated that with the relatively small number of contracts spread across different sectors and Countries of Operation that are covered on a yearly basis in this report, the data set is not sufficiently representative to be used for comprehensive analysis of trends. Contracting activities will inevitably reflect the investment and volume that the Bank finances rather than more general trends in the market. Moreover, the contracting activities in 2020 were affected by the global pandemic. As a consequence of the pandemic, governments and international organisations have implemented severe measures to control the spread of the virus, with serious implications on the clients, contractors, suppliers and consultants and their staff and business partners. These implications had an impact on procurement exercises and implementation of signed contracts under Bank financed projects. In April 2020, PPAD published a public guidance not for the client and market players on how to handle procurement and implementation risks and challenges related to the crisis. A number of internal Bank wide instructions and guidance notes followed, all of this to minimise the impact of the COVID-19 situation on the Bank’s public portfolio and most importantly people and economics of the Countries of Operation. Section 2 of this report is based on a revised automated format as explained in Section 1. 2020 Annual Review of Procurement Activities under the Procurement Policies and Rules Abbreviations ACN Anti-Corruption Network ADB Asian Development Bank AMEDD Agreement on Mutual enforcement of Debarment Decisions ASB Advice for Small Business CIPS Chartered Institute of Procurement and Supply CRA Contract Review and Awards System ECEPP EBRD Client Electronic Procurement Portal EE Energy Eurasia EEMEA Energy, Europe, Middle East & Africa EIB European Investment Bank EPP Enforcement Policy and Procedures EU European Union FIDIC International Federation of Consulting Engineers GPA Government Procurement Agreement HOP Heads of Procurement IFI International Financial Institutions Infra Eurasia Infrastructure Eurasia Infra Europe Infrastructure Europe IMPPM International Master in Public Procurement Management ITMEA Infrastructure Turkey, Middle East & Africa LTT Legal Transition Team MAPS Methodology of Procurement Systems MDB Multilateral Development Bank MEI Municipal and Environmental Infrastructure NSD Nuclear Safety Department OCCO Office of the Chief Compliance Officer OECD Organisation for Economic Co-operation and Development PCC Procurement Complaints Committee PODD Procurement Operations Delivery Department PPAD Procurement Policy and Advisory Department PPR Procurement Policies and Rules SME F&D Small Medium Enterprise Finance & Development Group TAG Technical Advisors Group TC Technical Cooperation TOR Terms of Reference TVU Tor Vergata University UNCITRAL United Nations Commission on International Trade Law WTO World Trade Organisation ii OFFICIAL USE 2020 Annual Review of Procurement Activities under the Procurement Policies and Rules Table of Contents 1. Introduction. .................................. ………………………………………………………………………………………………………… 1 2. Analysis of public sector procurement data................................................................... ........................... ……………………… 2 2.1 Volume and nature of contracts................................................................... ................................................................................ ....2 2.2 Average and largest value contract statistics................................................................... ............................................................ ....2 2.3 Analysis by country of operation................................................................... ............................................................................... ....2 2.4 Distribution of contracts by award method in 2020................................................................... ................................................... ....3 2.5 Level of participation................................................................... ................................................................................................. ....4 2.6 Distribution of contracts by award method in 2020................................................................... ................................................... ....4 2.7 Success of entities from Countries of Operation................................................................... ....................................................... ....6 2.8 Co-financing................................................................... .............................................................................................................. ....7 2.9 Public sector procurement under sub-sovereign projects................................................................... ......................................... ....8 2.10 Alternative procurement................................................................... ............................................................................................ ....8 2.11 Nuclear Safety Department .............................................................................................................................................................. 8 2.12 Annexes covering 2020................................................................... ............................................................................................ ....9 2.13 Analysis by sector................................................................... ................................................................................................... ....10 2.14 Accumulated data 2016 - 2020................................................................... ............................................................................... ....11 2.15 Listing of annexes with accumulated data 2016 -2020............................................................................................................... ....12 2.16 Contract award process..................................................................
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