Annual Procurement Report 2006

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Annual Procurement Report 2006 AFRICAN DEVELOPMENT BANK AFRICAN DEVELOPMENT FUND- ANNUAL PROCUREMENT REPORT 2006 Procurement and Financial Management Unit – ORPU June 2007 AFRICAN DEVELOPMENT BANK AFRICAN DEVELOPMENT FUND TABLE OF CONTENTS SUMMARY AND CONCLUSIONS ................................................................................................................1 1. INTRODUCTION ..........................................................................................3 2. METHODOLOGY ..........................................................................................4 3. STATISTICS ON THE 2006 PROCUREMENT PERFORMANCE .....................................................5 3.1. Contract Size ........................................................................................................................5 3.2. Contract Distribution between Regional and Non-regional Firms ......................................11 3.3. Trend of Bank Disbursements from 1995 to 2005 .............................................................12 4. CHARACTERISTICS OF THE PROCUREMENT PROCESS .........................................................14 4.1. Introduction ........................................................................................................................14 4.2. Procurement Methods ........................................................................................................14 4.3. Bid Participation ................................................................................................................17 4.4. Nationality of Successful Bidders .......................................................................................23 5. OTHER PROCUREMENT ASPECTS ..............................................................................................29 5.1. Contract Financing .............................................................................................................29 5.2. Procurement Document Processing Time-frame ...............................................................30 5.3. Complaints .........................................................................................................................32 5.4. Procurement Review Committee (PRC) ............................................................................32 5.5. Contract Amendments .......................................................................................................33 ANNEXES ....................................................................................................................................................36 ANNEX 1 Sampling Justification .........................................................................................................36 ANNEX 2 Nationality of Successful Bidders (1120 Contracts Approved in 2006) ..............................37 ANNEX 3 Nationality of Goods Successful Bidders (of the 1120 Contracts Approved in 2006) ........39 ANNEX 4 Nationality of Works Successful Bidders (of the 1120 Contracts Approved in 2006) ........41 ANNEX 5 Nationality of Services Successful Bidders (of the 1120 Contracts Approved in 2006) .....42 ANNEX 6 Nationality of Winners of International Competitive Bidding (ICB) (Contract Amounts Higher than or Equal to UA 50,000) .....................................................................................................44 ANNEX 7 Successful Bidders for the 1120 Contracts Approved in 2006 Nominative List .................45 ANNEX 8 List of Amendments Signed in 2006 ...................................................................................84 AFRICAN DEVELOPMENT BANK AFRICAN DEVELOPMENT FUND SUMMARY AND CONCLUSIONS 1. This document is the twelfth ORPU report on the Bank’s monitoring of procurement by regional borrower countries under Bank Group-funded projects. The information it contains comes primarily from the contracts entered into the Bank’s SAP-PMS (Project Management System). Chapters 1 and 2 of the report deal with the context and methodology of the analysis while Chapter 3 reviews the 1120 contracts approved by the Bank Group in 2006. Chapter 4 is based on a sample of 730 contracts with an individual value higher than UA 50 000 and a cumulative value of representing 98% of the total value of contracts approved in 2006. It should be noted that contracts with unit values exceeding UA 50 000 have accounted for not less than 98% of the annual total contract value since 1997. This chapter focuses on the procurement process, procurement methods actually used and bidder participation levels. Chapter 5 covers contract financing, i.e. the time taken by the procurement process, complaints and contract amendments. 2. In comparing the fundamental principles of the Bank’s procurement of goods, works and consultancy services, on the one hand, with the application of the procurement process in borrowing countries and its monitoring by the Operations department, on the other, this report elicits the following main comments: i) Economy and Efficiency: Various measures taken for economy and efficiency continue to yield positive results. In particular, these include intensifying the distribution of standard bidding documents, in print as well as in the electronic versions available on the Bank’s website, the application of Presidential Instruction PI no. 02/98 on Procedures for the Review of Procurement Documents, the participation of procurement specialists in start-up missions for new projects, and in their supervision and mid-term review, in addition to the regular organisation of procurement workshops in Regional Member Countries and for Bank staff. In 2006, ORPU organised, in Regional Member Countries, eleven (11) national project implementation and procurement management workshops for both project managers and executing agency staff. Thirteen (13) such workshops were organised in 2005. Furthermore, eight procurement training workshops were organised internally, at Tunis, by ORPU and CHRM for Bank staff. ii) Equal Access to Contracts for All Eligible Bidders: Firms of 62 countries (as against 61 in 2005) were awarded 1120 contracts financed by the Bank Group. Moreover, firms of 67 member countries (47 regional and 20 non-regional) 18 non- regional) participated in the procurement process, which led to the award of 730 contracts for a unit value above UA 50,000 in 2006. The Bank stepped up the organisation of Business Opportunity Seminars for firms of member countries with a view to disseminating information on consultancy services and the supply of goods and works for contracts financed by the Bank Group in member countries. In 2006, ORPU organised in these countries nine (9) Business Opportunity Seminars (BOS) as against eight (8) in 2005. These seminars were on each occasion attended by several participants in both Regional and Non-Regional Member Countries. This is a clear indication of the growing interest consultants, contractors and suppliers in the different member countries have in the Bank’s activities. 2006 Annual Procurement Report Page 1 AFRICAN DEVELOPMENT BANK AFRICAN DEVELOPMENT FUND iii) Participation of Regional Contractors and Suppliers: Contractors and suppliers registered in Regional Member Countries won 85% of the total volume of contracts and 51% of the total value of contracts approved in 2006. In 2005, these values were 80% and 53%, respectively. Generally, firms of Regional Member Countries won more contracts than those of Non-Regional Member Countries, very often on their own territory (particularly in the case of supplies and works, following local competitive bidding or local shopping). The fact remains, however, that regional firms won mainly contracts for small or average amounts, whereas the more substantial contracts went to non-regional firms. On the other hand, several international firms have set up offices in the local African environment, and their operations are considered as regional operations. iv) Transparency: In 2006, 13 complaints were received and registered by the Bank. All the claims considered (with the exception of one) were deemed inadmissible and rejected. They concern cases based on rumours accusing the executing agencies of irregularities in the evaluation of bids or with regard to the drawing up of short lists, omissions in calls for proposals, etc… For the sole case that was founded, the borrower was asked to resume the bid evaluation process. No case was to be followed up or referred to the Procurement Review Committee (PRC). It is of note that between 2002 and 2006, the Committee received no admissible complaint. 3. Concerning the time-frame for processing procurement documents, the review focused on a larger sample in 2006 (211 cases) than in 2005 (181 cases), and there has been a slight decrease in the average time taken for processing goods and works contracts, from 19.2 months in 2005 to 18.3 months in 2006. The same applies to the average processing time for consultancy service procurement, from 16.3 months in 2005 to 14.5 months in 2006. On the other hand, the average document processing time, having shown a slight increase in 2005, has decreased significantly in 2006, going from an average of 17.5 months in 2004 to 17.8 months in 2005 and finally to 16.4 months in 2006. Pursuant to the steps taken by the Bank, the number of workshops for training in project implementation increased during the 2004-2006 period, while the training of Bank staff was also stepped up during the same period. These measures also covered assistance to the countries in question for
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