Address at the World Trade Center of New Orleans

Overview of the IDB

Basic Facts

• Largest and oldest regional development Bank
• Largest source of development finance for Latin America
• 46 Member countries

- 26 Borrowing

- 20 Non-borrowing

• Approved over $95 billion in loans

Total cost of projects

IDB Group

• Inter-American Development Bank (IDB) 1959

Lends to Governments

• Inter-American Investment Coorporation (IIC) 1988

Lend to private sectors

• Multilateral Investment Fund (MIF) 1992

Promote private sector department

Functions

• Promote investment for economic and social development
• Encourage private investment
• Promote economic growth
• Contribute to policy dialogue and reform process

Instruments

• Investment loans
• Sector loans
• Emergency loans
• Technical cooperations
• Guarantees & Syndications
• Equity Investment (IIC & MIF)
• Cofinancing

8th Replenishment Goals

• Poverty Reduction & Social Equity
• Modernization and Integration
• Environment
• Private Sector
• Civil Society

Project Cycle

Programming

• Country Priorities and Needs
• Bank’s Priorities and Views
• Only at Country’s Request
• Continuous Process
• Identify Environmental Issues

Identification and Pipeline Development

• Government Proposes Project to Bank
• Conceptualization of Specific Projects
• Identification of Issues
• Preliminary Identification of Goods and Services, Works and Consulting Services
• Terms of Reference for Environmental Impact Assessment
• 3-12 months

Project Preparation

• Borrower Responsibility
• Further Define Scope
• Establish Components
• Determine Costs
• Institutional Issues
• Carry Out Environmental Assessment
• Engineering, Design, Feasibility Studies

Project Analysis and Development

• Carried out by Bank
• Appraisal of Operation
• Detail and Schedule of Goods, Civil Works, and Consulting Services
• Executing Arrangements (including Procurement and Consultants)
• Occasional Advance Procurement
• 3-12 months

Negotiation and Approval

• Between Bank and Borrower
• Contractual Conditions
• Agreement on Procurement Arrangements
• Final Review Process
• Loan Signing
• 2-3 months

Loan Execution and Supervision

• Publication of Procurement Notices
• Actual Bidding Process
• Purchase of Goods, Construction of Civil Works, and Contracting Services
• Country Office Supervision
• 4-8 Years

Tracking Opportunities

Source of Business Information

• IDB Projects
• Project Documents
• Profile I: Brief Sketch of a Project
• Profile II: Summary of a Project (much more detailed than Profile I often including outline of anticipated procurement)

Sources of Information

• Internet
• Public Information Section: business@iadb.org

General, Country & Sector Information

• Public Information Center (PIC): pic@iadb.org

Project documents

• Executing Agencies

Bidding & contract information

• Other contacts

Executive Directors

Country Offices

Consulting Services
IDB Policy for Hiring of Consulting Firms

Consultants in IDB Projects

• Small Portion of Total Dollar Value of Projects
• High Impact on Overall Success of Projects

Project design, training, supervision

• Large Number of Contracts

Individuals and Firms

• Procedures Differ from Supply of Goods and Civil Works

Technical proposal over price

Shortlist

Use of Consultants

• By Borrowers and by IDB

90% of consultants hired by borrowers

IDB Headquarters hires mostly individuals

• IDB Operations that Use Consultants

Loans

Technical Cooperations

Stand-Alone Operations

Small Projects

Trust Funds

Project Preparation Facility

At Headquarters

Activities Requiring Consultant Services

• Basic Studies
• Prefeasibility and Feasibility Studies
• Environmental Assessments
• Preparation of Plans and Final Designs
• Institutional Strengthening for Borrowers
• Training

Bank Policies

• Selection Based on Qualifications and Capabilities
• Selection Procedures Made Known to All Firms
• Transparency of Selection Procedures

Competitive Award

• Demonstrated Competence & Qualification
• Quality and Responsiveness of Technical Proposal
• Contracts Negotiated at Fair & Reasonable Prices

Selection and Contracting

Borrower Responsible for:

• Advertising - Invitation
• Prequalification
• Evaluation of Technical Proposals
• Negotiation & Award of Contracts

Responsibility of the Bank

Bank Reviews:

• Selection Procedures
• Terms of Reference
• Shortlist of Firms
• Costs of Services

International Tendering

• Required for Contracts over US$200,000
• Advertising Required

Development Business (U.N. Publication)

Local and International Newspapers

• 30 Days Required to Allow for Response to Advertising

Prequalification Criteria

• Eligibility

• Experience

• Qualifications

• Use of National Consultants Encouraged
• Capability

• Language

• Conflicting/Competing Interests

Technical Proposals

• Invitation to Submit Proposal
• Evaluation & Ranking
• Bank Review & Approval
• Highest Invited to Negotiate
• Option to Cancel

Evaluation of Proposals

• Qualification of Assigned Staff
• Methodology
• Implementation Plan/Schedule
• Language Proficiency

Dacon Registration for Consulting Firms

• Data on Consultants (DACON)
• Optional Registration
• Joint IDB-WB Computerized System

Evaluation of Firms

• Quality of Work
• Presentation of Reports
• Organization and Execution of Works
• Relationship with the Beneficiary

IDB Thresholds for ICB

• Civil Works: US$5,000,000
• Goods: US$ 350,000
• Consultants: US$ 200,000