An overview of Consultancy Opportunities at the EBRD

An overview of Consultancy Opportunities
at the EBRD

Steven Gillard, Senior Advisor, Consultancy
Services Unit

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The Bank’s need for Consultants

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Consultants required to support the
EBRD’s projects (loans or equity)
EBRD

Provides loan or equity
Consultant support to finance infrastructure, Consultant support
for Project funding to Banks etc. for Project
Preparation (Project) Implementation

To Clients
(~80% Private and ~20% Public)
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Consultancy services required for project
preparation and implementation (examples)
Project Preparation Project Implementation
l Market Demand Studies (various) l FOPIP - Financial and Operational
Performance Improvement Programme
l Feasibility Study (sector
(financial, management information system,
engineers, environmental,
corporate restructuring experts)
financial, legal experts)
l Corporate Development Programme
l Financial and Technical Due
(financial, legal, management, IT, business
Diligence (various)
planning experts)
l Environmental Impact Assessment
l Project Implementation Unit - procurement
(environmental experts)
assistance & supervision of works
l Legal Due Diligence (legal (procurement experts, engineers)
experts)
l Creditworthiness Enhancement Programme
(financial, legal, sector regulation experts)
l Lender’s supervision (various)

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Consultants required to support the Bank’s
other activities (non-Project related)

l Policy and public sector reform – Legal Transition
l Legal advice to EBRD’s Office of the General Counsel
l Economic/political analysis, research
l Institution building/training via EBRD’s Small Enterprise
Growth Programme (EGP), Business Advisory Services
(BAS).
l Information Technology (Bank HQ)
l Social and Environmental
l Nuclear Safety

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Contract Statistics

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Financing of Consultancy Assignments

Bank
Technical Co-
Bank loans Administrative
operation funds
budget

Annual Estimates €40 to 100 m €5 to 30 m €30 to 70 m

In 2011 €99.04 m €15.09 m €55.36 m
1,323 contracts 20 contracts 1,273 contracts
Tied: €17.32 m
Untied Untied
Untied: €81.72 m

Contracting party Borrowers/Bank Borrowers Bank

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Contract Awards (€) by EBRD and its
Clients* in 2007-2011**
Total Consultancy Contracts Awarded by EBRD & Clients

Year Value, € million Number

2011 169.49 2,797
2010 175.00 2,820
2009 137.17 2,821

2008 120.22 2,434
2007 136.18 2,377
* Clients are generally the recipients of loans or equity investments
** Including contract awards by the Office of the General Counsel
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Value/Number of Consultancy Contracts by
EBRD Department/Team in 2011*
Departments Value Number
Financial Institutions 31.55 m € 123
Infrastructure 29.92 m € 238
Energy incl. Natural Resources, Power &
4.43 m € 40
Energy
Small Business Support (SBS), including
Enterprise Growth Programme (EGP) and 10.64 m € 891
Business Advisory Services (BAS)
Other Banking Departments 30.59 m € 459
Non-Banking Departments (legal, chief
economist, HR, risk, operational policies, 47.28 m € 1,026
etc.)
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* Excluding 20 loan-funded consultancy contracts for 15.09 m €


Selection of Consultants

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EBRD’s Procurement Policies and Rules
(PP&R)

l Revised Procurement Policies & Rules (PP&R)
were adopted by the Bank’s Board of Directors
in May 2010 after a public consultation process:
http://www.ebrd.com/pages/research/publicatio
ns/policies/procurement.shtml
l Based on fundamental principles of non-
discrimination, fairness and transparency
l Harmonisation with other International Finance
Institutions (IFIs) on-going (e.g. Standard
Request for Proposal)
l Section 5: procurement of consultant services

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Procedures for Consultant Selection

l Essentially the same procedure whether it is Client or Bank
contracted

l 3 selection procedures set out in PP&R based on the estimated
total value of the contract and all extensions
– below EUR 75,000 - Direct Selection
– EUR 75,000 to EUR 300,000 - Selection from Shortlist.
– EUR 300,000 and over – Evaluation of Proposals
Note that for selections for individuals SSL is used for anything over EUR
75,000 with no upper limit.

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Direct Selection

l Less than EUR 75,000
l The Executing Agency selects without competitive
selection
l Bank may negotiate on budget, team composition
and contractual terms

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Direct Selection

l How does the Client or Bank choose for direct
selection?
l How can consultants improve their chances of
being awarded Direct Selections?

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Selection from a Shortlist

l Between EUR 75,000 and EUR 300,000 for
firms and EUR 75,000+ for individuals.
l Usually begins with a “Procurement Notice”
calling for expressions of interest on the Bank’s
Website.

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Procurement
Notice

Sign-up for
Email alerts!

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l Procurement Notices – key features

- Short description of Services
- Consultant Profile sought
- Submission Requirements (nb dates)
- Contracting Entity (EBRD / Client)
- Available Budget, Funding Source
- Eligibility Criteria
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Are you eligible?
l Donor restrictions
l Conflict of Interest
l Late submission (and what to do if you are
running out of time)

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l Consultants submit Expressions of Interest and a Long
List of qualified and competent firms is decided upon by
the shortlisting committee

l Shortlist (3 to 6 qualified firms)
– normally no more than 2 consultants from the same country

– normally requires at least one qualified consultant from one of
the Bank’s Countries of Operation

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l The Shortlisting Committee creates a shortlist of firms who
are ranked according to technical merit.
l The top ranked firm is sent the Terms of Reference and
invited to submit a workplan and budget.
l Bank may negotiate on budget, team composition and
contractual terms. If negotiations fail, second ranked firm
is contacted.
l When negotiations are successful, contract awarded.

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Evaluation of Proposals

l EUR 300,000 and over (for firms only).
l As per Selection from Shortlist until the shortlist
is created i.e. procurement notice and
shortlisting.
l Shortlisted firms (generally between 3 and 6
firms) selected and sent the Request for
Proposal (RFP) - see next slide.

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l Request For Proposals (RFP)
- RFP1 - Data Sheet
- RFP2 - Instructions to Bidders
- RFP3 - Forms
- RFP4 - Evaluation Criteria
- RFP5 - Terms of Reference
- RFP6 - Contract Template
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l NB Evaluation Criteria (RFP 4)
l Key components
- Experience (by subject matter; Experience
in Countries of Operation)
- Calibre of staff
- Methodology and work plan
- Other (local language; local input)
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Consultant Selection:
l Quality Based Selection (QBS)
– Most important criteria technical qualification / relevant experience
Price as a factor for Evaluation of Proposals:
l Quality Cost Based Selection (QCBS)
– 2 Envelope System. The norms are:
– Technical proposals: weight of 80% and only when technical
thresholds are met
– Financial proposal: weight 20%

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lWhen the proposals are received, the evaluation
committee scores the technical proposals.
lWhen the technical scoring is complete the financial
proposals are opened.
lThe technical and financial scores are calculated
according to the pre-agreed formula.
lNegotiations begin with the top-ranked firm. If
negotiations fail, second ranked firm is contacted.
l When negotiations are successful, contract awarded.

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Overview of Procedures for Consultant
Selection
Direct Selection Selection from Evaluation of
Shortlist Proposals
(below EUR 75,000) (EUR 75,000 – EUR 300,000) (EUR 300,000 and over)

Select consultant Calls for expressions of Calls for expressions of
interest (not obligatory) interest
Long list Long list
Shortlist Shortlist
Select consultant Proposal
Negotiations Select consultant
Negotiations Contract Negotiations
Contract Contract
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Selection & Contracting Timeframes

l Timeframes for Selection and Contracting
- Direct Selection: 7-14 Days
- Selection from Shortlist: 5-7 weeks
- Evaluation of Proposals: 4-6 months
l May be longer if Client contracted

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Selection methods for Bank and TC
funded contracts in 2011*
% of Total Contract Value

TC funded
contracts 20.62% Direct
€99.04 16.08% selection
63.30%
Selection from
Bank funded
46.09% Shortlist
contracts 50.59%
€55.36 m 3.32%
Evaluation of
proposals
0% 20% 40% 60% 80%

*Excluding contracts funded from public sector loan proceeds

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Contracting

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Contracting (Bank)

l Standard contract for firms and individuals,
Framework Agreements etc.
l Bank only contracts on the basis of its own
templates.
l Some (but not much) room for negotiation on
contractual matters.

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Contracting (Client)

l EBRD’s contract templates aim at a fair balance between
interests of Client and consultant
l Payment terms and advance are subject to negotiations
and are tailored to each assignment
l EBRD is providing advice on negotiations and is issuing
final versions of contracts even if Client is contracting the
consultant
l Rule of Thumb: If assignment is for benefit of client, client
will select and contract consultant

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Contracting:
When Client is Contracting Authority
EBRD

Approving Grant Agreement Payment
Invoice

CLIENT

Invoice Consultancy Contract

CONSULTANT
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Any Questions?

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An overview of Consultancy Opportunities at the EBRD

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