Opportunities with the World Bank Group in Solid Waste Management Contracts for equipment supply and construction and operation of infrastructure What does the World Bank Group do? Who We Are Financing Instruments With 189 member countries, staff from The World Bank Group provides a variety more than 170 countries, and offices of financing instruments to the public and in over 130 locations, the World Bank private sector including most commonly: Group is a unique global partnership: Investment Project Financing provides five institutions working for sustainable loans, credits, grants and guarantee solutions that reduce poverty and build financing to governments for activities that shared prosperity in developing countries. create the physical/social infrastructure Our Mission necessary to reduce poverty and promote sustainable development. To end extreme poverty by reducing the share of the global population that lives in Development Policy Financing provides extreme poverty to 3 percent by 2030. loans, credits, grants and guarantee budget support to governments or a To promote shared prosperity by political subdivision to implement policy increasing the incomes of the poorest 40 and institutional actions to help achieve percent of people in every country. sustainable, shared growth and poverty What We Do reduction. Partner with Governments: The World Program-for-Results links disbursement of Bank Group provides financing, policy funds directly to the delivery of defined advice, and technical assistance to results to help countries improve the governments of developing countries. design and implementation of their Partner with the Private Sector: The own development programs, strengthen World Bank Group helps strengthen the institutions and build capacity to achieve private sector in developing countries by lasting results. providing financing, technical assistance, Trust Funds and Grants allow for the political risk insurance, and settlement of scaling up of activities, notably in fragile disputes to private enterprises, including and crisis-affected situations; enable the financial institutions. World Bank Group to provide support when our ability to lend is limited; provide immediate assistance in response to natural disasters and other emergencies; and pilot innovations that are later mainstreamed into our operations. Private Sector Financing, Direct Investment and Guarantees are provided to private sector entities. September 2017 1 Does the World Bank finance solid waste management? Since 2000, the World Bank Group has committed over 4.5 billion dollars as part of over 300 projects designed to improve solid waste management. Other 1% Middle East East Asia and and North Pacific Africa 18% 12% Solid Waste Management Loan projects Africa 22% Eastern Europe (Number of projects per region) and Central Asia Approval Date July 1999-August 2017 19% Latin America South and the Asia Caribbean 10% 18% Commitments to Solid Waste Managememt Loan Projects $700 Approval Date Fiscal Year 2000 – 2017 $676 100 $580 90 $600 80 $500 $476 70 Projects (#) $381 $391 60 $400 Spending ($MM) 50 $286 $289 $302 $272 $300 $233 40 $200 $162 30 $135 20 $83 $66 $76 $100 $64 $34 $29 10 $0 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Spending Number of projects 2 September 2017 What is the role of contractors and equipment providers? World Bank financed projects implemented manages the relevant bidding process, by our government partners rely on private awards the contract and supervises its contractors and equipment providers to implementation. To ensure that the deliver and enhance solid waste services. proceeds of World Bank financing are Private contractors undertake construction, used only for the purposes for which and at times, operation and financing it was granted with due attention of solid waste infrastructure. Equipment to considerations of economy and providers supply solid waste equipment efficiency, the World Bank provides including trucks, other heavy equipment oversight applying the procedures and treatment technologies. outlined in the World Bank procurement In these “Goods and Works” contracts, policy (“Procurement in Investment procurement is led by the Government Project Financing and other Operational that is receiving the World Bank financing Procurement Matters”). and not the World Bank. The Government Client - Governments and recipients of grant or loan Manages funds, responsible for project Conducts procurement for contracts results financed by World Bank grant or loan Common goods - works: construction of landfills, recycling facilities, transfer stations, provision of collection trucks, equipment, operation of landfills September 2017 3 Examples of goods and works contracts Contract for the Design, Construction, Operation and Financing of Landfill Gas-to-Energy Plant in Mexico Contract Size: $10.84 million Description: Through a $5.1 million grant provided by the Global Environment Facility (GEF) and $5.7 million in financing from a private sector strategic partner, the World Bank worked with the Mexican government, the City of Monterrey, and private actors to form a cogeneration company that would design, construct and operate the facility and to sell the energy generated by the facility to the members of the company. The project is currently providing electricity to the city of Monterrey’s street lights during the night and its Metro system during the day. The project is reducing greenhouse gas emissions from the landfill. The project also contributed to the development of an innovative public-private-partnership that overcame regulatory limitations for investment in the power sector in Mexico. Selection Process: A joint venture agreement between SEMIPRODE, the landfill operator and a cogeneration company, “Bioelectrica” that included a private sector consortium, was reached to provide financing in the amount of $10.84 million for the construction of the plant and arrangements for operation and revenue sharing. The strategic private sector consortium was procured through an international competitive bidding process. SIMEPRODE organized the bid based on a selection process for pre- qualified bidders based on their experience in design, construction and operation of landfill gas facilities, their personnel and financing capabilities and included technical as well as financial proposals. Contract for Landfill Construction Project in the West Bank Contract size: $7.99 million Description: In May 2009, the World Bank approved the Southern West Bank Solid Waste Management project to improve solid waste disposal services for the communities and businesses of Palestinian municipalities. Unsanitary and uncontrolled solid wastes disposal has become a serious public health and environmental hazard of great concern to the Palestinian people in the West Bank and Gaza. The vast majority of solid waste produced by the Palestinian population in the West Bank, except in the northern region, is disposed of at unregulated dump sites. This project had stakeholder engagement, institutionalization, and construction components. Procurement: A competitive bidding process was conducted through the World Bank procurement system following the World Bank procurement rules. The criteria were explicitly provided and the posting was advertised globally. 4 September 2017 Examples of goods and works contracts Contract for Procurement of Solid Waste Equipment for Monrovia, Liberia Contract size: Six contracts between $16,500 and $49,500 for the supply of pickups, tow pickups, and skip bucket trucks Description: Through a grant from the Liberia Reconstruction Trust Fund (LRTF) supported by the International Development Association (IDA), the Government of Liberia contracted the construction and provision of municipal waste equipment as part of the Emergency Monrovia Urban Sanitation Project (EMUS). Liberia’s economy, institutions, and human capacity were completely devastated by the country’s 14-year civil war, which ended in 2003. During the war, the extensive destruction of basic infrastructure contributed to the collapse of productive activities and a reversion, essentially, to a subsistence economy. Major public services, including sanitation, water supply, and electricity, were discontinued or shut off. Selection process: A competitive evaluation process was conducted through national competitive bidding using the World Bank procurement system following the World Bank procurement rules. The criteria were explicitly provided and the posting was advertised globally. The Project Implementation Unit of the Monrovia City Corporation contracted the selected firm. Contract for the Design, Construction, and Operation of a 219,000 Ton Capacity Landfill in San Fernando, Phillipines Contract size: $3.3 million Description: Waste in 26 neighborhoods of San Fernando were being disposed of in uncontrolled landfills, causing health and environmental hazards for the 120,000 people living in the area. In addition, many of the local authorities do not have an independent waste management department. The World Bank piloted a Design, Build, and Operate contract of a managed landfill to address this challenge. Procurement: A competitive bidding process was conducted through national competitive bidding using the World Bank procurement system following the World Bank procurement rules. The criteria were explicitly provided and the posting was advertised. The Project was well-received by the private sector, with 11 companies interested in applying for pre- qualification, and 5 companies bidding. September 2017 5 How are contractors and firms selected? Each World Bank project tailors its Request for Bids: Undertaken when the approach to procurement depending on detailed requirements for goods and works the specific project and country context can be specified. under the new World Bank Procurement Request for Quotations: Involves comparing Framework. The types of procurement quotations from firms and is often used processes fall broadly into the following for procuring limited quantities of readily categories: available off-the-shelf goods or non- Approved Selection Methods: For those consulting services. contracts where World Bank regulations Direct Selection: This method can be are applied, the Government agency used in exceptional circumstances where approaches the national or international there is only one suitable firm or there market directly or through open or is justification to use a preferred firm (as limited competition. The winning bidder is outlined in the World Bank Procurement selected using the following methods: Regulations). Request for Proposals: Allows contractors Alternative Procurement Arrangements: to, as part of the bid, innovate and In many cases where the contracts provide specific solutions for complex or is of low value and in certain other customizable goods or works. circumstances, the procurement process may rely on procurement rules and procedures of the Government agency or entity managing the World Bank financed project. Additionally, in cases where there is multiple sources of financing, the procedures of another Multilateral or Bilateral agency may be used. For more information on procurement processes, the World Bank Procurement framework and regulations, please refer to: www.worldbank.org/procurement 6 September 2017 Where do we learn about opportunities? UN Development Business: Provides government implementing agencies announcements of procurement managing World Bank financing, opportunities categorized by country. https://www.devbusiness.com/ World Bank Procurement Website: World Bank Project Procurement App Provides resources on current World Bank (available on the Apple App store): financing and government implementing Lists current tender notices for contracts agencies, procurement opportunities and receiving World Bank financing. Also, contract awards. provides historical data on contracts that http://www.worldbank.org/procurement have undergone prior review by the World Government Websites and Media: The Bank, which are categorized by region, websites of the agencies receiving World country, sector, type of good or work, and Bank financing or local media print and suppliers. digital media are important resources World Bank Group Finances App for identifying opportunities in specific (available on the Apple App store): projects or countries. Provides an overview of projects and September 2017 7 We have ideas!! How can we get involved in improving procurement with the World Bank? Industry Engagement Program (IEP) In 2016 the World Bank committed to Waste management is an area where the establish an Industry Engagement Program World Bank is considering a more in-depth (IEP) to improve procurement outcomes in engagement and is seeking preliminary targeted sectors. industry input. The program is designed to work closely The World Bank is interested in involving with sector experts to identify and fix private sector actors. We want to hear recurring procurement problems in World from you, and find a way to work together! Bank financed projects, with the goal of Please contact: solidwaste@worldbank.org achieving improved procurement and development outcomes. 8 September 2017 World Bank Group 1818 H Street, NW Mail Stop MC 10-1018 Washington, DC 20433 USA www.worldbank.org/procurement Solid Waste Management Team: solidwaste@worldbank.org WORLD BANK GROUP