Inter-American Development Bank (IDB)

WASHINGTON

The Inter-American Development Bank (IDB) Group is a Multilateral Development Bank established in 1959 to help accelerate economic and social development in Latin America and the Caribbean. The IDB Group consists of three institutions, of which one, the Inter-American Development Bank, provides loans to borrowing member countries to achieve specific development objectives.

Procurement Procedures:
Borrowing countries are required to follow the Bank's rules and procedures for the procurement of goods, works, and consultants under Bank-financed loans. Executing agencies in the borrowing country are responsible for all aspects of the procurement process, including preparation of bid documents, public advertisement, prequalification of firms, short listing, bid evaluation, contract negotiation and award, contract supervision, and payment.

Procurement of Equipment, Goods, and Works by Borrowers
The borrower will issue a General Procurement Notice (GPN) in order to give advance notice to interested suppliers of future possibilities for the procurement of goods and works. The GPN must be published in UN Development Business and will include information on the thresholds to be used for International Competitive Bidding (ICB). Specific Procurement Notices (SPNs) to be procured under ICB guidelines must be advertised in UN Development Business and on the IDB Project and Procurement Information web page. Pre-qualification of bidders for large or complex contracts is often required to ensure that capable firms are part of the process. Bid evaluation is done by the borrowing country through the executing agency. All bids go through a preliminary examination to determine if bidders are substantially responsive. A detailed bid evaluation follows (based on the standard evaluation methodology as outlined in the Bank document Standard Bid Evaluation Form: Procurement of Goods and Works), during which the bid price is subject to a series of adjustments. Finally, the contract is awarded to the bidder whose bid has been determined to be the "lowest evaluated cost bid". For more information, review the IDB's Policies and Procedures for the Procurement of Goods and Works.

Procurement of Consulting Services by Borrowers
The IDB hires consultants to assist its own staff. Short-term contracts for individual consultants include project related activities such as general and sectoral identification, pre-investment studies, preparation of terms of reference, technical supervision, problem project review and supervision, appraisal, completion reports, and post evaluation. Individual consultants are limited to six months of assignments per year and a maximum C$100,000 in remuneration. Hiring of consultants is the responsibility of the Operational Division seeking the service with the assistance of the Procurement Unit. A short list of individual consultants for the assignment is developed based on the division's own experience and the Procurement Unit's database of consultants (DACON).

Procurement of Consulting Services by Borrowers
For consulting assignments, the borrower issues a General Procurement Notice (GPN). All contracts above US$200,000 are advertised in UN Development Business and in a national newspaper of the borrowing country. Consultants should express interest directly to the executing agency. A maximum of six firms are prequalified for any consulting contract. Selection of consultants and award of contracts can follow any of the following three methods:

1. Hiring based on quality and price: This method would be used when hiring services for work that is less complex or specialized, and when several equally qualified firms are competing for the contract. Price is introduced as an evaluation criterion, but with the restriction that its relative weight may not exceed 30%.
2. Hiring based on lowest price: This method may be used to hire for standard or routine types of consultancy work for which there are well-established practices and norms, and when the contract amount is a smaller value. A minimum technical or quality rating is established and bids scoring less than the minimum will be rejected. Those meeting or exceeding the minimum then compete solely on the basis of price.
3. Hiring with a fixed budget: This method may be used for simple, precisely defined work, and when the available budget is limited. Under this method, the proposal with the best technical score for the predetermined price is selected.

Canadian Consultant Trust Funds
Canadian Consultant Trust Funds allow CIDA to further dialogue and collaboration with the IDB while giving Canadian consultants a valuable opportunity to gain relevant sectoral and country experience. The IDB is responsible for the overall management of the Trust Funds including the selection of consultants. Interested suppliers should contact the IDB directly as neither CIDA nor OLIFI participates in the selection of consultants. For more information on these funds, contact the OLIFI Washington or visit CIDA's CCTF web page.

Finding Opportunities:

Pipeline and Strategies
Country Operational Strategies:
Country Operational Strategies are written by the Bank in cooperation with borrowing countries. They provide a description of the economic and social state of the borrowing country along with the Bank's upcoming multi-year development strategy. Country Operational Strategies provide the first indication of the Bank's future activities. Country Operational Strategies can be accessed through the country pages on the IDB website.

Proposed Project Documents:
Proposed Project documents are provided for each proposed project before it is given to the board. They give an outline of the project objectives and financing plan, and provide preliminary information on how the project will be implemented and the name of the executing agency. These documents are available on the IDB website, either by country or by sector.

Loan Proposal or Operations Plan:
Loan Proposals and Operations Plans provide the complete details on every component of the project including the procurement plan and timing.
These documents are available on the IDB website, either by country or by sector.

Procurement Notices:

IDB Project and Procurement Information (PPI):
The IDB PPI web page includes information on pipeline and approved projects, and gives access to general and specific procurement notices.

Subscription Services
A variety of companies and organizations offer online access to IDB procurement notices and pipeline information. For more information on the services offered and institutions covered by these organizations, and how they compare with what is freely available on the websites of the multilateral development banks, see:
http://www.infoexport.gc.ca/ifinet/resources-e.htm.

Pursuing Opportunities:

Visiting the Bank and Borrower
Visiting the Inter-American Development Bank
Planning a visit to the IDB headquarters in Washington is essential if you are interested in consulting business opportunities funded directly by the Bank. Visits are also very valuable if you are pursuing business contracts in borrowing countries, although Bank officers have little influence in the selection process for projects executed by the borrower. Please inform OLIFI Washington of your upcoming visit and consider meeting them first for up-to-date information on the IDB and/or projects of interest.
Project Officers are assigned to each IDB project, and assume a managerial/supervisory role in developing and implementing projects on behalf of the Bank. Project Officers will be more motivated to meet with you if you can offer new expertise and technologies, enhance the effectiveness of their projects or address problems with specific project elements.
Regional Specialists are responsible for liaising with borrowers and for strategically overseeing the Bank's lending portfolio in a specific region. These officers can provide firms with an overview of the Bank's country assistance strategy and its development objectives in a specific region and/or country.
Sectoral Specialists support Project Officers through regional technical departments. These specialists provide advice to Project Officers on technical elements of their projects, and often help Project Officers interpret Bank guidelines.

Visiting the Borrowing Country
Planning a visit to the borrowing country is essential for consulting and engineering firms and should also be considered by exporters of goods and equipment. As soon as you have identified a project of interest, you should contact the executing agency and register the interest of your company. Information on the key decision makers within the executing agency can be obtained from the IDB Loan Proposal, UN Development Business, or from IDB Project Officers

Preparing for Meetings
Whether meeting with Bank staff or with the executing agency, suppliers are encouraged to be well prepared for their meeting with specific topics to discuss. General inquiries about business opportunities or information available elsewhere are not well received. Clearly demonstrate what your company can do or can provide to facilitate the work of the project officer or the achievement of the project. You must clearly demonstrate your experience and capabilities, and any solutions you intend to propose.

Finding a Local Partner
Working with a local partner is highly advisable in most cases to ensure a local presence and to facilitate any necessary follow-up. Partnering with a local firm can help reduce costs while bringing in local expertise. Some of the subscription services that provide procurement notices also provide databases of firms interested in IDB projects. The IDB database of contract awards and bidders is also a good place to find potential partners.

Subcontracting
There are opportunities to participate in IDB funded projects through subcontracting with firms awarded prime contracts. Subcontracts are not governed by IDB procurement regulations. Interested firms should contact prime contractors directly. The IDB website provides a comprehensive database of past contract awards and bidders with breakdowns by firm nationality and project country.