Marine Infrastructure Development European Bank for Reconstruction and

Marine Infrastructure Development European Bank for Reconstruction and Development Kiev, 3 February 2017

What is EBRD? European Bank for Reconstruction and Development l International financial organisation established in 1991 l Capital base – EUR 30 billion l Credit rating of AAA by Standard & Poor's, Moody's and Fitch Shareholders of the Bank Two international organisations and 65 countries Mission The Bank promotes transition to market economies in 36 countries from Central Europe to Central Asia with an emphasis on working together with the private sector, we invest in projects, engage in policy dialogue and provide technical advice that fosters innovation and builds sustainable and open-market economies. The Bank promotes policy dialogue with regards to investment climate, business environment and policy matter.

EBRD Procurement Policies and Concession Policies DOCUMENT OF THE EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT EBRD FINANCING OF PRIVATE PARTIES TO CONCESSIONS

Main principles l ECONOMIC use of resources l EFFICIENT project implementation l Project results shall be of due QUALITY l NON-DISCRIMINATORY process l TRANSPARENT AND RESPONSIBLE use of public funds

Bank’s approach in public procurement l Procurement – an integral part of project risk management Minimisation of risks – Maximisation of success l Coverage of the entire project cycle Procurement – part of project delivery strategy l Balanced risk distribution Use of standard tender documents and internationally recognised contract terms and conditions l Aim of evaluation – best value for money Evaluation factors are usually expressed in monetary terms l The key to success – people l Assistance to the clients l Prevention and fighting corruption

The Client’s role Implement projects in line with agreements The clients are responsible for all aspects of the procurement of contracts. They invite, receive and evaluate tenders and awards contracts, which in all cases are concluded between the clients and the suppliers/contractors/consultants.

The Bank’s role • Advise clients • Assist clients in the course of project implementation • Ensure that the implementation is in line with agreements • Review procurement actions • Review complaints • In private sector - undertake due diligence and monitor projects to ensure the best value for money

Review of the dredging contracts procurement practice in Ukraine Overall observations • Sufficiently complete set of documents reflecting the national public procurement and building regulatory requirements and the business customs of the sector Areas, which may be enhanced • Qualification of tenderers • Clear and non-restrictive low cost tendering procedure • Fair and balanced contract conditions

Qualification criteria General Experience Specific Experience Personnel Capabilities Equipment Availability Financial Position Non-performance and Litigation History Current Obligations and Pending Awards JVCA specific requirements Subcontractors

Selection of contract terms and conditions

FIDIC Contracts § The International Federation of Consulting Engineers (FIDIC) is an international standards organisation for the construction industry § § Fédération Internationale Des Ingénieurs-Conseils § More than 100 members Best known for the FIDIC family of contract templates. It was established in 1913 The FIDIC founding member countries were Belgium, France and Switzerland

Dredgers Contracts Dredgers Contract 2 nd Edition 2016 Blue-Green Book) Employer Contract Engineer Contractor

Roles and Responsibilities: the Employer § Owner of the site § The beneficiary of the Works § Responsible for defining the intended purpose of the Works and for setting out the Employer’s Requirements § Enters into a contract agreement with the Contractor § Appoints a Representative/Engineer to oversee the execution of the Works § Has the right to amend the contract § Pay for the Works done § Jointly with the Contractor, appoints a Dispute Board § Takes over the Works, when completed

Roles and Responsibilities: the Contractor § Design, as necessary, execute and complete the Works and remedy any defects § Undertake all other responsibilities § Manage staff and labour in accordance § Abide by the laws and bylaws, as well as the instructions of the Engineer § Complete all the Works within the Time for Completion

The importance of the Engineer § Role of Engineer crucial § The Engineer acts for the Employer in supervising the activities by the Contractor § The Engineer issues all contractual notices to the Contractor § The Engineer determines any variations § The Engineer issues the Interim Payment Certificates § Review the Contractor’s quality assurance syste § Review the Contractor’s work programme For this reason care must be taken when reviewing the TOR for the engineers. They must be suitably experienced in similar works and FIDIC contract.

FIDIC Blue-Green Book FIDIC CONDITIONS OF CONTRACT FOR DREDGING AND RECLAMATION WORKS • General Provisions • Remedying Defects • The Employer • Variations and Claims • The Engineer • Contract Price and Payment • The Contractor • Default • Design • Risk and Responsibility • Defined Risks • Insurance • Time for Completion • Resolution of Disputes • Taking Over

Participate to WIN

How to contact us l l l Procurement Policy Department Tel: +44 20 7338 6807/Fax: +44 20 7338 7472 Procurement opportunities via website: http: //www. ebrd. com/work-with-us/procurement/project-procurement. html Project enquiries (existing EBRD projects only) Tel: +44 20 7338 6372/Fax: +44 20 7338 7848 Business Development and project proposals Tel: +44 20 7338 6372/Fax: +44 20 7338 7848 General enquiries Tel: +44 20 7338 6629/Fax: +44 20 7338 6101 Publications Tel: +44 20 7338 7553/Fax: +44 20 7338 6102

Thank you very much!