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Published on January 14, 2008

Author: Susett

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Slide1:  NEPAD from the FIDIC perspective Peter Boswell General Manager FIDIC World Trade Centre 2, Geneva Airport NEPAD status Infrastructure procurement: the global issues Integrated business management Business plan Programmes - Sustainable procurement Capacity building Business Integrity Management Interaction with NEPAD NEPAD from the FIDIC perspective Slide2:  NEPAD Long-term objective Eradicate poverty ... place African countries on a path of sustainable growth and development But Access to aid and investment is increasingly dependent on requirements such as good governance. Status Launched October 2001 Poised for a transition from planning to an implementation phase African Union, successor to the Organisation of African Unity Au has adopted NEPAD as its socio-economic development programme NEPAD integrated into the AU African Union AU priority: place on a secure financial footing (auditing; arrears). Slide3:  NEPAD priorities and progress NEPAD priorities put into operation the African Peer Review Mechanism promote regional integration by Regional Economic Communities (REC to implement the NEPAP action plan) - strengthen the African Union's peace, security and governance organs - boost the private sector Recent UNDP funding - set up a functioning African Peer Review Mechanism; - create a Technical Support Facility to mobilize expertise from disciplines; - establish NEPAD Advisory Panel, integrate African Union and NEPAD communication strategies; - develop cooperation policies, principles and practices. Slide4:  NEPAD peer review NEPAD African Peer Review Mechanism Thirteen countries signed a Declaration of Intent to accede to the APRM Unrealistic; politically impossible Like OECD peer learning Non-adversarial and collegial, voluntary process of incremental change at own pace Aim for improved performance in political, economic and corporate governance Abuja, March 2003 ministers meeting: specifics of peer review including its objectives, standards, criteria and indicators. Decided? Controversies Include political governance with economic and corporate governance Abuja, November 2002: also political who oversees technical aspects (independent agency or AU) Agencies (e.g., UN Economic Commission for Africa: corporate, financial and economics; ADB: banking; AU: politics) G8 donor countries will judge credibility after the first series of reviews Slide5:  NEPAD infrastructure action plan NEPAD infrastructure action plan Difficult times with the pullback from emerging markets of global players in energy and water, securing private investment is more challenging. lack of identifiable projects and opportunities But …… Development banks moving to increased infrastructure spending World Summit on Sustainable Develpopment had some effect Energy generates wealth; water and sanitation improves health Approach - Sub-regional infrastructure projects Build on existing mechanisms Through Regional Economoic Communities Many World Bank reviews now Some movement NEPAD projects ADB infrastructure expert in the NEPAD Secretariat ADB team of experts Slide6:  NEPAD environment action plan NEPAD environment action plan Eight areas Framework endorsed in July 2002 Detailed action plan will be submitted in June 2003 Supported by a Global Environment Facility (World Bank – UNEP) Identify priorities and gaps in existing programmes Develop project proposals with clear timeframes, targets, cost estimates and mechanisms for implementation and monitoring Some movement 10 thematic workshops coordinated by UNEP e.g., cross-border natural resource management Results incorporated into the action plan for adoption by: - African Ministerial Conference on the Environment (AMCEN) special session - heads of state (July 2003) - Donor meeting for financing the plan (Algiers, late-2003) CEOs meeting - GEF-supported (UNEP Nairobi) CEOs meeting (AMCEM, Kampala, June 2003) - Like FIDIC international waters (World Bank, 2001) Slide7:  Interaction with NEPAD Interaction with NEPAD Infrastructure procurement under intense review Much needed Many inefficiencies Financial systems changed Information technology opening new opportunities Effective interaction will require a good understanding of modern approaches Procurement guidelines harmonised…. and implemented (international, national) Selection of consultants Sustainable procurement Conflict of interest Integrated business management (sustainability, quality, integrity, capacity building) Accountability: project, firm, industry (indicators, benchmarks) etc. ……… FIDIC and its member associations active in many areas, and increasingly seen as a key partner in several (by, e.g., UNEP, GEF, World Bank, ILO, WHO, WTO, Transparency International, European Union procurement system, contractors, …..) Slide8:  Infrastructure procurement – the issues Government clients e.g., strongly centralised governments: principles of procurement for construction UK: Rethinking Construction, Achieving Excellence Initiative, Action Plan (1999 – 2002) - Efficiency and effectiveness Maximise value for money, i.e., whole life cost versus fitness for purpose Focus: early stakeholder involvement good design integrated project delivery: PPP/design-build/prime contracting/framework agreements continuous improvement Australia: National Code of Practice for the Construction Industry, Implementation Guidelines - Efficiency and effectiveness - Accountability and transparency Ethics Industry development Technology based intellectual services Total demand: For construction services and building services: - Total: - Supplied by the consulting engineering industry: Supplied by other firms: Percent government clients $180 billion 4.2% of construction market $110 billion $25 billion 50% Slide9:  Industry strategy: integrated policies and services Procurement principle Integrated policy & services - Efficiency and effectiveness Quality management Environmental management Sustainablity management - Accountability and transparency Integrity management Ethics - Industry development Capacity building Industry strategy Focus on: industry attitudes, public relations & co-operation - Policies services delivered by member firms - Services Integrated project delivery Slide10:  Integrated policies and services = integrated business management Procurement principle Efficiency & effectiveness Accountability & transparency Industry development Sustainability Environment - Impact of projects on air, soil, water, flora & fauna. Material efficiency; material intensity, material recyclability …….. Economic - Life-cycle costs; internalise external costs. - Economic instruments for sustainable consumption. …….. Social - Stakeholder participation - Institutional frameworks …….. Integrated business management Quality management Environmental management Integrity management Capacity building Strategy Guide Business guidelines Training kit Indicators Certification Low overhead Slide11:  Integrated business management Strategy Guide Business guidelines Training kit Indicators Certification Environmental management X X X X X X Quality management X X X X X X Integrity management X X X X Capacity building X X X X Industry policies Industry services Principles Continuous improvement Able to prove what you say you do Images of covers of documents removed Slide12:  FIDIC business plan: long-term actions: strategy - address both policy & services Policies Enable the engagement of national and regional firms in projects in developing countries by: - reviewing the policy on alliancing with local firms - encouraging international agencies and other clients and financiers to recognise value of local know-how, in a fair and transparent manner - amend policies and procedures. Services Provide a directory for marketing and identifying firms that are potential service providers or partners. Enable improved market access with effective and efficient service delivery abroad of high-quality services world-wide - Review barriers to trade - Encourage appropriate regulations Support programmes for: - capacity building - exchange of best practices - benchmarking FIDIC business plan Slide13:  Widely recognized as as the standard for infrastructure International contracts Future? - Design - Build - Operate - Concession - PFI Images of covers of documents removed Slide14:  Sustainable procurement Sustainable procurement Public procurement: fair and transparent competition to obtain the best quality – price ratio. The most economically advantageous offer that is responsive is awarded the contract. Objective award criteria: factors other than price (e.g., quality, performance) that are included in award criteria must be expressed in monetary terms. Problem Criteria that cannot be measured are not easily incorporated into contracts. Generally have a simple ‘quality management ’ contract clause. Activities - WB BIMILACI meeting input - UNEP construction sector survey - WB-GEF review - Development bank advice (Asian Dev. Bank, WB, ….) Slide15:  Sustainable procurement Sustainable procurement programme Public procurement: fair and transparent competition to obtain the best quality – price ratio. The most economically advantageous offer that is responsive is awarded the contract. Objective award criteria: factors other than price (e.g., quality, performance) that are included in award criteria must be expressed in monetary terms. Problem Criteria that cannot be measured are not easily incorporated into contracts. Generally have a simple ‘quality management ’ contract clause. Activities - WB BIMILACI meeting input - UNEP construction sector survey - WB-GEF review - Development bank advice (Asian Dev. Bank, WB, ….) Slide16:  Programmes Capacity building programme - World Bank best-practice training manual - Joint Training Centres: China, Korea Development bank assisted training courses: Vietnam, East Europe - Consultant selection guidelines (quality – cost) Business Integrity Management programme - Guide, guidelines and training manual published - Pilot programme underway - Awareness building seminars with Transparency International: Mexico, Japan, Korea Much appreciated by the development banks Cooperation with national standards bodies Coordinate with the new ISO corporate responsibility standards Slide17:  NEPAD and global trends Effective interaction with NEPAD will call for an awareness of the global infrastructure procurement issues The consulting engineering is increasingly seen as being a credible partner for tackling these issues, both … operationally, on the ground … stragegically Let’s call this ‘the FIDIC perspective’

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