CICA/IFI 2010 CONFERENCE represents a valued link between MDBs and the Construction Industry at a global level.

CICA/IFI 2010 CONFERENCE constitutes a platform where opinions and exchanges of views are essential. It will facilitate the continued dialogue between the Construction Federations and MDBs. We expect that the topics to be discussed in the Conference will contribute to the success of MDBs’ objectives and the continued economic growth of developing countries in which MDBs are active.

CICA proposes a new format for CICA/IFI 2010. Roundtables (RTs) will be organized and include reflections and proposals on various topics, as indicated below, that reflect the MDBs’ and Construction Industry’s strategic priorities. The RTs will consist of a Panel of experts and participants that will discuss topical issues within the respective RT’s scope.

Each Panel will consist of a Chairman, who will organize the presentations and debates, and Panelists to discuss the views and concerns of their own organizations on the selected topics. MDBs will closely participate in the selection of the Panelists.

The schedule of the RTs is expected to allow participants to attend all the RTs.

1. 08:30 am – 09:00 am OPENING SPEECHES

 

2. 09:00 am – 01:00 pm ROUNDTABLE 1 (RT1): MDBs’ ACTIONS TO COUNTER THE EFFECT OF THE CRISIS – FIRST RESULTS – NEXT STEPS

 

3. 02:00 pm – 03:00 pm: WORLD BANK INVESTMENT LENDING REFORM

 

4. 03:15 pm – 06:00 pm ROUNDTABLE 2: INTEGRITY

 

DAY 2 - February 11, 2010

 

5. 08:30 am – 10:40 am ROUNDTABLE 3: USE OF COUNTRY SYSTEM

 

6. 11:00 am – 01:00 pm & 02:00 – 03:00 pm ROUNDTABLE 4: PUBLIC PRIVATE PARTNERSHIP (PPP)
7. 3H15 pm – 5H30 pm ROUNDTABLE 5: THE WELL PREPARED PROJECT (WPP)

 

8. 5:30 pm – 6:00 pm CLOSING SPEECHES

1. World Bank Senior Management’s Opening Address, Anne-Marie Leroy, Senior Vice President, World Bank General Counsel
2. Address by AGC, Steve Sandherr, CEO of the Association of General Contractors of America (AGC) (15’)
3. CICA President’s Answer, Manuel R. Vallarino Q., CICA Acting President

1. Introduction by RT1 Chairman (15’), Jamal Saghir, Director for Energy Transport and Water, World Bank
2. Measures undertaken by MDBs and Private Banking. First results. Next steps:

1. World Bank: 2009 actions, results. INFRA Platform. Implementation. (20’),

Marc Juhel, Sector Manager Transport, World Bank

2. Multilateral Development Banks 1: actions, first results and way forward (15’), Ximena Talero, Chief Counsel for the Cofinancing and Project Finance Department, World Bank
3. Multilateral Development Banks 2: actions, first results and way forward (15’), Eddie R. Ouko, Auditor General, African Development Bank
4. Private Banking (15’), Richard Garcia, Natixis Project Finance Group
5. MIGA specific approach in current economic and financial environment (15’),

James Bond, Chief Operating Officer, MIGA

6. IFC Policy in the Current Economic and Financial Environment (15’),

Usha Rao-Monari, Senior Manager Infrastructure Division, IFC

1. Break (30’)
2. Regional Federations: lessons learned, first conclusions, additional proposals for improvement. Presentations by Regional Federations - Zoom on some Countries (60’)

• Awni Saket, Founding President of the Federation of Arab Contractors (FAC); CICA Vice President (15’);
• Fernando Lago, Representative of the Inter-American Federation of the Construction Industry (FIIC) (15’);
• Ulrich Paetzold, Director General of the European Construction Industry Federation (FIEC) (15’);
• Perry Fowler, Representative of the Federation of United States and Canadian Contractors Associations (FUSCCA) or Kenneth D. Simonson, Chief Economist, Associated General Contractors of America (AGC) (15’)

1. CICA Position (15’), Jacques Benatar, CICA Director General
2. Q/A & Conclusions (30’)

• Lunch (60’)

3. 02:00 pm – 03:00 pm WORLD BANK INVESTMENT LENDING REFORM

1. Presentation (30’), Peter Harrold, Director, Operations Services, World Bank
2. Q/A (30’)
• Break (15’)

3. 03:15 pm – 06:00 pm ROUNDTABLE 2: INTEGRITY

Contractors consider corruption as a plague in business relationship. Corruption is a major obstacle in doing business. Corruption practices increase the cost of transactions, distort the rule of law and the principle of free competition, weaken the strength of contracts, brake truth in contractual relations and may be an obstacle to the good quality of a Project.

IFI’s anti-corruption programs are mainly based on targeting companies involved in corrupting practices. They use denouncement as an anti-corruption method, while this method - besides that it does not cover the totality of the situations faced by the Contractor - has negative aspects and consequences.

Anti-corruption programs should take into account situations when any Stakeholder may be the initiator of corruption practices should include more preventing measures and should provide tools for the Contractors to fight corruption.

This topic is one of CICA main concerns.

SYLLABUS

1. Introduction & Presentation by Chairman RT2 (INT) (20’), Stephen Zimmermann, Director of Operations, Integrity Vice President, World Bank
2. World Bank Sanctions regime new reforms (15’), Frank Fariello, Senior Counsel, Legal Department Operations Policy, World Bank
3. Sanctions (15’), Paul Ezzeddin, Senior Policy Officer, World Bank

• Break (20’)

1. AfDB approach (30’), Eddie R. Ouko, Auditor General, African Development Bank
2. FIEC/EIC position (15’), Per Nielsen, Senior Advisor, NCC International AB
3. CICA: CICA/FIDIC Joint Statement on fighting corruption (15’), Manuel R. Vallarino Q., CICA Acting President
4. Q/A & Conclusions (20’)

 

End of Day 1 CICA-IFI 2010 CONFERENCE

 

CICA-IFI 2010 CONFERENCE

DAY 2 - February 11, 2010

DETAILED PROGRAM

 

3. 08:30 am – 10:40 am ROUNDTABLE 3: USE OF COUNTRY SYSTEM

Main objectives of the Paris Declaration of 2005 on Aid Effectiveness constitute a major and inescapable change of paradigm for Developing and Emerging Countries. The Agenda of Accra for Action of 2008 makes the use of local systems of Procurement the default option.

The Use of Country Systems has significant potential to improve development impact. 

That is the reason why it is important that the local systems be at least equivalent to IFI’s standard rules. In a preliminary phase, a detailed audit involving about ten countries was launched by the World Bank to evaluate their strengths and weaknesses. The audit implements a methodology developed by the World Bank, together with the Committee of OECD Development Aid.

When the audit shows that corrective measures to the existing local systems are necessary and, if and when, the related Country agrees, then new legislative and institutional instruments of Procurement will become compulsory.

Key to this approach will be an increased emphasis on local capacity-building and human resource training, which can have a major multiplier effect by leading to broad improvements in the quality of government systems.

Not very surprisingly, such situation conveys a number of concerns with Governments, MDBs, Contractors and Stakeholders...

SYLLABUS

Chairman: Peter Harrold, Director, Operations Services, World Bank

1. Pilot Country Presentation (15’), Pamela Bigart, Lead Procurement Specialist, World Bank
2. International Technical Advisory Group (ITAG) Concerns (15’), Uwe Krenz, ITAG Spokesperson, Board Member of the European International Contractors (EIC)
3. Contractors Concerns (FAC, FIIC,…) (15’), Jacques Benatar, CICA Director General
4. MDBs’ Presentation (15’), Yacine Fal, Division Manager, Procurement and Fiduciary Services, African Development Bank (TBC)
5. Capacity Building (15’), Mark E. Steiner, Senior Policy Director, American Council of Engineering Companies
6. Q/A & Conclusions (20’), Peter Harrold, Director Operations Services, World Bank

• Break (20’)

3. 11:00 am – 01:00 pm ROUNDTABLE 4: PUBLIC PRIVATE PARTNERSHIP (PPP) (1)

Infrastructures are a key component to development and growth [Easterly, Calderon, Serven, 2002]. Besides, we note that private participation for infrastructure projects has skyrocketed since 1990 [Armstrong and Sappington, 2006].

Although these contractual arrangements appear rather efficient, they raise a certain number of difficulties all along the sequence of the contracts: from gestation, to the birth, and then the life of the contract.

For each of these steps, the panellists of this PPP round table are going to detail what the difficulties may be, and will propose some tools and methods to overcome them. Several points of view are represented in this roundtable: the academic researchers’, the practitioners’ and the financial institutions’.

SYLLABUS

1. INTRODUCTION by PPP CHAIRMAN (15’), Cledan Mandri Perrot, Senior Infrastructure and PPP Specialist in the Finance and Economics department, World Bank

• Overview of PPP evolution, achievements and imperfections
• Presentation of the panellists

1. ASSESSING THE SOCIO-ECONOMIC UTILITY OF A PROJECT, Pierre Kopp, Professor at the University of Paris I and consultant

• Presentation of two different tools: the Cost-Benefit Analysis and the Cost-Efficiency Analysis, (15’)
• Discussion with the audience, (5’)

1. ASSESSING THE PERFORMANCE OF PRIVATE OPERATORS Vs PUBLIC OPERATORS, Eshien Chong, Professor in Economics, University of Paris Sud 11

• Presentation of the different trade-offs at stake for the choice between in-house production and outsourcing, through the Transaction Cost Theory, (15’)
• Discussion with the audience, (5’)

2. FUNDING, Pierre Kopp on behalf of Vincent Piron, VINCI Concessions - Strategy and Investment Director; Team Leader for CICA PPP WG

• Presentation of the trade-off between a funding by taxpayers and by users, through a socio-economic and financial model, (15’)
• Discussion with the audience, (5’)

1. RISK ALLOCATION, Enrique Fuentes (by conference call), Market Analysis and Development Director of Grupo Ferrovial – Chairman, EIC PPP WG

• Discussion about the guarantees for the operators, and about who should bear the different risks, (15’)
• Discussion with the audience, (5’)

1. PROCUREMENT, INCENTIVES AND CAPACITIES OF EXPERTISE OF LOCAL AUTHORITIES, Miguel Amaral, Lecturer (ATER) at the Department of Economics of the University Paris 1 Panthéon-Sorbonne

• Presentation of an econometric paper showing that contracts with high levels of incentives do not suffice to improve the operator’s efficiency. On the contrary, the operator’s efficiency depends on the capacity of expertise of the local authority, (15’)
• Discussion with the audience, (5’)

• Lunch (60’)

02:00 – 03:00 pm: ROUNDTABLE 4: PUBLIC PRIVATE PARTNERSHIP (PPP) (2)

1. PREPARING THE PROJET AND SELECTING THE OPERATOR: THE EXPECTATIONS OF THE INDUSTRY FOR SUCCESSFUL PPP PROJECTS, Marc Frilet, Avocat, Chair of the PPP Task Force of the International Bar Association and Chair of the PPP Task Force of the French Institute of International Legal Experts (IFEJI)

• Lessons learned from PPP in distress shows that in many cases this is due to a deficiency in the preparation process by the public authority. Based on day to day experiences, it is proposed to discuss essential milestones and related best practices, (15’)
• Discussion with the audience, (5’)

1. MANAGING THE LIFE OF THE CONTRACT, Julie de Brux, PhD in the Department of Economics of IAE, University Paris 1 Pantheon – Sorbonne, Member of the Chair on Economics of Public-Private Partnerships

• Presentation of a theoretical and empirical paper proposing a way to overcome one of the main problems of the execution of a PPP contract, i.e. the over-incentive to invest in cost-reduction at the expense of quality, (15’)
• Discussion with the audience, (5’)

1. GUARANTEING A SMOOTH SEQUENCE OF EVENTS : THE IMPORTANCE OF THE LEGAL FRAMEWORK, Mark Moseley, Lead Counsel - Energy, and GET Public-Private Partnerships Team Member, World Bank

• The point of view of the World Bank (15’)
• Discussion with the audience, (5’)

• Break (15’)

3. 3H15 pm – 5H30 pm ROUNDTABLE 5: THE WELL PREPARED PROJECT (WPP)

Many problems encountered by Contractors relate to the overall environment of the contract, i.e. the conditions governing its preparation and execution. In previous documents, CICA put forward a more rational approach based on ISO standards related to quality.

Even though current procurement rules for Public Authorities usually do not allow following that track, CICA takes the view that better project quality could be achieved through better project preparation and better definition of all stakeholders' duties and responsibilities.

The objective of CICA/IFI Roundtable 5 is to highlight these issues, with a view to proposing in the near future guidelines for a WELL PREPARED PROJECT.

SYLLABUS

1. Introduction by RT5 CHAIRMAN (20’), Michel Démarre, Senior International Advisor, Colas S.A. – Chairman of CICA WPP WG

• Presentation of the WELL PREPARED PROJECT - THE CONCERN
• Introduction of the Panelists by RT5 Chairman.

1. EMPLOYER CONSTRAINTS & DUTIES (15’), Steve DeWitt, Chief Engineer of the North Carolina Turnpike Authority
• Selection of the Procurement form
• The Project to be performed
• Time
• Political Environment
• Capacity, Competences (Skills) and responsibilities of the Employer
• Budgets, feasibility studies, project studies, cost of the Works
• Others
1. MDBs, TBC
1. Project Delivery Strategy (15’)
• Project Aid vs Budget Aid
• Methods and means for the evaluation of Capacity, organization and skills of the Employer before granting a loan. Conditions and covenants.
• Others

C.2 Role of the Regional Managers, Tasks Team Leaders (15’)

• Procedures oriented
• Project oriented
• Which Controls and means
• Others
1. The CONSULTANT/ENGINEER (15’), Mark E. Steiner, Senior Policy Director, American Council of Engineering Companies
• Selection (prequalification)
• Terms of Reference (Quality Criteria required by the Project – "Twingo vs Mercedes")
• Quality Cost Based Selection (QCBS) – Quality Based Selection (QBS) – Cost Based Selection (CBS)
• Responsibility limits, consequences.
• One single Consultant Involved in the whole Project Cycle
• Various consultants. Responsibility interfaces to be addressed.
• Impartiality and independence of the Engineer towards the Employer (who pays him)
• Others
1. The CONTRACTOR (15’), Frank Kehlenbach, EIC Director
• Prequalification and selection
• What is found on site vs what should have been found: Reality vs Tender Documents. Case studies.
• Possible incidence on
• Quality of the works VS Quality system
• Corrupted practices
• Claims / Final amount of the Works vs Contract Amount
• Delays
• Litigation / Arbitration
• Responsibility of the Contractor (Common Law / Civil Law)
• Environmental and Social Clauses
• Others
1. LEGAL (15’), Larry Harris, Attorney at Law, Member of the American College of Construction Lawyers (ACCL)
• Lawyer defends a Party (not the project)
• "Consensus Lawyer"
• Adjudicator
• Dispute Review Board [DRB] (edits an opinion) – Dispute Adjudication Board [DAB] ( edits a decision, but possible to be brought to a Judge)
• Others

1. Q/A (25’)

 

3. 5H30 pm – 6 H 00 pm CLOSING SPEECHES

1. World Bank Senior Management’s closing Speech, Jeff Gutman, Vice President Operations Policy and Country Services, World Bank
2. Federacion Interamericana de la Industria de la Construccion (FIIC) President’s Speech, Martin Carriquiry, FIIC President
3. CICA Presidents’ closing Speeches, Manuel R. Vallarino Q., CICA Acting President & Daniel Tardy, CICA Incoming President

END OF CICA-IFI 2010 CONFERENCE