Michael Dethlefsen Chief Procurement Services

1. Michael Dethlefsen Chief Procurement Services EU UN Procurement Seminar Global B2B Partnerships

2. Many developing countries gain independence, national authorities regain legitimate control over domestic resources, charter a new course of economic progress. Global political uncertainty - the world divided by the Cold War. Growing reliance on local assets; manufacturing seen as a key vehicle of economic development. Transformation of minerals and agricultural crops creates value, generates employment, foreign exchange, supplies local markets with consumer goods. A dedicated UN Agency - a unique neutral access to foreign technology and know-how, with unrivalled technical competence and global experience. Some 40 years ago

3. Industry – A Path Out Of Poverty • Free markets, regulation? • No growth without industrialization • Fast growing countries have fast growing manufacturing sectors • Structural change – shift of resources from low to high productivity sectors • Driver of growth – industry often the high-productivity sector • UNIDO research: growth has lagged in countries that have not shifted capital, labor from low to high-productivity sectors • Industry matters for MDGs: it fills the gap between the required and the actual growth rate

4. History 1961 Centre for Industrial Development created within the Department of Economic and Social Affairs 1966 UN General Assembly Resolution 2152 establishes UNIDO as an autonomous body, to “promote and accelerate the industrialization of the developing countries” 1985 UNIDO becomes a specialized agency of the United Nations - with its own constitution, member states, policymaking organs, executive head, and a regular budget

5. UNIDO’s mandate is to promote sustainable industrial development UNIDO is the only UN specialized agency promoting the creation of wealth and tackling poverty through industry/manufacturing The Organization today

6. Kandeh K. Yumkella (Sierra Leone) appointed in 2005 Reconfirmed for a second four-year term in office December 2009 UNIDO Director-General “In today’s knowledge economy, it is not just the nuts and bolts at the country level that matter. We must move upstream to be part of the global debate. We must give countries the opportunity to express their views on industry, and help them to frame the policies they need for equitable growth.” Yumkella

7. 173 Member States (as of 3 December 2008) Meet every two years at the General Conference, UNIDO’s supreme governing body (determines guiding principles/policies, approves budget, work programme, appoints Director-General) GC elects representatives to the 53 seats on the Industrial Development Board and to the 27 seats on the Programme and Budget Committee Governing bodies

8. Three inter-related thematicpriorities Poverty reduction through productive activities Trade capacity building Energy and Environment

9. Assistance delivered through two core functions: - As a global forum, UNIDO generates and disseminates knowledge related to industry and provides a platform to enhance cooperation, establish dialogue and develop partnerships - As a technical cooperation agency, UNIDO designs/implements programmes to support its clients. It also offers tailor-made specialized programme development support TC Delivery

10. Key approach: Empowerment of the poor through productive activities, job creation and income generation Poverty reduction throughproductive activities

11. Programmes: - SME cluster development - Local-market agro-based industries - Post-harvest processing - Rural development - Women in development - Rural energy combined with productive activities - Linking small with large companies Poverty reduction throughproductive activities

12. Poverty reduction through productive activities Ghazni and Heart provinces - service delivery flow of US $ 6 million per year. In the field of agri-based industries (food processing, textiles industry: especially cotton, wool, carpets) UNIDO TC assistance on private sector development, industrial competitiveness, trade capacity building, renewable energy for productive activities.

13. Poverty reduction through productive activities From housewife to entrepreneur to millionaire, by being trained by UNIDO’s Investment and Technology Promotion Office President George W. Bush described her at the World Economic Forum (Sharm El Sheikh, Egypt) as an inspiring example for the whole region. “I would not have become what I am today without the support of the United Nations Industrial Development Organization… I now own five companies with 15 different activities, and they have a capital of $12 million and employ 75 people.” Bahraini entrepreneur Huda Janahi

14. Poverty reduction through productive activities Refurbishing computers for SMEs in Uganda Small and medium businesses in less developed countries lack access to hardware and software to leverage the benefits of information and communication technology. UNIDO and Microsoft work together to address this need, and to extend the useful life of PCs. Give people the right tools, empower them with the right knowledge and provide them with the right opportunity and they will build their own futures

15. Trade capacity building • Compete: remove supply side constraints and increase the competitiveness of the industrial • sector. • Conform: enable products to conform to market requirements (standards, technical regulations • and conformity assessment procedures) and overcome barriers to trade. • Connect: enable producers to connect with the market and foster integration in the multilateral • trading system.

16. Trade capacity building Lake Victoria (shared by Tanzania, Uganda, Kenya) Revenues from fish exports over US$ 200 million/year, half a million people live of the trade EU export ban imposed, exports from Uganda alone drop by 50% => UNIDO helped introduce reliable production safety system, appropriate fish handling (fish icing and boxing), inspection guides

17. Trade capacity building “Farm to fork” Improving quality and standardization (on institutional and enterprise level) to help developing countries enter global food value chains. UNIDO's Egyptian Traceability Centre for Agro-Industrial Exports (ETRACE) ensures that food products are safe for consumption and suited for export. ETRACE helps farmers and producers comply with international quality, safety and traceability standards and regulations.

18. Key approach: - Prevent production of industrial wastes - Manage waste in an environmentally sound manner - De-link the intensity of energy use from economic growth - Reduce the environmental impact of energy use - Provide energy for the promotion of productive activities Energy and environment

19. Lighting Up Kenya UNIDO has committed EUR 1.5 million to a green energy project called Lighting Up Kenya to generate additional power for the country via solar energy, biomass, wind and biogas. Energy and environment

20. Energy and environment UNIDOimplemented a US$ 8 million project in China to reduce greenhouse gas emissions from the township and village enterprises sector. Increasing the utilization of energy efficient technologies and products in the brick, cement, metal casting and coking sectors. Result: Greenhouse gas reduction of 1 million CO2 per year (including the 110 plants where the technology developed for the cement, brick, coking and foundry sectors was replicated).

21. Energy and environment UNIDO International Solar Energy Centre. Located in Lanzhou, Gansu Province, it has 10 laboratories and 100 scientists, experts and researchers from around the world. Helps develop and upgrade solar energy technologies, establish standards for solar technologies and products and promote international cooperation. The lighting, heating and hot water systems are all operated using the sun’s power.

22. Environment Programmes: - Montreal Protocol to protect the ozone layer - Stockholm Convention on persistent organic pollutants (POPs) and international waters - Cleaner ProductionCentres (with UNEP) Energy and environment

23. Energy and environment

24. Programmes: Industrial Energy Efficiency (also carbon emissions) Rural (renewable) energy for small and medium enterprczes UNIDO Director-General appointed Chair of UN Energy2008-2009 (20 UN Agencies and programmes, mechanism for coordination and greater coherence of action on energy) Energy and environment

25. Algeria, Cameroon, China, Colombia, Côte d'Ivoire, Egypt, Ethiopia, Ghana, Guinea, India, Indonesia, Iran, Kenya, Lebanon, Madagascar, Mexico, Morocco, Nigeria, Pakistan, Philippines, Senegal, South Africa, Sudan, Thailand, Tunisia, Tanzania, Uruguay, Viet Nam Desks in UNDP offices in Afghanistan, Angola, Armenia, Bolivia, Burkina Faso, Ecuador, Eritrea, Jordan, Laos, Mali, Nicaragua, Rwanda, Sierra Leone, Zimbabwe UNIDO Field Offices

26. Bahrain Belgium Brazil China France (Marseille and Paris) Greece Italy Japan South Korea Mexico Promote the countries’ industrial projects in developing countries. Identify business opportunities, reliable investment projects, facilitate business cooperation. Investment and Technology Promotion Offices

27. A series of international energy conferences in 2009 Green Industry for a Low-Carbon Future

28. Manila, 9-11 September 2009 - International Conference on Green Industry in Asia Leon, Mexico, 7-9 October 2009 - Global Renewable Energy Forum

29. Enhancing the role of agribusiness and agro-industries in promoting food security, employment generation and sustainable economic growth in Africa March 2010 - high-level conference in Abuja, Nigeria.

30. Around 700 staff members at HQs and other established offices Services of some 3,000 international and national experts annually who work on projects throughout the world 50% of international and national experts from developing countries Staff

31. Operations budgeted on a biennial basis Three components: - Regular Budget (financed by assessed contributions of Member States) - Operational Budget (financed from Technical Cooperation support costs) - Voluntary Contributions Budget for the 2008-2009 biennium - €381.6 million Regular Budget - €154,6m Operational Budget - €22.1m Voluntary Contributions - €204.9 million Budget

32. UNIDO Procurement Volume 2009: €62 million

33. Top 15 Supplier Countries

34. Top 10 EU Supplier Countries

35. Top Goods & Services Procured • Equipment: • Replacement and Substitution of CFCs in Refrigeration, Solvents, Aerosols and Foam Sectors • Replacement and Substitution of Carbon Tetrachloride in Pesticides Production, Degreasers, etc • Replacement and Substitution of Methyl Bromide Measuring, Checking & Testing Instruments • Supply and Delivery of Laboratory Equipment • Supply and Delivery of Equipment for Textile & Leather Production • Supply, Delivery and Installation of Agricultural & Food Processing Equipment and Machinery • Supply and Delivery of IT Equipment • Supply and Delivery of Motor Vehicles • Services: • Phase-out Ozone Depletion in Refrigeration, Foam, Aerosols and Solvents Sectors • Phase-out of Methyl Bromide • Trade Promotion and Technology Information Exchange • Standardization and Laboratory Accreditation • Renewable and Rural Energy • Advisory Services for Environmental Protection • Water Management Services • Training Services • Engineering Design • Agri Related Services (Textile, Leather, Fisheries, Food…)

36. Examples of Evaluation Criteria • Understanding of the Scope of Services and Supply • Conformity with Technical Requirements • Delivery Time/Warranty Conditions • Appropriate After-Sales Service • Proven Production Capacity & Financial Strength • Acceptance of UNIDO Contractual Terms and Conditions • References • Compliance with International/National Standards • Price/Payment Terms

37. Practical Hints for Potential Suppliers • Make use of Information/Publications available on UNIDO Web Site www.unido.org • Register on the UN Global Marketplace (UNGM) • Regularly Monitor Procurement Opportunities Published on UNIDO and UNGM Web Sites • Always Respond When Invited to Submit a Bid, even if You Should Not be in a Position to Participate • Study Bidding Documents Carefully • Use Your Right to Ask for Clarification if Anything in the Bidding Documents is Unclear • Ensure that Your Bid Meets ALL Requirements; If You Cannot Meet all Requirements Consider to Sub-Contract or Form Joint-Venture/Consortium • Submit Required Certificates, Financial Statements, Catalogues, Reports, Etc in the Required Format and Language • Clearly Mark and Sign Bids as Required • Meet Deadline for Submission Of Bids

38. Registration as UNIDO Supplier • UNGM guides companies through all steps required to complete application • Application is reviewed by UNIDO Procurement Services Unit and, if found acceptable, confirmed • Companies may also subscribe to Tender Alert Service to receive new procurement notices as and when they are published • Pre-qualification is occasionally used in complex service contracts; by using pre-qualification criteria, i.e. experience and references, capacity, financial & organizational strength & stability etc.

39. Global B2B Partnerships • Which Type of Organization should Companies Normally Adopt? • Sub-Contracting • What are UNIDO’s Rules on Collaborations With Local Business Partners? • Please refer to the general instructions to bidders section, requiring bidders to specify in their Technical Bids: • the names and qualifications (including description of activities, number of personnel employed, references to the clients and completed projects) of the proposed sub-contractor(s) and/or equipment manufacturers, if any, and the extent and nature of such sub-contracting and/or equipment ;

40. Sub-Contracting Most common form of collaborations among companies dealing with UNIDO UNIDO concludes contract with one company (“the Contractor”) Contractor concludes individual contracts with sub-contractors • Sub-contractors need to be indicated in the Technical Bid which will become part of the Contract under consideration • In case of non-performance, UNIDO only deals with the Contractor, not with sub-contractors Prepared by:

41. Consortia • In principle, permitted by UNIDO – but rarily applied (e.g. building works for HQs) • Requirements: • Bidders need to provide written declaration indicating: • - members of consortium • - nomination of the leading company with whom contract would be signed • - purpose of establishment of a consortium • - depending on the ‘form’ of a consortium attach all ‘legal’ documents • Once declaration has been received and accepted, separate bids by member of the consortium are not permitted and may be disregarded • UNGM registration: with UNIDO recommended, but not yet a requirement for participating in the Bidding exercise Prepared by:

42. Visit the website of First issue of a new quarterly Magazine that aims to stimulate debate about global industrial development issues

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