SI-5251 ASPEK LEGAL DAN MANAJEMEN KONTRAK

Public Procurement for International

Project Financed by the Loans and Grants

FAKULTAS TEKNIK SIPIL DAN LINGKUNGAN

INSTITUT TEKNOLOGI BANDUNG May 2024

Sample: LOAN AGREEMENT - ADB

LOAN AGREEMENT

The Bank The Borrower

(the Government)

The The Executing

The Beneficiary Project Agency

PROCUREMENT
Contractor
PROCUREMENT GUIDELINES
SI-5251 LEGAL ASPECTS
SI-5251 & CONTRACT
Legal &MANAGEMENT
Aspek Manajemen Kontrak 2
SI-5251 LEGAL ASPECTS & Aspek
CONTRACT
Legal MANAGEMENT
SI-5251 & Manajemen Kontrak 3
 World Bank project consists of six stages:
• Identification
• Preparation
• Appraisal
• Negotiation/Approval
• Implementation/Support
• Completion/Evaluation
https://projects.worldbank.org/en/projects-operations/products-and-services/brief/projectcycle

SI-5251 LEGAL ASPECTS

SI-5251&Aspek
CONTRACT
Legal &MANAGEMENT
Manajemen Kontrak 4
 https://projects.worldbank.org/en/projects-operations/products-and-services/brief/projectcycle

SI-5251 LEGAL ASPECTS

SI-5251&Aspek
CONTRACT MANAGEMENT
Legal & Manajemen Kontrak 5
 1. Identification
• The World Bank, jointly with IFC and MIGA, works with a borrowing country's
government and other stakeholders to determine how financial and other
assistance can be designed to have the largest impact.
• After analytical work is conducted, the borrower and the Bank Group produce
a strategy, called Country Partnership Framework, to identify the country’s
highest priorities for reducing poverty and improving living standards
• Documents (prepared by the Bank)
• Project Concept Notes
• Project Information Documents
• Integrated Safeguard Data Sheet

SI-5251 LEGAL ASPECTS

SI-5251&Aspek
CONTRACT MANAGEMENT
Legal & Manajemen Kontrak 6
 2. Project Preparation
• The borrower government and its implementing agency(ies) is responsible to
conduct feasibility studies and prepare engineering and technical designs, to name
only a few of the work products required.
• The government contracts with consultants and other public sector companies.
Beneficiaries and stakeholders are also consulted now to obtain their feedback
and ensure the project meets their needs.
• The World Bank generally takes an advisory role and offers analysis and advice when
requested and does assess the relevant capacity of the implementing agencies, in order
to reach agreement with the borrower about arrangements for overall project
management, such as the systems required for financial management, procurement,
reporting, and monitoring and evaluation.
• Document prepared by the Borrower;
Ref. The World Bank’s
• Environment Assessment Report
Environmental and Social Framework
• Environment Action Plan
• Indigenous People Plan
• Procurement
SI-5251 AspekPlan
Legal & Manajemen Kontrak 7
 3. Project Appraisal
• The government and the World Bank review the work done during the identification
and preparation phases and confirm the expected project outcomes, intended
beneficiaries and evaluation tools for monitoring progress.
• Agreement is reached on the viability of all aspects of the project at this time.
• The Bank team confirms that all aspects of the project are consistent with all World
Bank operations requirements and that the government has institutional
arrangements in place to implement the project efficiently.
• All parties agree on a project timetable and on public disclosure of key documents
and identify any unfinished business required for final Bank approval.
• Document prepared by the Bank and Borrower:
• Draft Legal Agreement

SI-5251 LEGAL ASPECTS

SI-5251&Aspek
CONTRACT MANAGEMENT
Legal & Manajemen Kontrak 8
 4. Negotiation & Project Approval
• Once all project details are negotiated and accepted by the government and
the World Bank, the project team prepares:
• the Project Appraisal Document (for investment project financing) or
the Program Document (for development policy financing), along with
other financial and legal documents,
• for submission to the Bank's Board of Executive Directors for consideration
and approval. When funding approval is obtained, conditions for effectiveness
are met, and the legal documents are accepted and signed, the implementation
phase begins.
• Documents prepared by the Bank
• Project Appraisal Document (final – PAD)
• Legal Agreement (final – Loan Agreement)
• Memorandum of President
SI-5251 LEGAL ASPECTS & CONTRACT
Legal & MANAGEMENT
SI-5251 Aspek Manajemen Kontrak 9
5. Project Implementation
• Once underway, the implementing government agency reports regularly on project
activities. The government and the Bank also join forces twice a year to prepare a
review of project progress, the Implementation Status and Results Report.
• Document prepared by the Borrower (and the Bank)
• Implementation Status and Result Report
• The Bank's Independent Evaluation Group (IEG) assesses the performance of
roughly one project out of four (about 70 projects a year), measuring outcomes
against the original objectives, sustainability of results and institutional
development impact. From time to time, IEG also produces Impact Evaluation
Reports to assess the economic worth of projects and the long-term effects on
people and the environment against an explicit counter-factual.
• Report prepared by the Bank’s IEG:
• Impact Evaluation Report
SI-5251 Aspek Legal & Manajemen Kontrak 10
Sample: LOAN AGREEMENT - ADB

SI-5251 Aspek Legal & Manajemen Kontrak 11

Sample: LOAN AGREEMENT - ADB

In conjunction with FIDIC sub-clause 1.15 Inspection and Audit by the Bank

SI-5251 LEGAL ASPECTS

SI-5251&Aspek
CONTRACT MANAGEMENT
Legal & Manajemen Kontrak 12
Sample: LOAN AGREEMENT - ADB

13
ADB PROCUREMENT GUIDELINES

After 1 July 2017

SI-5251 LEGAL ASPECTS
SI-5251&Aspek
CONTRACT MANAGEMENT
Legal & Manajemen Kontrak 14
ADB PROCUREMENT GUIDELINES

SI-5251 LEGAL ASPECTS

SI-5251&Aspek
CONTRACT MANAGEMENT
Legal & Manajemen Kontrak 15
ADB PROCUREMENT GUIDELINES

I. Introduction
II. International Competitive Bidding
III. Other Methods of Procurements
Appendix 1 ADB Review of Procurement Decisions
Appendix 2 Domestic Preferences
Appendix 3 Guidance to Bidders

SI-5251 LEGAL ASPECTS

SI-5251&Aspek
CONTRACT MANAGEMENT
Legal & Manajemen Kontrak 16
Sample: LOAN AGREEMENT - ADB

SI-5251 LEGAL ASPECTS

SI-5251&Aspek
CONTRACT MANAGEMENT
Legal & Manajemen Kontrak 17
ADB PROCUREMENT GUIDELINES

SI-5251 LEGAL ASPECTS

SI-5251&Aspek
CONTRACT MANAGEMENT
Legal & Manajemen Kontrak 18
ADB PROCUREMENT GUIDELINES

SI-5251 LEGAL ASPECTS

SI-5251&Aspek
CONTRACT MANAGEMENT
Legal & Manajemen Kontrak 19
ADB PROCUREMENT GUIDELINES

SI-5251 LEGAL ASPECTS

SI-5251&Aspek
CONTRACT MANAGEMENT
Legal & Manajemen Kontrak 20
ADB PROCUREMENT GUIDELINES

SI-5251 LEGAL ASPECTS

SI-5251&Aspek
CONTRACT MANAGEMENT
Legal & Manajemen Kontrak 21
ADB PROCUREMENT GUIDELINES

SI-5251 LEGAL ASPECTS

SI-5251&Aspek
CONTRACT MANAGEMENT
Legal & Manajemen Kontrak 22
ADB PROCUREMENT GUIDELINES

SI-5251 LEGAL ASPECTS

SI-5251&Aspek
CONTRACT MANAGEMENT
Legal & Manajemen Kontrak 23
IsDB PROCUREMENT GUIDELINES

Chp.1 General Provisions

Chp.2 International Competitive Bidding
Chp.3 Other Methods of Procurements
Chp.4 Special Procurement Arrangements
Annex-A IsDB’sPrior and Ppost Reviewes
Annex-B Guidance to Bidders
Annex-C Procurement-related complaints
Annex-D Margin of Preference
Annex-E Public-Private-Partnerships
Annex-F Retroactive Financing

SI-5251 LEGAL ASPECTS

SI-5251&Aspek
CONTRACT MANAGEMENT
Legal & Manajemen Kontrak 24
IsDB PROCUREMENT GUIDELINES

SI-5251 LEGAL ASPECTS

SI-5251&Aspek
CONTRACT MANAGEMENT
Legal & Manajemen Kontrak 25
IsDB PROCUREMENT GUIDELINES

SI-5251 LEGAL ASPECTS

SI-5251&Aspek
CONTRACT MANAGEMENT
Legal & Manajemen Kontrak 26
IsDB PROCUREMENT GUIDELINES

SI-5251 LEGAL ASPECTS

SI-5251&Aspek
CONTRACT MANAGEMENT
Legal & Manajemen Kontrak 27
IsDB PROCUREMENT GUIDELINES

SI-5251 LEGAL ASPECTS

SI-5251&Aspek
CONTRACT MANAGEMENT
Legal & Manajemen Kontrak 28
IsDB PROCUREMENT GUIDELINES

SI-5251 LEGAL ASPECTS

SI-5251&Aspek
CONTRACT MANAGEMENT
Legal & Manajemen Kontrak 29
Procurement for JICA (Loans and Grants)

There are three types of Grants:

1. general budget support, in which purposes and expense items are not
specified;
2. budget support for a sector in which purposes and expense items are
limited to a certain sector; and
3. budget support for a common fund in which support is given to a special
account opened by the government of a partner country or a supporting
agency.
JICA PROCUREMENT GUIDELINES

Part-1 General
Part-2 International Competitive Bidding

SI-5251 LEGAL ASPECTS

SI-5251&Aspek
CONTRACT MANAGEMENT
Legal & Manajemen Kontrak 31
JICA PROCUREMENT GUIDELINES

SI-5251 LEGAL ASPECTS

SI-5251&Aspek
CONTRACT MANAGEMENT
Legal & Manajemen Kontrak 32
JICA PROCUREMENT GUIDELINES

SI-5251 LEGAL ASPECTS

SI-5251&Aspek
CONTRACT MANAGEMENT
Legal & Manajemen Kontrak 33
JICA PROCUREMENT GUIDELINES

SI-5251 LEGAL ASPECTS

SI-5251&Aspek
CONTRACT MANAGEMENT
Legal & Manajemen Kontrak 34
JICA PROCUREMENT GUIDELINES

SI-5251 LEGAL ASPECTS

SI-5251&Aspek
CONTRACT MANAGEMENT
Legal & Manajemen Kontrak 35
JICA PROCUREMENT GUIDELINES

Part-1 Basic Principles

Part-2 Guideline for the Use of the Agent
Part-3 Guidelines for the Procurement of
Products and Services by the Agent

SI-5251 LEGAL ASPECTS

SI-5251&Aspek
CONTRACT MANAGEMENT
Legal & Manajemen Kontrak 36
JICA PROCUREMENT GUIDELINES

SI-5251 LEGAL ASPECTS

SI-5251&Aspek
CONTRACT MANAGEMENT
Legal & Manajemen Kontrak 37
JICA PROCUREMENT GUIDELINES

SI-5251 LEGAL ASPECTS

SI-5251&Aspek
CONTRACT MANAGEMENT
Legal & Manajemen Kontrak 38
JICA PROCUREMENT GUIDELINES

SI-5251 LEGAL ASPECTS

SI-5251&Aspek
CONTRACT MANAGEMENT
Legal & Manajemen Kontrak 39
JICA PROCUREMENT GUIDELINES

SI-5251 LEGAL ASPECTS

SI-5251&Aspek
CONTRACT MANAGEMENT
Legal & Manajemen Kontrak 40
JICA PROCUREMENT GUIDELINES

SI-5251 LEGAL ASPECTS

SI-5251&Aspek
CONTRACT MANAGEMENT
Legal & Manajemen Kontrak 41
JICA PROCUREMENT GUIDELINES

SI-5251 LEGAL ASPECTS

SI-5251&Aspek
CONTRACT MANAGEMENT
Legal & Manajemen Kontrak 42
The WOLRD BANK PROCUREMENT GUIDELINES

I. Introduction
II. International Competitive Bidding
III. Other Methods of Procurement
Appendix-1 Review by the Bank of Procurement
Decision and Publication of Awards of
Contract
Appendix-2 Domestic Preferences
Appendix-3 Guidance to Bidders

SI-5251 LEGAL ASPECTS

SI-5251&Aspek
CONTRACT MANAGEMENT
Legal & Manajemen Kontrak 43
The WOLRD BANK PROCUREMENT GUIDELINES

SI-5251 LEGAL ASPECTS

SI-5251&Aspek
CONTRACT MANAGEMENT
Legal & Manajemen Kontrak 44
The WOLRD BANK PROCUREMENT GUIDELINES

SI-5251 LEGAL ASPECTS

SI-5251&Aspek
CONTRACT MANAGEMENT
Legal & Manajemen Kontrak 45
The WOLRD BANK PROCUREMENT GUIDELINES

SI-5251 LEGAL ASPECTS

SI-5251&Aspek
CONTRACT MANAGEMENT
Legal & Manajemen Kontrak 46
The WOLRD BANK PROCUREMENT GUIDELINES

SI-5251 LEGAL ASPECTS

SI-5251&Aspek
CONTRACT MANAGEMENT
Legal & Manajemen Kontrak 47
The WOLRD BANK PROCUREMENT GUIDELINES

SI-5251 LEGAL ASPECTS

SI-5251&Aspek
CONTRACT MANAGEMENT
Legal & Manajemen Kontrak 48
The WOLRD BANK PROCUREMENT GUIDELINES

SI-5251 LEGAL ASPECTS

SI-5251&Aspek
CONTRACT MANAGEMENT
Legal & Manajemen Kontrak 49
 Note on Procurement Financed by Loans & Grants

SI-5251 LEGAL ASPECTS

SI-5251&Aspek
CONTRACT MANAGEMENT
Legal & Manajemen Kontrak 50
SI-5251 ASPEK LEGAL DAN MANAJEMEN KONTRAK

End of Lecture on International Project

Financed by the Loans or Grants

FAKULTAS TEKNIK SIPIL DAN LINGKUNGAN Biemo W. Soemardi

INSTITUT TEKNOLOGI BANDUNG
b.soemardi@itb.ac.id