Procurement Processes to Support

Implementation of ESHS Provisions

-An Overview

Robin Kumar Thakur

Procurement Specialist
The World Bank
The World Bank Vision

Vision for Sustainable Development

The WB Strategy sets out the corporate goals of ending extreme

poverty and promoting shared prosperity. Securing the long
term future of the planet, its people, and it resources-
ensuring social inclusion and limiting the economic burdens
on future generations will underpin these efforts
ESF- Environmental and Social Framework

The World Bank Environmental and Social Framework sets out the
World Bank’s commitment to sustainable development, through a
Bank Policy and a set of Environmental and Social Standards that
are designed to support Borrowers’ projects, with the aim of ending
extreme poverty and promoting shared prosperity.
 Timeline
Procurement Evolution of policy and the SPD (large works)
POLICY

Procurement Procurement
Guidelines Regulations

SPD Large Works SPD Large Works SPD Large Works

SPDs

Pre-Regulation & Pre-ESF Post-Regulation & Pre-ESF Post-Regulation & Post-ESF

SBD is ESHS compliant SPD is ESHS compliant SPD is ESF compliant
POLICY
E&S

ESHS Safeguards E&S Framework

FIDIC MDF New FIDIC

CONTRACT

“Pink Book” “Red Book”

provisions

Bank’s new
Particular Conditions
TIMELINE

JUL OCT JUL

2016 2018 2019

4
ESHS Considerations in Procurement Procedures
 Bank has always implemented provisions on Environmental,
Social, Health & Safety (ESHS) but now there is enhanced
emphasis on these issues

 Incorporating provisions in standard bidding documents to

address sexual harassment, GBV, child labour, promotion of
community engagement and adequate grievance redress that
ensure that contractors budget and implement the provisions
Addressing ESHS Risks through Procurement
 Promoting good ESHS practice through SPDs

 Supporting borrowers in setting appropriate ESHS policies, standards, measures, and

requirements

 Clarifying ESHS roles and responsibilities

 Assessing bidders/proposers capacity and capability to meet and comply with the
required ESHS standards

 Requiring bidders/proposers to address ESHS risks and impacts associated with the
project

 Proactively managing project delivery and quickly addressing ESHS performance

deficits.
Key stages in procurement
Stage-1: Identification of ESHS Risks
1. Environmental and Social Impact Assessment;
2. Environment and Social Management Frameworks;
3. Environmental and Social Management Plan;
4. Environmental and Social Commitment Plan;
5. Resettlement Policy Framework;
6. Resettlement Action Plan;
7. Permit or consent conditions, or any form of regulatory authority
conditions attached to any permits or approvals for the project; and/or
8. Regulations, general specifications, sector specific specifications, or
standard operating procedures.
Stage 3: Requirements/specifications/TOR
Procurement Actions- Specify the requirements and develop evaluation methodology

ESHS considerations
1. ESHS policies, standards, measures and requirements
2. ESHS information that bidders/proposers should submit e.g.:
a. their ESHS Code of Conduct
b. their initial ESHS Management Strategies and Implementation Plans (MSIP)
for specific risks
c. CVs of ESHS Key Personnel and their availability
d. ESHS reporting
Stage 5: Implementation
Procurement Actions- Proactively manage contract implementation and take
action to prevent, mitigate and manage ESHS risks

ESHS considerations
During contract implementation:
1. review and approve contractor’s ESHS MSIPs/C-ESMP
2. check compliance with the contractor’s ESHS Code of Conduct
3. ensure contractor submits ESHS reporting in full and on time
4. monitor reporting
5. take timely and appropriate action to manage emerging risks
Part-2 of SPD (Works Requirements)- ESHS Policy
Employer to include or refer to its ESHS Policy to clearly communicate the ESHS
expectations & outcomes. As a minimum, the policy is set out to the commitments to:
1. apply good international industry practice to protect and conserve the natural
environment and to minimize unavoidable impacts;
2. provide and maintain a healthy and safe work environment and safe systems of
work;
3. protect the health and safety of local communities and users, with particular
concern for those who are disabled, elderly, or otherwise vulnerable;
4. ensure that terms of employment and working conditions of all workers engaged
meet requirements of ILO conventions to which the host country is a signatory;
5. be intolerant of, and enforce disciplinary measures for illegal activities. To be
intolerant of, and enforce disciplinary measures for GBV, child sacrifice, child
Part-2 of SPD (Works Requirements)- ESHS Policy
6. incorporate a gender perspective and provide an enabling environment where
women and men have equal opportunity to participate in, and benefit from,
planning and development of the Works;
7. work co-operatively, including with end users of the Works, relevant
authorities, contractors and local communities;
8. engage with and listen to affected persons and organizations and be responsive
to their concerns, with special regard for vulnerable, disabled, and elderly
people;..
9. provide an environment that fosters the exchange of information, views, and
ideas that is free of any fear of retaliation;
10. minimize the risk of HIV transmission and to mitigate the effects of HIV/AIDS
associated with the execution of the Works;
Part-2 of SPD Works Requirements- ESHS Specifications
In preparing detailed specifications for ESHS requirements, the specialists should
refer to:
 project reports e.g. ESIA/ESMP
 consent/permit conditions
 required standards including World Bank Group EHS Guidelines
 national legal and/or regulatory requirements and standards (where these
represent higher standards than the WBG EHS Guidelines)
 relevant international standards e.g. WHO Guidelines for Safe Use of Pesticides
 relevant sector standards e.g. EU Council Directive 91/271/EEC Concerning
Urban Waste Water Treatment
 grievance redressal mechanisms.
Part-2 of SPD (Works Requirements)- ESHS CoC

A satisfactory code of conduct will contain obligations to address:

• Compliance with applicable laws, rules, and regulations of the jurisdiction

• Compliance with applicable health and safety requirements including wearing
prescribed personal protective equipment, preventing avoidable accidents etc.
• Non-Discrimination (on the basis of family status, ethnicity, race, gender, religion, …)
• Interactions with community members (convey an attitude of respect and non-
discrimination)
• Sexual harassment
• Violence or exploitation
• Protection of children
Part-3 of SPD ( Conditions of Contract)
• As a minimum, Contractor to implement approved Management
Strategies Implementation Plan (MSIP) & Code of Conduct

• C-ESMP approval must before commencement of construction

• Works, including mobilization and pre-construction, shall not

commence unless Engineer is satisfied with adequacy of measures
for ESHS risks and Impacts
Part-3 of SPD ( Conditions of Contract)- Performance Security

Performance Security
 in addition to the usual Performance Security, the contractor is now to
submit an ESHS Performance Security- normally between 1% to 3% of
the contract price
 Performance Security + ESHS Performance Security should not
normally exceed 10% of the contract price
 calling ESHS Performance Security added as a contractual remedy
Part-3 of SPD ( Conditions of Contract)- Reporting
•Immediate notifications for serious ESHS incidents e.g.:
 fatality or serious injury,
 pollution of drinking water,
 sexual harassment,
 child abuse

Metrics for regular progress reports e.g.:

 environmental, health and safety incidents,
 interactions with regulators, work permits,
 training,
 ESHS supervision,
 workers grievances
Part-3 of SPD ( Conditions of Contract)- Interim Payment

For breach of an ESHS obligation the employer may withhold:

the value of the work or obligation until it has been performed, or
the cost of rectifying or replacing until rectification or replacement has been
completed

Examples of breach includes failure to:

• comply with ESHS specifications;
• review/update C-ESMP;
• implement C-ESMP;
• implement ESHS remediation;
• to submit ESHS reports or submit reports in a timely manner.
ESHS- National Procurement Procedures (NPP)
• Procurement Regulations, Revision August 2018, relating to ESHS in NPP.

• Procurement Documents include provisions, as agreed with the Bank,

intended to adequately mitigate against environmental, social (including
sexual exploitation and abuse and gender-based violence), health and safety
(“ESHS”) risks and impacts
 ESHS- National Procurement Procedures (NPP)
Bank’s review of adequacy of NPP to manage the ESHS risks factors into following
provisions in the procurement documents:

• Bidder commitment to comply with ESHS requirements.

• Code of Conduct: to be submitted with bid and to be implemented during contract.
• MSIP: requirement for bidders to submit MSIP; approval by Employer; and update
of MSIP.
• Declaration of ESHS past performance: for evaluation of bids
• Qualification Criteria/ESHS experience: Relevant experience in managing ESHS
aspects to be included in qualification criteria, e.g. as part of the similar experience
requirements?
• Key personnel: ESHS key staff qualifications and experience
ESHS- National Procurement Procedures (NPP)

• Reporting requirements: for immediate reporting to the Borrower on

serious ESHS incidents, including fatalities, and gender based violence,
sexual exploitation and abuse (GBV/SEA).
• ESHS Policy & Specification: Do the NPP processes include appropriate
ESHS specifications? Is there a clear and simple overall statement of
ESHS objectives for the contract (ESHS Policy/Statement)?
• Contract variation: to submit ESHS information with variation proposal
• Remedies: withholding of payments; removal of personnel from the
works; forfeiting the ESHS performance security (if applicable).
Key STEPS to Remember
1. Borrower undertakes PPSD and prepares a Procurement Plan to assess and understand
market issues relating to ESHS issues. At this stage, consideration is given to using the
national procurement procedures or applying the Bank’s SPDs;

2. Bank reviews proposed national procurement documents (as necessary) and confirms
any ESHS measures necessary for them to be acceptable to the Bank;

4. Borrower prepares the procurement documents, considering the ESHS risks and
impacts identified during project preparation. Key actions for the Borrower are to:
a. Develop the ESHS Policy/Statement applicable for the Contract;

b. Identify and specify the minimum content for the contractor’s CoC;
Key STEPS to Remember
c. Review and extract the pertinent ESHS mitigation/requirements from ESIA,
ESMP, RAP, Permits, Consents, and/or other preparation documents that are to
be delivered by the contractor, and prepare a Specification that will obligate
the contractor to meet these requirements;

d. Identify the MSIPs and/or other ESHS information required to be submitted as

part of the Proposal;

e. Set out the minimum ESHS skills and experience needed on the contractor’s
staff (key personnel);

f. Review and finalize the reporting metrics for progress reporting;

Key STEPS to Remember
g. Specify the minimum ESHS experience needed for Qualification;
h. Clarify if an ESHS Performance Security is required and, if so, what
percentage should be specified;
i. Include specific ESHS deliverables, if required, as line items for pricing;

5. Borrower reviews bids, considering:

a) ESHS Declaration of past performance;
b) Substantive responsiveness of the MSIPs, CoC and method statement;
c) Substantive responsiveness of the proposed ESHS personnel;
d) Appropriate pricing of any ESHS line items;
Summary of ESHS during key stages in procurement
ESHS provisions in Standard Procurement Documents
ESHS provisions in Standard Procurement Documents
ESHS provisions in Standard Procurement Documents
THANK YOU