Public procurement and Infrastructure implementation risk management

1. Public procurement and Infrastructure implementation risk management 8 July 2019, Villa Mondragone Katharina Knapton-Vierlich, Head of Unit (acting) Public procurement strategy Directorate - GeneralforInternal Market, Industry, Entrepreneurship and SMEs, European Commission

2. Facts andFigures • 50% • ofthe ESIF • isspent via PP • 2014-2020 120 billion EUR • 14 % of EU GDP

3. Facts andFigures • • many large-scale infrastructure projects not executed according to the plan; • • budgets are frequently not respected and overspent; • • planning and implementation often take considerably longer than initially foreseen.

4. Facts andFigures • In our view, most overruns are foreseeable and avoidable. Many of the problems appear due to a lack of forward-looking risk management in all stages of the value chain and throughout the life cycle of a project.

5. General challenges in project preparation

6. Specific procurement risks

7. European Commission initiatives A partnershipwith Member States

8. A dedicated advisory hub:The voluntary ex ante assessment mechanismfor large infrastructure projects

9. infrastructure advisory hub

10. • the importance of having a strong project management team with experienced procurement experts and advisors in place cannot be overstated; • • the project management team and its advisors should take great care in developing a detailed procurement plan, selecting the appropriate tender procedure(s), and drafting proper tender documents and draft contract(s) prior to the formal start of the procurement procedures; • Any unresolved issues before launching public procurement procedures generate subsequent delays, due to requests for clarifications by the tenderers, the need to publish amendments, difficulties in the evaluation of the tenders, potential complaints, problematic contract management, etc.

11. Q&A