Describes how major projects are secured and financed. Explains activities of the multilateral development banks in and other aid-funded projects
Selling to the Government
The rules governing sales to the Guinean government vary, depending on the amount of investment, source of funds, and nature of the material. Donor countries and institutions stipulate the bidding and award rules for foreign financed public investment projects. The Guinean Central Procurement Agency (AGCP) handles projects and contracts valued at over USD 1 million. The public market handles projects and contracts that are valued under USD 1 million. The government has recently identified the lax procurement regulatory environment as one of the most serious corruption loopholes and has targeted it for reform. These projects and contracts generally go to Guinea-based companies, and there have been allegations of non-competitive practices. Ministries and government organizations are responsible for the procurement of their own materials and services (not as part of an investment project). In many cases, the government does not meet payment obligations in a timely fashion, so advance payment is strongly recommended.
Companies looking to win contracts with the government can enhance their bids in the following ways:
- Competitive price;
- Identifying financing ahead of time;
- Implementing training programs and transferring skills to Guineans; and
- Developing strong corporate social responsibility programs and donating critical equipment to local institutions.
Potential challenges include:
- Lack of transparency in bidding and contracting;
- High perceived risk of investing in Guinea;
- Centralized decision making on major contracts with many decisions made at the Ministerial or Presidential level; and
- Competition from foreign state-owned enterprises or companies backed by foreign governments.
U.S. companies bidding on Government tenders may also qualify for U.S. Government advocacy. A unit of the U.S. Commerce Department’s International Trade Administration, the Advocacy Center coordinates U.S. Government interagency advocacy efforts on behalf of U.S. exporters bidding on public sector contracts with international governments and government agencies. The Advocacy Center works closely with our network of the U.S. Commercial Service worldwide and inter-agency partners to ensure that exporters of U.S. products and services have the best possible chance of winning government contracts. Advocacy assistance can take many forms but often involves the U.S. Embassy or other U.S. Government agencies expressing support for the U.S. bidders directly to the foreign government. Consult Advocacy for Foreign Government Contracts for additional information.
Financing of Projects
Multilateral Development Banks and Financing Government Sales. Price, payment terms, and financing can be a significant factor in winning a government contract. Many governments finance public works projects through borrowing from the Multilateral Development Banks (MDB). A helpful guide for working with the MDBs is the Guide to Doing Business with the Multilateral Development Banks. The U.S. Department of Commerce’s (USDOC) International Trade Administration (ITA) has a Foreign Commercial Service Officer stationed at each of the five different Multilateral Development Banks (MDBs): the African Development Bank; the Asian Development Bank; the European Bank for Reconstruction and Development; the Inter-American Development Bank; and the World Bank. Learn more by contacting the:
- Commercial Liaison Office to the African Development Bank
- Commercial Liaison Office to the World Bank