7th OECD Regional Policy Network Meeting on Sustainable Infrastructure - Mr. Chia Ser Huei, Director (Government Procurement Function Office), Ministry of Finance, Singapore

1. Ensuring Value-for-Money and Sustainability in Infrastructure
Procurement
Ministry of Finance, Singapore

2. Typical Infrastructure Procurement Process
2
Establishing
business needs
Engaging
design
consultant
Engaging
construction
contractor

3. Gateway Process for Major Infrastructure Projects
3
Establishing business
needs
Engaging
design
consultant
Engaging
construction
contractor
Gate 1: Concept
approval
Gate 2: Preliminary
design approval
Gate 3: Approval of
final design
Proposals are reviewed by Development Projects Advisory Panel
and the Ministry of Finance prior to approval at each Gate

4. Factoring Sustainability and VFM in Infrastructure Procurement
4
Establishing
business needs
Engaging
design
consultant
Engaging
construction
contractor
• Clarify
requirements
• Consider
alternative
options
• Cost-benefit
assessment
• Open tender
• Greater emphasis on
quality of bidder
• Iterative process with
consultant to derive
value-for-money
(VFM) and sustainable
designs over building
lifecycle
• Open tender
• Greater
emphasis on
price of bid

5. Factoring Sustainability and VFM in Infrastructure Procurement
5
Establishing
business needs
Engaging
design
consultant
Engaging
construction
contractor
• All new govt buildings, and existing
buildings undergoing major retrofitting,
are required to be designed to Green
Mark (GM) and maintainability standards,
and subject to standard regulations e.g.
Env Impact Assessment
• Proposals by design consultants are
reviewed to identify most VFM solution
that achieves sustainability over building
lifecycle
• Major contractors are
required to be certified
under Green & Gracious
Builder Scheme to be eligible
to tender for public projects
• Evaluation criteria takes into
account contractor’s
sustainable practices e.g.
recycling, dust/noise control

6. Green procurement can be implemented either through requirements,
evaluation criteria or both, depending on industry readiness
6
Solution-Focused Supplier-Focused
Procuring greener goods/services (can
include processes for the production of the
goods/services)
Definition
Procuring from suppliers that have
demonstrated commitment (beyond the
goods/services) to go green
Possible
implementations
Requirement:
Minimally meet specified standards related
to procured goods/services e.g. energy
efficiency labels, green building, green
venue, lesser packaging
1
Evaluation Criteria:
More points for desirable green
characteristics e.g. meet or surpass
specified requirements and certifications
2
Requirement:
Minimally meet specified standards related to
suppliers e.g. Disclose emissions and climate-
related financial risks of the supplier
1
Evaluation Criteria:
More points for desirable green
characteristics e.g. Suppliers who set and
achieve emission reduction targets
2
Generally, evaluation criteria are used to drive behaviours when industry is not ready (i.e. encourage early
adopters); while requirements are used when industry is ready (i.e. pushing the laggards)

7. Examples of solution-focused and supplier-focused
sustainability considerations in Govt Procurement
7
Solution-Focused Supplier-Focused
Sustainability Requirements
1. Electrical appliances: Meet the efficiency
standards
2. ICT equipment: Meet the latest ENERGY STAR
standards
3. Water efficiency: Meet specified standards such
as water efficiency or accreditations
4. Energy efficiency: Larger chilled water cooling
systems need to be linked to energy monitoring
systems or undergo regular energy audits
5. Vehicles: Clean energy vehicles with zero tailpipe
emissions.
6. Buildings: Attain Green Mark Platinum Super
Low Energy standards and indoor events to be
held at GM buildings.
Sustainability Considerations in Evaluation
Criteria
1. Agency A allocated 3-5% for tenders with value
more than $5mil to evaluate the tenderers’
commitment to environment, e.g. having
dedicated team focused on driving sustainability,
sustainability accreditation
2. Agency B allocated 5% of evaluation points in a
accommodation and event venue tender to
evaluate tenderers’ environmental performance
e.g. accreditations, certifications, awards

8. • Lack of common sustainability standards
• Likely high costs for first movers of new sustainable
requirements before achieving economies of scale
• Difficulty in assessing lifecycle costs accurately
• Rising costs amidst fiscal constraint; constructing
amidst high density
• Global events and uncertainty impacting supply
chain stability
Challenges

9. Thank you