Presentation on theme: "Joint WTO/WB Regional Workshop on Procurement Reform and Transparency Session 4: Objectives of Procurement Regimes and Non-Discrimination and Preferences."— Presentation transcript:
Joint WTO/WB Regional Workshop on Procurement Reform and Transparency Session 4: Objectives of Procurement Regimes and Non-Discrimination and Preferences Basic Principles and Provisions for Procurement in Multilateral Instruments Mr. Jean-Jacques Raoul World Bank Dar es Salaam January 14-17, 2003
2 Purpose Briefly show commonalities in international instruments and national legislation regarding core principles of procurement, non-discrimination and preferences, using the World Bank Guidelines, and the UNCITRAL Model Law.
3 World Bank/MDB Financed Procurement Projects Obligations of the Borrower derive from a Loan Agreement (LA), which covers procurement refers to the WB Procurement and Consultant Guidelines defines procurement methods for Borrowers use supercedes provisions in the national law if inconsistent with LA
4 World Bank Guidelines: General Considerations Need for economy and efficiency Need for high-quality services (Consultants) Equal Opportunity to compete Encourage the development of national industry Importance of transparency in the process The same are stated in Preamble of UNCITRAL Model Law
5 Procurement Methods (Goods, Works and Related Services) Open competitive bidding must generally be used, with or without pre-qualification: International Competitive Bidding is preferred (allows for margin of domestic preference) National Competitive Bidding used for smaller contracts, unlikely interest of international bidders Basically, principles are similar for ICB and NCB, exceptions: language, advertisement media, bidding time, bid/contract currency, and terms of contract
6 Procurement Methods - 2 Other methods of procurement are allowed, as exceptions (Limited International Bidding, Shopping, Direct contracting) Misprocurement
7 Selection Methods (Consulting Services) Advertisement for expressions of interest, short list of qualified candidates, request for proposals, evaluation of technical and financial proposals Quality and Cost Based Selection is the preferred method – Quality: 80-90% weight, Cost: 20-10% weight. Other selection methods allowed if specified: Quality Based Selection, Selection under a fixed budget, least cost selection, selection based on qualification and single source selection
8 Non-Discrimination Provisions in WB Guidelines Eligibility: nationals from Bank-member countries (most other MDBs restrict nationality of bidders and origin of goods to eligible member countries) (Art 1.6) In respect to qualification, the Bank does not permit a Borrower to exclude a firm for reasons unrelated to its capability and resources to successfully perform the contract (Art 1.7) Primary boycott accepted if prescribed by law, provided this does not preclude effective competition (Art 1.8ai) Exclusion of nationals from countries under UN sanction (Art 1.8aii).
9 Preference Provisions in WB Guidelines Domestic preference for goods (15%) and works (7.5 %). Eligibility for goods having a minimum of 30% local content. Eligibility for domestic contractors in countries below specific of income per capita (MDBs have various provisions for domestic preference) No monetary preference for Consultants; however, participation of nationals as key staff in consultants proposals may be given additional points in technical evaluation.
10 Non-Discrimination Provisions in UNCITRAL Model Law Preamble highlights non-discrimination, fair and equitable treatment of all bidders, promotion of international trade Qualification based on bidders professional and technical competence; financial, physical and personnel resources, experience and reputation (Art 6.1b) The procuring entity shall impose no criterion, requirement or procedure with respect to the qualifications of bidders other than those provided for in this article (Art 6.3), The procuring entity shall establish no criterion, requirement or procedure with respect to the qualifications of bidders that discriminates against or among bidders … on the basis of nationality …. (Art 6.5), subject to: The procurement entity may decide, on grounds specified in the procurement regulations or according to other provisions of law, to limit participation on the basis of nationality; decision must be disclosed and recorded (Art 8)
11 Preference Provisions in UNCITRAL Model Law Margin of preference for domestic contractors or suppliers of services or for domestically produced goods, if authorized by the procurement regulations (Art 34.4d)
12 Conclusion WB Guidelines have specific provisions on eligibility and domestic preference The provisions of UNCITRAL Model Law are fully consistent with WB GL
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