PROCUREMENT POLICIES AND GUIDELINES WORLD BANK PROCUREMENT POLICIES AND GUIDELINES

ARTICLES OF AGREEMENT “The Bank shall impose no conditions that the proceeds of a loan shall be spent in the territories of any particular member or members” “The Bank shall make arrangements to ensure that the proceeds of any loan are used only for the purposes for which the loan was granted, with due attention to considerations of economy and efficiency, and without regard to political or other non-economic influences or considerations”

PRINCIPLES THAT GUIDE WORLD BANK PROCUREMENT POLICIES Need for economy and efficiency Give all eligible (qualified) bidders opportunity to compete Encourage development of local industries in borrowing country Procurement process to be transparent

GUIDELINES Procurement under IBRD Loans and IDA Credits (revised January 1995, January and August 1996, September 1997 and January 1999) Selection and Employment of Consultants (revised January 1997, September 1997 and January 1999)

GUIDELINES Accumulated experience of Bank/IDA Good public procurement practice on an international scale Incorporated in the Loan/Credit Agreement

GUIDELINES SECTIONS OF GUIDELINES PROCUREMENT I Introduction II International Competitive Bidding (ICB) III Other Methods of Procurement APPENDICES 1 Bank Review 2 Domestic Preference 3 Disbursements 4 Guidance to Bidders CONSULTANTS I Introduction II Quality-and-Cost-Based selection (QCBS) III Other Methods of selection IV Types of contracts important provisions APPENDICES 1 Bank Review 2 Information to Consultants 3 Disbursements 4 Guidance to Consultants

GUIDELINES INTRODUCTION PURPOSE To inform all concerned who carry out projects financed in whole or in part by a loan or credit from IBRD/IDA about arrangements for procurement of goods, works and related services, and define procedures for selecting, contracting and monitoring consultants required for such projects.

GUIDELINES SCOPE Guidelines describe all procurement methods and their procedures for all types of projects For specific project, only those methods and procedures of the guidelines apply which are considered appropriate for the project and agreed between Borrower and Bank and specified in Loan/Credit Agreement

GUIDELINES Need for economy and efficiency Give all eligible (qualified) bidders opportunity to compete Encourage development of local industries in borrowing countries Importance of transparency

GUIDELINES ELIGIBILITY Goods and works shall be provided by the nationals of, and produced in or supplied from Bank member countries

GUIDELINES EXCEPTIONS: A member country may be excluded if 1) as a matter of law or official regulation the borrower prohibits commercial relations with the member country; 2) prohibition by UNSC resolution A firm and its affiliates will be excluded from providing goods and works if it provided consulting services to the borrower for preparation or implementation of project

GUIDELINES Government-owned enterprises in borrower country can participate only if they are a) legally autonomous; b) financially autonomous; c) operate under commercial law; and d) are not a dependent agency of the borrower/sub-borrower A firm declared ineligible by Bank because of fraud or corruption will not be allowed to participate

GUIDELINES APPLICABILITY RESERVED PROCUREMENT Applies to all contracts for goods and works financed wholly or in part by Bank Loan/Credit RESERVED PROCUREMENT Reviewed at the time of pre-appraisal or appraisal Not financed by Bank If included under borrower’s own financing, contracts must be reasonable in terms of cost, quality and completion time

GUIDELINES CONFIDENTIALITY After bid opening information on evaluation of bids and recommendations for award should not be disclosed to bidders or others not officially concerned until award is announced

GUIDELINES FRAUD AND CORRUPTION Corrupt and fraudulent practices are unacceptable Sanctions by Bank: Will reject proposal for award Cancel the portion of the loan Declare firm ineligible for a limited period or indefinitely Bank reserves the right to audit firm’s accounts and records of the contract Special clause requiring bidders to observe national laws (including no-bribery) may be permitted with approval of the Bank

GUIDELINES REJECTING ALL BIDS NEGOTIATIONS Justification required If costs substantially higher than estimate If lack of competition If all bids non-responsive Review reasons before rebid Consider modifications in specs, conditions, etc. before rebid Bank’s prior no-objection requires NEGOTIATIONS As alternative to rebidding With the lowest evaluated bidder Bank’s prior no-objection required

GUIDELINES MISPROCUREMENT WHEN For goods and works any steps/procedure followed is inconsistent with agreed procedures under the loan/credit and guidelines Bank’s no-objection was obtained before award but on basis of incomplete, inaccurate, or misleading information RESULT Contract not financed Amount cancelled from loan/credit For repeated offenses even suspension of loan