1. PROCUREMENT POLICIES AND GUIDELINES
WORLD BANK
PROCUREMENT POLICIES AND GUIDELINES

2. 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”

3. 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

4. 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)

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

6. 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

7. 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.

8. 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

9. 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

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

11. 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

12. 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

13. 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

14. 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

15. 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

16. 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

17. 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