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PROCUREMENT POLICIES AND GUIDELINES

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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 ... – PowerPoint PPT presentation

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Title: PROCUREMENT POLICIES AND GUIDELINES


1
PROCUREMENT POLICIES AND GUIDELINES
WORLD BANK
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
GUIDELINESSECTIONS 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
  • 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 borrowers 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 firms 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
  • 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
  • Banks prior no-objection requires
  • NEGOTIATIONS
  • As alternative to rebidding
  • With the lowest evaluated bidder
  • Banks 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
  • Banks 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
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