World Bank Procurement Framework
The new Procurement Framework, effective since July 2016, allows the World Bank to better respond to the needs of client countries, while preserving robust procurement standards throughout Bank-supported projects.
The new Framework enhances the strategic role of procurement in development effectiveness and thus helps countries make the best use of their public spending. The new rules provide an expanded range of procurement tools to ensure that procurement processes are fit for purpose, allow choice, and are appropriate to the size, value, and risk of the project.
Main features of the Bank’s new procurement policy
Under the new procurement framework, there are four key innovations to help businesses and country clients:
The needs and risks of a project are analysed through a Project Procurement Strategy for Development which enables the Bank’s borrowers to have a strategy on how best to engage with bidders.
Value for Money has been introduced as a core procurement principle in all procurements financed by the World Bank. This means a shift in focus from the lowest evaluated compliant bid to bids that provide the best overall value for money, taking into account quality, cost, and other factors as needed.
The approach to resolving procurement-related complaints has been significantly improved with capacity to promptly respond to any concerns during the procurement process. A standstill period has been introduced so that other bidders can voice any concerns before a contract is actually legally formed and awarded.
The World Bank will be more involved in contract management of procurements with high value and high risk to ensure the best possible outcomes and that problems are resolved quickly.
Concerns about the use of Alternative Procurement Arrangements
EIC welcomes the newly introduced approach which gives Borrowers more choices for the tender procedure. EIC warns, however, that the new option for the World Bank to rely on the procurement rules and procedures of an agency or entity of the Borrower is open to abuse. It is not entirely clear which conditions have to be in place in order to allow an individual borrower to use its own procurement rules and regulations and what internal process the Bank will follow to decide on the applicability.
EIC has mentioned during the consultation phase that the new procurement framework no longer calls for the “equivalence” of Alternative Procurement Arrangements but the respective standard has been watered down to “acceptable” procurement practices. In EIC’s view, this criterion is not measurable and will not help to ensure the transparency and accountability of the transition process, nor is it destined to give verifiable results.