WORLD BANK PROCUREMENT POLICIES AND PROCEDURES 1

 To fight poverty with lasting results.  To help people help themselves and their environment by  Providing Resources  Sharing Knowledge  Building Capacity  Forging Partnerships in the Public & Private Sectors 2 WB MISSION

 Loans Credits and Grants are provided to the governments of developing countries to finance investments and promote economic growth through:  Infrastructure projects  Economic reform packages  Technical assistance 3 LOANS, CREDITS AND GRANTS

The Bank also provides technical assistance: expert advice to help governments make specific sectors of their economies more efficient and relevant to national development goals 4 Technical Assistance

 IDENTIFICATION  PREPARATION  APPRAISAL  NEGOTIATIONS  IMPLEMENTATION  EVALUATION 5 THE PROJECT CYCLE

JOINT BORROWER/BANK INVOLVEMENT  SOURCES  Bank Country/Sector Work  Country Offices  Prior Projects  Multilateral/Bilateral Agencies 6 IDENTIFICATION

 PROVIDES OUTLINE OF PROJECT  Beneficiaries  Alternatives  Issues  Processing Requirements 7 IDENTIFICATION (Contd.)

 Responsibility Of Borrower  Available Assistance  Borrower  Bank  Project Preparation Facility  Technical Assistance Loans 8 PREPARATION

 Engineering Loans  Previous Loans  Retroactive Financing  Multilateral/Bilateral Agencies 9 PREPARATION (Contd.)

 Studies (Technical, Environmental, Financial)  Tasks [Surveys, Mapping]  Final Designs, Bid Documents  Staffing And Training  Office Equipment, Vehicles 10 PREPARATION (Contd.)

 RESPONSIBILITY OF BANK  Multi-disciplinary Team [Field]  Project Appraisal Document [PAD]  ECONOMIC ANALYSIS  Benefit To Country  Poverty Reduction  TECHNICAL  Review Of Design, Cost Estimates  Implementation Schedule 11 APPRAISAL

 INSTITUTIONAL  Capability To Implement Project  Training, Staff Needs  FINANCIAL  Project Financial Viability  SOCIOLOGICAL  Beneficiaries 12 APPRAISAL (CONTD.)

 Preparation Of Legal Agreement  Covenants  Conditionalities  Progress Report  Presentation To Executive Directors  Signing  Effectiveness  Advance Contracting/Retroactive Financing 13 NEGOTIATIONS/BOARD PRESENTATION

 IMPLEMENTATION IS RESPONSIBILITY OF BORROWER  BANK RESPONSIBILITY  Monitor Progress  Advise  Ensure Loan Proceeds Used For Purposes Intended  Ensure Procurement Is Economic And Provides Fair Opportunities 14 IMPLEMENTATION/SUPERVISION

 SUPERVISION METHODOLOGY  Field Visits  Review And Approve  Consultant Selection  Bid Documents  Contract Awards  Changes In Scope/Costs 15 IMPLEMENTATION/SUPERVISION (Contd.)

 PROJECT COMPLETION REPORT PREPARED BY  Separately by Bank Operations Staff and Borrower Staff  Desk And Field Reviews  Re-estimates Cost/Benefits  Includes Borrower’s Comments  Analysis Of Success And Failures  Audit Report By Independent Department Of Bank  Special Reviews By The Bank  Analysis Used For Future Project Design 16 EVALUATION

 BANK ARTICLES  Lend For Specific Projects  Use Funds For Purposes Intended  Economy And Efficiency  COMPETITIVE INTERNATIONAL TRADE  IMPORTANCE OF PROCUREMENT  Critical To Project Implementation  Member Countries Expectation By Way Of Exports  Perception Of Fairness And Transparency 17 WORLD BANK PROCUREMENT POLICY

 Need For Economy And Efficiency  Give All Eligible Bidders Opportunity To Compete  Encourage Development Of Local Industries In Borrowing Country 18 CONSIDERATIONS THAT GUIDE PROCUREMENT POLICIES

 Encouraging the development of domestic contracting and manufacturing industries in the borrowing country  The importance of transparency in the procurement process 19 CONSIDERATIONS THAT GUIDE PROCUREMENT POLICIES (Contd.)

 Describe All Procurement Methods And Their Procedures For All Types Of Projects  For A Specific Project, The Methods And Procedures Of The Guidelines Which Apply Are Those Considered Appropriate For The Project And Were Agreed Upon By Borrower And Bank And Specified In The Financing Agreement 20 GUIDELINES

 Need For Quality Of Required Item  Need For Economy And Efficiency  Need To Give All Eligible Bidders Opportunity To Compete  Encourage Development Of Local Industries In Borrowing Country  Importance Of Transparency 21 GOODS AND WORKS

 Need For High Quality Service  Need For Economy And Efficiency  Need To Give Qualified Consultants From All Eligible Countries Opportunity To Compete  Encourage Development Of National Consultants In Developing Member Countries  Importance Of Transparency 22 CONSULTANCY

Applies To All Contracts Financed Wholly Or In Part By IDA Through Grants/Credits 23 APPLICABILITY

 Definitions  “ corrupt practice ” is the offering, giving, receiving or soliciting, directly or indirectly, of anything of value to influence improperly the actions of another party; 24 FRAUD AND CORRUPTION

 Definitions  “Fraudulent practice” is any act or omission, including a misrepresentation, that knowingly or recklessly misleads, or attempts to mislead, a party to obtain a financial or other benefit or to avoid an obligation 25 FRAUD AND CORRUPTION (Contd.)

 Definitions  “Collusive practice” is an arrangement between two or more parties designed to achieve an improper purpose, including to influence improperly the actions of another party 26 FRAUD AND CORRUPTION (CONTD.)

 Definitions  “Coercive practice" is impairing or harming, or threatening to impair or harm, directly or indirectly, any party or the property of the party to influence improperly the actions of a party 27 FRAUD AND CORRUPTION (Contd.)

 Definitions (Contd.)  “Obstructive practice” is  (a) deliberately destroying, falsifying, altering or concealing of evidence material to the investigation or making false statements to investigators in order to materially impede a Bank investigation into allegations of a corrupt, fraudulent, 28 FRAUD AND CORRUPTION (Contd.)

 Definitions (Contd.) coercive or collusive practice; and/or threatening, harassing or intimidating any party to prevent it from disclosing its knowledge of matters relevant to the investigation or from pursuing the investigation, or 29 FRAUD AND CORRUPTION (Contd.)

 Definitions (Contd.)  “Obstructive practice” is:  (b) acts intended to materially impede the exercise of the Bank’s inspection and audit rights 30 FRAUD AND CORRUPTION (Contd.)

CORRUPT AND FRAUDULENT PRACTICES ARE UNACCEPTABLE  SANCTIONS BY BANK: 1. Will Reject Proposal For Award 2Cancel The Portion Of The Loan 31 FRAUD AND CORRUPTION (Contd.)

3 Declare Firm Ineligible For A Limited Period Or Indefinitely 4Bank 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 32 FRAUD AND CORRUPTION (Contd.)

 Sanctions (Contd.) Legal proceedings (ACC Act, Amended 2008) Disciplinary measures against staff 33 FRAUD AND CORRUPTION (Contd.)

The World Bank Guidelines for Procurement defines Misprocurement as: “…goods and works which have not been procured in accordance with the agreed procedures in the Loan Agreement …” 34 MISPROCUREMENT

WHEN  Any Step/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 35 MISPROCUREMENT (Contd.)

RESULT:  Contract Not Financed  Amount Cancelled From Grant/Credit  For Repeated Offences Even Suspension Of Grant/Credit  Legal proceedings  Disciplinary action against staff 36 MISPROCUREMENT (Contd.)

 SUPERVISES THE PROCESS  ASSISTS BORROWER IN PREPARATION OF PROJECTS  REVIEWS:  Procurement Plan  Advertisement Notice  Bidding Documents [Goods/Works] And Rfp [Consultants]  Bid And Proposal Evaluation Reports – Proposed Contract Awards 37 THE BANK’S ROLE

 Draft Contracts  Contract Amendments  Performance On Contracts  Other Procurement Matters To Ensure Compliance With Credit Agreement -Contracts After Award In Post Reviews 38 THE BANK’S ROLE (Contd.)

 Verifies Withdrawal Applications Prior To Disbursements  Monitors Procurement Through Forms 384  Addresses Complaints From Firms On Procurement Matters 39 THE BANK’S ROLE (Contd.)

 Contracting Parties Are - Borrower/Implementing Agency - Contractors/Suppliers/Consultants and Implementing Agency  Bank Is Not A Party To The Contract  Declares Misprocurement 40 THE BANK’S ROLE (Contd.)

 Two Types  Open  The preferred method  Done by public advertising  Gives equal opportunity to all eligible and qualified bidders 41 METHODS OF PROCUREMENT

 Restricted  Direct invitation to a selected shortlist (Individuals or firms )  Must be approved in order to be used  Should be discouraged as much as possible 42 METHODS OF PROCUREMENT (Contd.)

 Goods, Works and Non- consultancies International Competitive Bidding (ICB) National Competitive Bidding (NCB)  Various methods (See Below) Default is QCBS 43 NAMES OF ‘OPEN’ METHODS

 Restricted Bidding (National and International)  Requests for Quotations  Request for Proposals (for consultancy services)  Sole Source Selection  Direct Contracting 44 NAMES OF ‘RESTRICTED’ METHODS

 D etermined by:  Financial thresholds, or  Circumstances  Are defined in the Guidelines  Emergency requirements  Limitations on supply sources  Genuine contract intentions  Failure of a previous procurement method  Complexity and nature of assignment 45 CHOICE OF PROCUREMENT METHOD

 NCB  ICB;  For Consultancy services: QCBS, LCS, FBS, CQS, and QBS, IC would be used 46 PROCUREMENT METHODS

The principle of value for money engulfs every good procurement practice in today’s world. It deals with:  Quality & Reliability  Lifetime value  Efficiency (Time Management)  Transparency  Price 47 VALUE FOR MONEY

The financial value of any procurement actions determines the method to be used. There are different thresholds in various countries. Prior Review: This procurement control is established for high value procurement actions. A clearance (No Objection) is required at each major step. Post Review: Control for middle and low-value procurement where the review takes place after the procurement action 48 THRESHOLDS

 Purpose of a Procurement Plan  To fulfil the need for goods, works and services in a timely manner.  Statutory  Used as a monitoring tool  To procure at a reasonable cost 49 THE PROCUREMENT PLAN

 Content of a Procurement Plan  Contract description (contract package)  Estimated cost (unit and total)  Procurement method for the contract  Activities and dates (Lead Times)  The plan should have planned and actual columns to facilitate monitoring and must be revised periodically 50 THE PROCUREMENT PLAN (Contd.)

 Steps to Follow:  Needs assessment to determine the goods, works and services required for the period of time under consideration;  Determination of Lead Time  Key Tasks and Activities 1.Development of Specifications and Preparation of Drawings 2.Preparation of the Bidding Documents 51 THE PROCUREMENT PLAN (Contd.)

 Steps to Follow: 3. Advertisement/Receipt of bids 4. Bid Opening/Evaluation 5. Preparation and Signing of Contract 6. Mobilisation/Advance Payment/Notification Period 7. Reviews within the process 8. Time supplier/contractor requires to supply/construct 52 THE PROCUREMENT PLAN (Contd.)

 Specification communicate to prospective bidders the exact scope and technical requirements for products to be supplied or materials to de used for civil works. They should include details of all the required attributes, variables and parameters of a product or materials and appropriate information on the intended use and performance required, The ultimate objective is to ensure that end – user needs are fully met and that value for money is achieved. 53 TECHNICAL SPECIFICATIONS

 Generally specifications may define:  The function or duty to be performed by the product;  The performance required of an item  The technical and physical characteristics of a piece of equipment in terms of physical dimensions, power input and output, capacity, materials to be used in manufacture etc. 54 TECHNICAL SPECIFICATIONS (Contd.)

55  Sufficiently generic enough to elicit responsive bids  Enable participation by any qualified bidder, without technical prejudice  Display technical criteria for evaluation of bids  must be drafted to permit the widest possible competition  provide a clear statement of the required standards of workmanship, materials, and performance of the goods and services to be procured

TECHNICAL SPECIFICATIONS (Contd.) 56  For GOODS, it includes:  Physical/chemical properties  Performance requirements  Reference to design drawings  Locally applicable standards and regulations

TECHNICAL SPECIFICATIONS (Contd.) 57  For Works, it make reference to:  Working Drawings  Bill of quantities  Industry standards  Locally applicable codes

 It is the submission of the required information, documentation and commitment as prescribed in the solicitation document (Bidding Document, RFQ, RFP, etc.)  It would involve compliance with national, international and partner guidelines, regulations and laws. 58 RESPONSIVENESS

THANK YOU 59 COURTESY