The World Bank is set to implement a series of new measures aimed at improving procurement outcomes under Investment Project Financing starting March 1, 2025. This initiative aligns with the bank's ongoing efforts to enhance operational procurement as part of its mission to become a more effective institution.
According to the World Bank, "Effective procurement enables our clients to achieve value for money, transparency, efficiency, and fairness in Bank-financed operations." The organization believes that by establishing quality standards in international procurement, it can better respond to client needs and promote market innovation.
The new measures are based on feedback from clients and the business community. Key changes include a requirement for a minimum quality weighting of 50 percent for most internationally competitive procurements. Additionally, contracts estimated at over $10 million will incorporate early market engagement as an integral part of the process. This aims to attract high-caliber bidders and optimize procurement strategies.
Furthermore, the World Bank plans to collaborate with clients to combine smaller contracts into larger packages and offer direct payment options. These steps are intended to mitigate supplier payment risks.
Training programs will be provided for both clients and World Bank staff on these new approaches. The bank also intends to increase support, oversight, and scrutiny concerning project procurement strategies, market engagement methods, rated criteria, quality weightings, and related actions.
To facilitate this transition, several documents have been published: "Updated Procurement Regulations for Investment Project Financing," "Guidance on Evaluating Bids and Proposals using Rated Criteria," and an "Early Market Engagement Fact Sheet."
"We look forward to working together and remain committed to modern, fair, and transparent procurement processes that lead to better development outcomes for people in our client countries," stated the World Bank.