The World Bank is updating its procurement requirements to address job challenges in developing countries. Companies working on World Bank-funded projects will now need to include local labor participation in civil works contracts.
From September 1, 2025, companies bidding on international civil works contracts must ensure that 30% of labor costs are local. This change aims to boost domestic job creation and skills development. The focus is on public infrastructure projects like transportation and energy infrastructure.
Employing local labor contributes to income generation within communities, allowing people to support their families, build knowledge and skills, and reinvest in the local economy. With an estimated 1.2 billion young people entering the workforce in emerging economies over the next decade, this initiative seeks to deepen the impact of World Bank financing.
“This new requirement underpins our commitment to job creation,” said Gallina A. Vincelette, Vice President for Operations Policy and Country Services at the World Bank. “By prioritizing the use of local labor in World Bank-funded projects, we not only create immediate employment opportunities for people in our client countries but also invest in the long-term potential of local communities. This approach helps build a skilled and better-equipped workforce and strengthens local economies.”
This update builds on measures introduced in March 2025 aimed at improving procurement outcomes by attracting highly qualified bidders and innovative solutions in Bank-financed investment projects. These measures emphasize quality attributes such as life-cycle costs, innovation, sustainability, and local job creation during bid evaluations.
For more information:
Contact: Uwimana Basaninyenzi at +1 202 744 3489 or ubasaninyenzi@worldbankgroup.org
Website: www.worldbank.org/procurement
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