The World Bank's Procurement Framework 2016 was approved by World Bank Board on July 21, 2015 to modernize the procurement policy and maximize the strategic role of procurement in achieving key development effectiveness goals.
Mandatory for all lending operations after July 1, 2016, the new Framework emphasizes flexibility, quality, and greater value for public spending, while enabling adaptation to country contexts. It recognizes that countries are looking to be more efficient in their public spending so that they can invest more in basic public services such as education, health and infrastructure services and enrich development outcomes.
The reform is the result of extensive consultations in almost 100 countries and allows greater flexibility for each operation to identify the right procurement approach; an extended range of procurement practices and options; more tailored, context-specific approaches for fragile and conflict-afflicted states; and more hands-on support from Bank staff to help clients in capacity-building and institution-strengthening.
Strategic Role of ProcurementThe World Bank's Procurement Framework 2016 maximizes the strategic role of procurement in achieving development effectiveness goals by:
- Recognizing that countries are looking to be more efficient in their public spending so that they can invest more in basic public services such as education, health and infrastructure to enrich development outcomes.
- Modernizing procurement to emphasize flexibility (i.e., fit-for-purpose), quality, and greater value for public spending, while enabling adaptation to country contexts.
- Promoting strengthened national procurement systems that are empowered to support sustainable development objectives.
- Increasing transparency in public spending by taking advantage of ICT tools in public procurement.
For World Bank Clients:The World Bank's Procurement Framework 2016 provides benefits to clients, including:
- Shortening the time for decision-making by streamlining Bank procurement projects through reduced reliance on prior review and no-objection procedures.
- Providing an expanded range of procurement tools to enable a better fit for projects addressing client needs, country contexts, and country development objectives.
- Offering support to countries in capacity building.
- Enabling use of alternative procurement arrangements including those of co-financiers and of country agencies as appropriate.
- Facilitating systematic tracking of public procurement.
- Helping to build sustainable client country systems with sustainable procurement practices to ensure social, environmental, economic elements in procurement.
For private sector/MDBs/CSOs/NGOs:
- The World Bank Procurement Framework 2016 promotes local industry development and enhances engagement and interaction with key stakeholders, ensuring inclusive, accountable, and coordinated procurement processes.
- The flexible framework will allow leveraging of other multilateral development bank's procurement systems.
Procurement in world bank investment project Financing Phase ii: the new procurement framework
This paper presents a modernized Procurement Framework (Framework), with a recommendation for Board approval, following endorsement by the Committee on Development Effectiveness (CODE) and the Audit Committee (AC). The development of this Framework—a once-in-a-generation systematic reform and culture change—has been informed by extensive global consultations with governments, private sector, trade bodies, Civil Society Organizations (CSOs) and Non-Governmental Organizations (NGO’s). Balancing the task of maintaining the Bank’s fiduciary assurance and delivering sustained development outcomes, the Framework reflects the agreed vision: "Procurement in Investment Project Financing supports clients to achieve value for money with integrity in delivering sustainable development."......