World Bank –

Procurement Policy
Framework
DR. MOHSIN ALI SOOMRO

Complex Engineering and

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Resource Person’s Introduction
Current affiliation
•Assistant Professor, Quaid-e-Awam University of Engineering Science and Technology (QUEST)
Nawabshah
•Affiliated Researcher at Tongji SEM Complex Engineering and Management Institute, Shanghai.
Past affiliations
•UNICEF
•SSGC
•Osmani and Co.

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Resource Person’s Introduction
Education
Postdoctoral Fellowship, Tongji University School of Economics and Management
PhD, Hong Kong University of Science and Technology (HKUST), Hong Kong
Masters, University of New South Wales (UNSW), Sydney Australia
B.E., QUEST, Nawabshah

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World Bank Group
WORK WITH GOVERNMENTS WORK WITH PRIVATE SECTOR TRIBUNAL

International
International Bank International International Multilateral
Centre for
for Reconstruction Development Finance Investment
Settlement of
and Development Association Corporation Guarantee Agency
Investment
1 2 3 4 Disputes
IBRD IDA IFC MIGA 5
ICSID
Financing for Financing for low- Investment and Political risk
middle-income income developing advisory services to insurance and credit
International
developing countries encourage private- enhancement
arbitration of
countries sector development guarantees
investment disputes

Together IBRD and IDA are

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World Bank – Facts
World Bank, in full World Bank Group, is an international organization affiliated with the United
Nations (UN).
World Bank is designed to finance projects that enhance the economic development of member
states.
It is headquartered in Washington, D.C.,
The bank is the largest source of financial assistance to developing countries.
It also provides technical assistance and policy advice and supervises—on behalf of international
creditors—the implementation of free-market reforms.
Together with the International Monetary Fund (IMF) and the World Trade Organization, it plays
a central role in overseeing economic policy and reforming public institutions in developing
countries and defining the global macroeconomic agenda.

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Areas of spend worldwide
(large contracts awarded FY20)
Water/Sanit/Waste
Transportation
3% 3%1% Energy & Extractives
4% 21%
4% Public Administration
Agriculture
8%
Social Protection
Health
10% Industry &
18%
Trade/Services
Info. & Communication
12%
Education
17%
Financial Sector

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2020 Global commitments by region
12
%
6%

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36% %

13% 12
%

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FY20 Top 10 Procuring Borrowers
CONTRACT VALUE
RANK COUNTRY % OF TOTAL VALUE
(USD)
1 India 1,299,511,389 16.31%
2 Pakistan 583,498,177 7.32%
3 Bangladesh 387,220,650 4.86%
4 Nigeria 368,325,526 4.62%
5 China 362,456,094 4.55%
6 Ukraine 290,563,851 3.65%
7 Democratic Republic of
Congo 274,612,742 3.45%
8 Uzbekistan 268,368,177 3.37%
9 Myanmar 196,681,358 2.47%
10 Iraq 186,554,906 2.34%
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FY20 Top 10 Supplier Countries
CONTRACT VALUE % OF TOTAL
RANK COUNTRY
(USD) VALUE
1 China 1,901,493,257 23.86%
2 India 1,342,085,993 16.84%
3 Turkey 463,286,637 5.81%
4 Nigeria 226,799,769 2.85%
5 France 189,076,334 2.37%
6 Japan 120,599,276 1.51%
7 Vietnam 113,310,505 1.42%
8 Egypt 104,558,376 1.31%
9 Germany 104,462,213 1.31%
10 Senegal 98,363,709 1.23%
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World Bank Projects in Pakistan
No. of Active Projects in Pakistan 75

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Procurement Vision & Core Principles
VISION
“Procurement in
Investment Project
Financing supports
Borrowers to
achieve value for
money with
integrity in
delivering
sustainable
development”

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Procurement Vision & Core Principles
Value for Money (VfM)
The principle of VfM means the effective, efficient, and economic use of resources, which
requires an evaluation of relevant costs and benefits, along with an assessment of risks, and
non-price attributes and/or life cycle costs, as appropriate. Price alone may not necessarily
represent VfM.
Economy
The principle of economy takes into consideration factors such as sustainability, quality, non-
price attributes and/or life cycle cost as appropriate, that support VfM. It permits integrating
into the procurement process economic, environmental, and social considerations that the
Bank has agreed with the Borrower.

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Procurement Vision & Core Principles
Integrity
The principle of integrity refers to the use of funds, resources, assets, and
authority according to the intended purposes and in a manner, that is well informed,
aligned with the public interest, and aligned with broader principles of good
governance.
The Bank requires that all parties involved in the procurement process,
and their personnel, observe the highest standard of ethics during the procurement
process of Bank-financed contracts, and refrain from fraud and corruption (as defined
in the Bank’s Anti-Corruption Guidelines).

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Procurement Vision & Core Principles
Fit-for-purpose
The principle of fit for purpose means tailoring the procurement approach and methodology to
meet the project development objectives and outcomes, taking into account the context and
the risk, value, and complexity of the procurement.
Efficiency
The principle of efficiency requires that procurement processes be proportional to the value and
risks of the underlying project activities. Procurement arrangements are generally time-sensitive
and strive to avoid delays.

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Procurement Vision & Core Principles
Transparency
The principle of transparency requires that the Borrower and the Bank enable appropriate
reviews of procurement activities, supported by appropriate documentation and disclosure.
Transparency requires:
a. that relevant procurement information be made publicly available to all interested parties,
consistently and in a timely manner, through readily accessible and widely available sources at
reasonable or no cost;
b. there is appropriate reporting of procurement activities;
c. confidentiality provisions in contracts are used only where justified

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Procurement Vision & Core Principles
Fairness
The principle of fairness refers to:
a. equal opportunity and treatment for Bidders/Proposers/Consultants;
b. equitable distribution of rights and obligations between Borrowers and suppliers, contractors
and Bidders/Proposers/Consultants;
c. credible mechanisms for addressing procurement-related complaints and providing recourse.

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Procurement rules
Guidelines (pre-July 2016)
IPF projects which were approved prior to July 1, 2016, are usually governed by the Bank’s
Procurement Guidelines.
Procurement Regulations (post-July 2016)
IPF Projects which were approved after July 1, 2016 are governed principally by the
Procurement Regulations.
The rules (either Guidelines or Regulations) that apply to a particular project are specified in the
financing agreement.
Make sure to follow the stipulated rules including the specific edition, or the Bank may reject to
finance the project.

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 Example of suspended project
The World Bank, in 2013, suspended the Integrated Water Resources Management and
Development project for Balochistan over lack of progress in management and funds
disbursement. – Which was later reinstated after dialogue

Balochistan Integrated Water Resources Management and

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Roles and responsibilities - Borrower
The Borrower is responsible for carrying out procurement activities financed by the Bank in
accordance with the financing agreement made between the Bank and the Borrower.
In particular, the Borrower must only use funds for the purpose for which they were granted.
Other responsibilities include:
1. planning the procurement;
2. preparing procurement strategies;
3. seeking offers from the market;
4. evaluating offers and determining the Most Advantageous Bid/Proposal; and
5. awarding, signing and managing contracts

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Roles and responsibilities – World
Bank
To ensure that funds are used only for the purpose for which they were granted, the Bank
provides Borrowers with implementation support and oversight.
Implementation support includes providing training and advice to the Borrower.
Oversight includes conducting reviews of the Borrower’s procurement activities. A review can be
either:
1. prior review: before the procurement activity takes place; or
2. post reviews: after the procurement activity has been completed.
The purpose of the Bank’s review is to determine whether, or not the Borrower’s procurement
activities are/were in accordance with the financing agreement.

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Roles and responsibilities – World
Bank
For procurements subject to prior review, the Bank checks:
1. the draft procurement notices before they are published;
2. the Borrower’s draft procurement documents before they are issued;
3. the results of the evaluation of Bids/Proposals before they are announced;
4. the Borrower’s draft responses to procurement-related complaints before they are issued;
and
5. the draft contracts before they are signed by the Borrower.

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Roles and responsibilities – bidders
(for services and suppliers)
In order to participate in a procurement opportunity, prospective Bidders/Proposers, and if
appropriate the goods that they supply, must be “eligible”. There are strict rules that govern
eligibility.
The general conditions that apply to eligibility are contained in the Procurement
Regulations (see Procurement Regulations 3.21 to 3.23).
1. the Bidder’s/Proposer’s capability and resources to successfully perform the contract;
2. a conflict of interest

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Exceptions to the general rule 1
Country
A Borrower can deny a Bidder/Proposer the right to participate, or to be awarded a contract if:
a. the Bidder/Proposer is from a country, or the Goods are manufactured in a country,
i. the Borrower’s law or regulations prohibit commercial relations with that country (provided
that the Bank is satisfied that the exclusion does not preclude effective competition);
ii. if the procurement is to be implemented across jurisdictional boundaries (i.e. the
procurement involves more than one country) exclusion of a Bidder/Proposer on this basis by
one country, may apply if the Bank, and all the other countries involved in the procurement,
agree;
iii. in complying with a decision of the United Nations Security Council, the Borrower’s laws
prohibit the import of Goods from that country, or prohibits payments to a country, or a person
or entity in that country.

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Exceptions to the general rule 1
State-owned Enterprise State-owned Enterprise or institution (SOEs)
SOEs outside the Borrower’s country are eligible to participate.
SOEs of the Borrower’s country are not normally eligible to participate.
However, they may be eligible if they can establish that they:
a. are legally and financially autonomous;
b. operate under commercial law;
c. are not under supervision by the agency contracting them
However, when the Goods, Works, or Services provided by SOEs (including state owned
universities, research centers, or institutions) are of a unique and exceptional

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Exceptions to the general rule 1
A firm or individual is not eligible where it has been sanctioned and declared ineligible under the
Bank’s Anti-Corruption Guidelines
The Borrower may request that the Bank agree to exclude a firm or individual that is under a
legal sanction of debarment in its country.
The Bank must be satisfied that the debarment relates to fraud or corruption, and that the
judicial proceeding provided adequate due process.

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Integrity - Application
In line with the core procurement principle (integrity), the Bank requires that all parties involved
in the procurement process, and their personnel, observe the highest standard of ethics during
the procurement process and refrain from fraud or corruption.
The Bank will reject a Borrower’s proposal for award if it determines that the firm or individual
recommended (including any of its staff, or its agents, suppliers or employees), has, directly or
indirectly, engaged in fraud or corruption in competing for the contract in question.

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Integrity - Audit
Bank’s audit and inspection rights The Bank requires that Borrowers include a clause in the
procurement document requiring Bidders/Proposers, and Contractors/Consultants (including
their sub-contractors, sub-consultants, agents, personnel) permit the Bank to inspect and audit
all accounts, records and other documents relating to the procurement process, selection
and/or contract execution.
The Bank can appoint auditors to act on its behalf.

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Integrity – Sanctions & remedies
The Bank can exercise various sanctions and remedies where fraud and corruption have been
detected. These sanctions and remedies found in the:
1. legal remedies in the financing agreement for each project;
2. legal remedies in the contracts between the Borrower and the Contractor / Consultant;
The Bank can sanction a firm or individual which has been found (by the Bank) to have engaged
in fraud or corruption in relation to a Bank financed project.
In relation to a Borrower, the Bank may declare a misprocurement, if the Bank determines at
any time that a representative of the Borrower has engaged in fraud or corruption during the
procurement process, selection and/or execution of the contract in question

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Procurement process overview
The procurement process is defined in the Procurement Regulations as:
“the process that starts with the identification of need and continues through planning,
preparation of specifications/requirements, budget considerations, selection, contract award
and contract management…
While each procurement is unique, they broadly follow a similar process. This can be split into
seven key stages. Figure III is a simplified representation of the procurement process.

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Develop strategy - Project
Procurement Strategy for
Development (PPSD)
The PPSD analyzes and summarizes the various findings which have led to the Borrower’s
procurement approach.
The Borrower has some flexibility in designing the procurement approach.
The design should reflect the optimal way to conduct the procurement.
Designing the procurement optimally increases the likelihood of the best suppliers submitting
offers and increases chances of achieving VfM and delivering the right result(s).

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Procurement approach
From analyzing this information, the Borrower designs an appropriate procurement approach.
This will detail:
i. the type of requirements/specifications. These may be conformance or performance based.
Conformance requirements are detailed specifications of the Borrower’s precise needs and the
methodology for achieving them.
Performance requirements outline the desired outcomes and allow the market to propose
solutions to meet these needs, facilitating more market innovation;
ii. the type of contract
iii. how the Borrower will approach the market for each procurement to obtain offers from the
right suppliers including whether it will include national or international competition;

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Procurement approach
iv. the selection method that the Borrower will adopt to request offers from suppliers;
v. the evaluation and qualification criteria that will be used to compare the offers received and
determine the Most Advantageous Bid/Proposal; and
vi. a contract management plan outlining how the contract will be monitored to ensure that
each party meets their obligations.

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Competitive versus non-competitive
The first step in determining the approach to the market is deciding whether to follow a competitive
or non-competitive approach.
i. non-competitive approach: (direct selection)
The Borrower approaches and negotiates with only one firm. Direct selection may be appropriate if
there is genuinely only one suitable firm, or there is justification to use a preferred firm. For
circumstances when a non-competitive approach may be used see Procurement Regulations
paragraphs 6.8 to 6.10).
ii. competitive approach: Multiple firms are invited to participate in the procurement and submit
offers. An open competitive approach to the market is the Bank’s preferred approach as it provides
opportunities for all eligible prospective firms to prepare and submit offers to compete for the work.
Under an open competitive approach, the Borrower may approach the national or international
market.

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These other market approach options
i. Competitive Dialogue
ii. Best and Final Offer (BAFO)
It refers to a multi-stage procurement process .
After the first stage, which determines which Bids/Proposals meet the Borrower’s requirements,
the next stage involves providing those Bidder/Proposers an opportunity to submit their Best
and Final Offer.
BAFO is appropriate when the procurement process may benefit from Bidders/Proposers having
a final opportunity to improve their offers, including by reducing prices, clarifying or modifying
their offers, or providing additional information. I

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Plan the procurement
The Borrower is also required to prepare a Procurement Plan (PP).
The PP is informed by the PPSD. The PP is a detailed action plan which describes the procurement
activities and sets out the schedule of dates.
The PP includes:
a. a brief description of what is to be procured;
b. the cost estimate for the procurement;
c. the selection method to be applied;
d. the time schedules for the key steps of the procurement process from initiation of the
procurement to completion of contract implementation; and
e. the type of Bank review that will apply.

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3. Invite offers
For procurements subject to open international competition, the invitation is published:
a. in a local newspaper of wide circulation and/or a free access website; and
b. on the UN Development Business website; and
c. on the Bank’s external website.
The Borrower provides to interested bidders/proposers a procurement document that
includes:
a. the instructions to Bidders/Proposers on how to prepare and submit their offers
including explaining how the best offer will be determined;
b. a description of the Borrower’s requirements; and
c. standard forms to be completed by the Bidder/Proposer in preparing their offers;
d. a copy of the draft contract

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Receive and open offers
Borrowers should allow the market sufficient time to review the requirements and prepare and
submit their offers.
For procurements involving international competition, this is usually at least 30 business days
from the date of publication of the opportunity.
During this period, Bidders/Proposers may raise queries and request clarifications on the
procurement documents or the Borrower’s requirements.
Borrowers should address such queries in a timely manner and share the responses with all
potential Bidders/Proposers.
(and other common instructions)

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Evaluate offers
Evaluation and qualification criteria are used by the Borrower to compare offers and determine
the best Bid/Proposal.
The best Bid/Proposal is called the Most Advantageous Bid/Proposal.
Evaluation criteria, and the methodology as to how they will be applied, must be established
during the early stages of the procurement.
They must be published in the procurement documents issued to the Bidders/Proposers.
This supports transparency and integrity in the procurement process.
It is essential that potential Bidders/Proposers understand the criteria by which their
Bid/Proposal will be judged, and what criteria are the least to most important to the Borrower.

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Evaluate offers
Monetary quantifiable
criteria Monetary quantifiable criteria are used when the Borrower wishes to award the contract
to the lowest priced conforming Bid.
This type of criteria is best suited to procurements that use conformance specifications (i.e.
where the Borrower specifies the outputs and the method of delivery).
Often RFB processes use this type of criteria.
Rated criteria Rated
criteria are often used when the Borrower wishes to award the contract to the Proposal which
offers the best VfM. The lowest price alone may not be the best VfM.
Rather VfM is a combination of price (including life-cycle costs) and quality, non-price attributes,
management of risks and costs/benefits.

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Final tasks
 Once Borrower decides who to award contract to it must inform other
bidders/proposers
 Send NIA to each bidder/proposer that submitted bid/proposal (but not to those who have
previously been told they were not successful)

 Sending NIA starts the standstill period

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 Bidder/proposer submits request for a debrief
 Borrower provides debrief within 5 business days
 Standstill period expires at the end of the 10th day

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 Bidder/proposer submits request for a debrief
 Borrower unable to provide debrief within 5 business days
 Standstill period extended to 5 business days after the debrief takes
place

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THE
END

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