World Bank’s new World Bank’s new methodologymethodology

In Country procurement In Country procurement assessment assessment World Bank’s Methodology

for Procurement laws: back to country systems?

BackgroundBackground

Projects financed and implemented ($ 22 Projects financed and implemented ($ 22 billions each year)billions each year)

following the current standing policies of following the current standing policies of the Bankthe Bank• Principles of international best practice for Principles of international best practice for

procurement, bidding documents and selection procurement, bidding documents and selection procedures (procedures (international competitive biddinginternational competitive bidding). ).

• GuidelinesGuidelines : Procurement under IBRD Loans : Procurement under IBRD Loans and IDA Creditsand IDA Credits and and Selection and Employment Selection and Employment of Consultants by World Bank Borrowers (2004)of Consultants by World Bank Borrowers (2004)

Contract financed by loan or Contract financed by loan or creditcredit

Borrowing State

Company World Bank

contract loan agreement

The Paris DeclarationThe Paris Declaration

OECD / World BankOECD / World Bank March 2005, March 2005, measure success, or failure, in measure success, or failure, in

making aid more effective to making aid more effective to eradicate poverty. eradicate poverty. • Development Assistance Committee Development Assistance Committee

(DAC) Working Party on Aid (DAC) Working Party on Aid EffectivenessEffectiveness

In 2005, on average, 39-40% of aid In 2005, on average, 39-40% of aid flows used country public financial flows used country public financial management and procurement management and procurement systems.systems.

Indicator 2(b) Procurement – One-third of partner countries move up on the four-point scale used to assess performance in reforming.

2007 : failure in the Indicator 2b

2006 : OECD/DAC benchmarking 2006 : OECD/DAC benchmarking tool to assess the procurement tool to assess the procurement

systemssystems

to benchmark the strengths and weaknesses of the country's procurement system.

54 indicators54 indicators

Procurement system divided into four Procurement system divided into four pillars: pillars:

legal framework, institutional legal framework, institutional framework and management framework and management capacity, operations and market capacity, operations and market practices, and integrity and practices, and integrity and transparency. transparency. • The four pillars are defined further by The four pillars are defined further by

twelve indicators, each of which has twelve indicators, each of which has sub-indicators totaling to fifty-four sub-indicators totaling to fifty-four

Paris Declaration Report (2007) on Paris Declaration Report (2007) on Procurement systems:Procurement systems:

““Country representatives commonly Country representatives commonly feel that buy-in from donors has feel that buy-in from donors has been inadequate, while donors report been inadequate, while donors report that legal rules may have improved, that legal rules may have improved, but systems are still weak”. but systems are still weak”.

A new commitmentA new commitment

The The "Status Report and "Status Report and Supplemental Note on Use of Country Supplemental Note on Use of Country Systems in Bank-Supported Systems in Bank-Supported Operations (R2007-0079)"Operations (R2007-0079)" commitment to define a detailed commitment to define a detailed methodology for handling methodology for handling procurement under the country procurement under the country pilots. pilots.

A new methodologyA new methodology

Since 2007, the World Bank is Since 2007, the World Bank is preparing a draft Detailed preparing a draft Detailed methodology for Use of Country methodology for Use of Country Procurement SystemsProcurement Systems

• Proposing to pilote the use of country Proposing to pilote the use of country procurement systems in selected procurement systems in selected countries and in selected projects.countries and in selected projects.

Use of country systems: a new Use of country systems: a new trend?trend?

February 2005: Board discussion on February 2005: Board discussion on Expanding the Use of Country Expanding the Use of Country Systems in Bank-Supported Systems in Bank-Supported OperationsOperations• country systems used for environmental country systems used for environmental

and social safeguard issues in projects and social safeguard issues in projects • Now expanded to include procurement Now expanded to include procurement

and financial managementand financial management

STRENGTHENING AND USINGSTRENGTHENING AND USINGCOUNTRY SYSTEMSCOUNTRY SYSTEMS

Enhancing control and oversight of Enhancing control and oversight of procurement in projects financed by procurement in projects financed by the WBthe WB

scaling up development impact, scaling up development impact, increasing country ownership, increasing country ownership, facilitating harmonization, facilitating harmonization, meeting commitments under the meeting commitments under the

Paris DeclarationParis Declaration

Goal?Goal?

• ““Country procurement system” = each Country procurement system” = each country context?country context?

• Or "equivalent" to the principles and Or "equivalent" to the principles and policies defined by the Bank under its policies defined by the Bank under its current Guidelines?current Guidelines?

““Equivalency test”Equivalency test”