Procurement of Goods, Works & Services

The Bank's interest in procurement stems from the provisions of its Articles of Agreement which stipulate that the funds it lends are used only for the purpose for which the loan was granted, with due attention to economy and efficiency. The Bank has established rules for the use of its loans, and for supervising the execution of the projects it helps to finance--including procurement of the necessary goods and works for them.

The World Bank has five basic concerns that govern its procurement policies:

• to ensure that the goods and services needed to carry out the project are procured with due attention to economy and efficiency;
• to ensure that the loan is used to buy only those goods and services needed to carry out the project;
• to give all qualified bidders from the Bank's member countries an equal opportunity to compete for Bank-financed contracts;
• to encourage development of local contractors and manufacturers in borrowing countries; and
• to ensure that the procurement process is transparent.

These Guidelines (dated October 15, 2006) are designed to prevent and combat fraud and corruption that may occur in connection with the use of proceeds of financing from the International Bank for Reconstruction and Development (IBRD) or the International Development Association (IDA) during the preparation and/or implementation of IBRD/IDA-financed investment projects. They set out the general principles, requirements and sanctions applicable to persons and entities which receive, are responsible for the deposit or transfer of, or take or influence decisions regarding the use of, such proceeds.

Download Guidelines (PDF 30 kb)

The Guidelines will be part of all loans where Project Concept Notes are issued on or after Oct. 15, 2006.