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.