The Implementing Agencies of borrowing countries can use a variety of procurement methods on World Bank-financed projects. The method selected depends on a number of factors including the type of good or service being procured, the value of the good or service being procured, the potential interest of foreign bidders and even the cost of the procurement process itself.
There are two separate guidelines that describe the various procurement methods. The “Red” Guidelines, “Procurement under IBRD Loans and IDA Credits” cover goods, equipment, civil works and non-consulting services (services with a physical output would fall under this category – for example: digital mapping). The “Green” Guidelines, “Selection and Employment of Consultants by World Bank Borrowers” cover consulting services. Both guidelines address such issues as advertising, bid and proposal submission, evaluation, pricing, currency, terms of payment, and local content. Companies should read these guidelines carefully in order to avoid bidding mistakes, to learn how procurement is conducted correctly, to understand how the guidelines will affect the competitiveness of their bids or proposals, and to learn how to address queries or complaints during the bidding process.
The overall objective of the guidelines is to allow borrowing countries to buy high quality goods and services as economically as possible. In the World Bank’s experience, this objective is best achieved through transparent, formal competitive bidding. For the procurement of equipment and civil works, International Competitive Bidding (ICB) is the procurement method the World Bank encourages its borrowers to use in the majority of cases. Under ICB, cost is the primary factor in determining a winning bid. Other methods for procuring goods and civil works include National Competitive Bidding, and International Shopping.
For the selection of consultants, Quality- and Cost-Based Selection (QCBS) is the method the World Bank encourages its borrowers to use in the majority of cases. Under QCBS, proposals are evaluated based on both their technical merit and price. Other methods for selecting consultants include Quality-Based Selection (QBS) and Least-Cost Selection.
Standard Bidding Documents (SBDs) and Standard Request for Proposals (SRFPs) are "templates" that borrowers use to procure goods, works and services for competitively tendered Bank-financed contracts. In contrast to the procurement guidelines, SBDs set out provisions for a particular bid. Companies with little bidding or proposal writing experience on World Bank-financed projects should consider reviewing these documents.
For a complete list of the Bank’s standard bidding and proposal documents, click here.
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