Rules

Section I of the Procurement Guidelines provides that the Guidelines apply to all contracts for goods, works and services financed in whole or in part from the Bank's loans, credits and grants which would thereby cover both IBRD and IDA. Similar provisions apply for the selection of Consultants under the Consultants Guidelines.

This requirement is made applicable in each operation through the loan, credit or grant agreement thus making their use a legal obligation on the part of the Borrower. It applies as well to counterpart funds that are also used to finance contracts with loan/credit proceeds. In addition, parts of Bank-financed projects that are co-financed by other donors are also subject to Bank rules. This could also be the case under parallel financing when co-financiers agree to using Bank guidelines (leverage effect).

To ensure that these legal provisions are observed during project implementation, Bank staff review and provide a "no objection" before the Borrower implements certain procurement decisions (for all International Competitive Bidding (ICB) and other high-value, high-risk, and otherwise complex contracts). Also, as part of project supervision, Bank staff will review contracts that have not been subject to prior review so as to ensure that the Guidelines were applied as required. Where this is found not to be the case, the Bank applies various remedies including mis-procurement (which in most instances requires cancellation and refund of the funds in question).

Advertising requirements vary depending on whether Procurement is subject to International Competitive Bidding (ICB) or National Competitive Bidding (NCB).