Organization
World Bank
Report Year
2014
1st MAR Year
2015
Accepted
Yes
Status
Active
Recommendation

Revise and implement changes in the current Guidelines, including particularly: new procurement modalities, the Consultant hiring guidelines, and areas of the Guidelines and SBD referring to ICT and PPP, taking account of IEG's findings and reflective of prevailing good practice.

Recommenation Adoption
IEG Level of Adoption by Year: mar-rating-popup SNTNTNT Management Adoption by Year: mar-rating-mng-popup SNTNTNT
CComplete
HHigh
SSubstantial
MModerate
NNegligible
NANot Accepted
NRNot Rated
Findings Conclusions

Findings show scope for fundamental review in aspects of the consultant hiring guidelines, where there was evidence of concern in areas including the choice of selection methods and preparation of consultant short lists Bank Guidelines are also limited in terms of their incorporation of new modalities for procurement such as framework agreements, and use of negotiation. As regards ICT procurement, the evaluation notes that the Bank's SBD are not user friendly and are not aligned with industry norms. The Bank offers limited scope for dialog between bidders and procuring agents. The Bank's two-stage bidding procedure provides the opportunity for a dialog to adjust technical requirements and commercial terms in the first stage, during evaluation of non-priced technical proposals, but not in the second stage, during evaluation of price proposals. Moreover, two-stage bidding is not frequently used for procurement of complex ICT systems. As regards PPP procurement, there is a need to further clarify: (i) the scope of the Bank's review of private investor procedures and of standards acceptable to the Bank; (ii) situations where the Bank enters late, and is not involved in the design (including the design of procurement processes) from the beginning; (iii) situations where the procurement arrangements have been put in place by other investors, sometimes with larger financial stakes, where the Bank might be a minority investor; (iv) on-lending arrangements, financing via investment funds, or other situations with numerous small investments under an umbrella arrangement; and (v) unsolicited proposals.

Original Management Response

WB: Agree #4. The Guidelines will be reviewed and updated to reflect new procurement modalities. As part of its proposed new framework for Procurement in World Bank Investment Project Finance, Management envisages that the World Bank Procurement Guidelines would become one of Several different procurement arrangements that could be utilized to support a Bank operation.
Management envisages that the current Guidelines, as they now stand, would be replaced by: (i) a statement of the need to fulfill the core principles, reflected in a new operational policy (OP); (ii) a description of procedures to be followed by staff, reflected in a new statement of Bank procedures (BP); and (iii) a tool box of methods, procedures, processes, standard bidding documents, templates and supporting documentation to serve as guidance to staff and borrowers. These guidance materials would constitute the reference point in terms of the best that the Bank has to offer and would be continuously updated.
This approach would empower the Procurement team, to exercise discretion to identify the most proportional, fit for purpose procurement arrangements, reflective of prevailing good practice and our procurement principles to support a Bank project. The final decision on the appropriateness of any alternate procurement arrangements to support individual operations will rest with the Bank (Procurement) as part of its obligation to provide fiduciary assurance.
SBDs will also be reviewed and changes will be identified to take account of IEGs findings.

Action Plans
Action 1
Action 1 Number:
0326-01
Action 1 Title:
Action 4: Review and update, in selective areas, the current Bank Guidelines and reflect them in any new Procurement Policy an
Action 1 Plan:

Action 4: Review and update, in selective areas, the current Bank Guidelines and reflect them in any new Procurement Policy and Instructions/ Guidance for Bank Staff and Borrowers that the Bank may prepare. The new Guidelines will be implemented as and when approved by the Board.

Indicator: New draft Policy and Instructions/Guidance.

Baseline: Current Guidelines
Target: Updated and modernized Guidelines developed and approved by the Board.

Timeline: FY15

Action 2
Action 3
Action 4
Action 5
Action 6
Action 7
Action 8
2018
IEG Update:
No Updates
Management Update:
No Updates
2017
IEG Update:
No Updates
Management Update:
No Updates
2016
IEG Update:
No Updates
Management Update:
No Updates
2015
IEG Update:

IEG is pleased with the progress described in terms of the incorporation of procurement modalities on PPP, competitive dialogue (especially for IECT procurement), etc. IEG requested further information on the PPSD (Project Performance Strategy for Development) and evidence of the revised Standard Bidding documents, and has been informed as follows:

OPCS is finalizing several documents including specific guidance notes on PPSD. These document are not available yet for circulation.

In addition, OPCS and the GGP-PIO are designing training events for procurement and non-procurement staff, including PPDS. These training will start next month.

'sBDs are in the process to be updated. They are one of our priorities. Drafts are not available for external circulation, but as needed, we can show you how advance some of these drafts are.

IEG looks forward to receiving (i) guidance notes on the PPSD; (ii) revised standard bidding documents

Management Update:

In developing the proposed new Procurement Framework, Management has reflected the feedback from IEG and has ensured that new Procurement modalities are fully reflected in the framework. For example, PPP (See Page 33 of the main body of the Regulations and its Annex XIV), competitive dialogue (See page 33 Regulations), negotiations (See page 33 of the Regulations, best and final offers etc. (see page 33 Regulations).

Management has drafted appendices to the Framework that provide detail on new modalities to further assist staff and borrowers in implementation.

In particular, the Project Procurement Strategy for Development (PPSD) is a critical tool that will be used to select the optimum procurement method cognizant of risks, market dynamics and operational needs.

Standard bidding documents will be augmented (new SBDs written as needed) to reflect new modalities once the proposed framework has been approved by the Board.

See Annex I of the CODE/AC package for a summary of the main changes between current Procurement Guidelines and proposed Regulations for Borrowers)