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MANUAL FOR CONDUCTING VERY SMALL-VALUE PROCUREMENT UNDER WORLD BANK/IDA SMALL GRANTS, LOANS AND CREDITS

INTRODUCTION

Procurement under Loans and Credits

This manual consists of four parts. Part I – General, includes the discussion of the nature of small procurement, identification of needs for goods, works and services under small grants and loans and credits, and roles and responsibilities. Parts II and III contain a simple and step-by-step use of different methods and procedures applicable to the procurement of small-value goods, works and services. Part IV includes the sample documents for selection of suppliers, contractors and consultants as well as the sample documents that may be used for payment purposes.

Procurement of goods, works and services under World Bank-financed projects is conducted in accordance with the following procurement guidelines:

Goods and Works: Procurement Under IBRD Loans and IDA Credits (January 1995, revised January and August 1996, September 1997, and January 1999; and

Consultant Services: Selection and Employment of Consultants (January 1997, revised September 1997 and January 1999).

These guidelines are included by reference in a loan, credit or grant agreement and are legally binding on the parties to these agreements.

The main purpose of these guidelines is to inform all concerned, who carry out projects financed in whole or in part by a loan, credit or grant from IBRD/IDA, about arrangements of procurement of goods and works and related services, and define procedures for selecting, contracting and monitoring consultants required for such projects; these guidelines are also intended as a training tool for project staff.

The guidelines describe all procurement methods and their procedures for all types of projects. For a specific project only those methods and procedures of the guidelines apply which are considered appropriate for the project and that are included (or referred to) in the loan/credit agreement, either specifically, or implicitly (e.g., by reference to a "Project Implementation" or "Operational" Manual).

The guidelines referred to above are based on the principles of economy and efficiency in project implementation, opportunity for all eligible bidders to compete, and the importance of transparency. In order to ensure that these principles are respected, the Bank requires the use of competitive procedures, such as international and national competitive bidding, advertisement of consulting opportunities, and even mandates the use of standard bidding documents for this purpose. The guidelines deal in some detail with the procedures to be followed in international competition.

Procurement Under Grants

The use of international, and national competitive bidding may not be the most appropriate methods of procurement to achieve economies of scale and desired efficiency for very small-value items of goods, works and services included in grants. The Bank agrees in such cases to the application of very simplified procedures in achieving the objective of economy and efficiency, such as commercial practices, international and national shopping, etc. For these procedures, the Bank lays down certain minimum procedural requirements to ensure economy and efficiency, and supervises the relevant procurement processes only periodically through ex-post reviews. For implementing activities financed by small grants, under which very small value (e.g., less than US$10,000) items of goods, works and services are purchased, yet simpler purchasing procedures have to be applied. Part II.1 deals with these procedures in detail.

procurement_form_eng.doc (438 Kb)