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Joint WTO/WB Regional Workshop on Procurement Reform and Transparency

Joint WTO/WB Regional Workshop on Procurement Reform and Transparency. Session 4: Objectives of Procurement Regimes and Non-Discrimination and Preferences Basic Principles and Provisions for Procurement in Multilateral Instruments Mr. Jean-Jacques Raoul World Bank

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Joint WTO/WB Regional Workshop on Procurement Reform and Transparency

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  1. Joint WTO/WB Regional Workshop on Procurement Reform and Transparency Session 4: Objectives of Procurement Regimes and Non-Discrimination and Preferences Basic Principles and Provisions for Procurement in Multilateral Instruments Mr. Jean-Jacques Raoul World Bank Dar es Salaam January 14-17, 2003

  2. Purpose • Briefly show commonalities in international instruments and national legislation regarding core principles of procurement, non-discrimination and preferences, using the World Bank Guidelines, and the UNCITRAL Model Law.

  3. World Bank/MDB Financed Procurement Projects • Obligations of the Borrower derive from a Loan Agreement (LA), which • covers procurement • refers to the WB Procurement and Consultant Guidelines • defines procurement methods for Borrower’s use • supercedes provisions in the national law if inconsistent with LA

  4. World Bank Guidelines: General Considerations • Need for economy and efficiency • Need for high-quality services (Consultants) • Equal Opportunity to compete • Encourage the development of national industry • Importance of transparency in the process • The same are stated in Preamble of UNCITRAL Model Law

  5. Procurement Methods (Goods, Works and Related Services) • Open competitive bidding must generally be used, with or without pre-qualification: • International Competitive Bidding is preferred (allows for margin of domestic preference) • National Competitive Bidding used for smaller contracts, unlikely interest of international bidders • Basically, principles are similar for ICB and NCB, exceptions: language, advertisement media, bidding time, bid/contract currency, and terms of contract

  6. Procurement Methods - 2 • Other methods of procurement are allowed, as exceptions (Limited International Bidding, Shopping, Direct contracting) • Misprocurement

  7. Selection Methods (Consulting Services) • Advertisement for expressions of interest, short list of qualified candidates, request for proposals, evaluation of technical and financial proposals • Quality and Cost Based Selection is the preferred method – Quality: 80-90% weight, Cost: 20-10% weight. • Other selection methods allowed if specified: Quality Based Selection, Selection under a fixed budget, least cost selection, selection based on qualification and single source selection

  8. Non-Discrimination Provisions in WB Guidelines • Eligibility: nationals from Bank-member countries (most other MDBs restrict nationality of bidders and origin of goods to eligible member countries) (Art 1.6) • In respect to qualification, the Bank does not permit a Borrower to exclude a firm for reasons unrelated to its capability and resources to successfully perform the contract (Art 1.7) • Primary boycott accepted if prescribed by law, provided this does not preclude effective competition (Art 1.8ai) • Exclusion of nationals from countries under UN sanction (Art 1.8aii) • .

  9. Preference Provisions in WB Guidelines • Domestic preference for goods (15%) and works (7.5 %). Eligibility for goods having a minimum of 30% local content. Eligibility for domestic contractors in countries below specific of income per capita (MDBs have various provisions for domestic preference) • No monetary preference for Consultants; however, participation of nationals as key staff in consultant’s proposals may be given additional points in technical evaluation.

  10. Non-Discrimination Provisions in UNCITRAL Model Law • Preamble highlights non-discrimination, fair and equitable treatment of all bidders, promotion of international trade • Qualification based on bidder’s professional and technical competence; financial, physical and personnel resources, experience and reputation (Art 6.1b) • “The procuring entity shall impose no criterion, requirement or procedure with respect to the qualifications of bidders other than those provided for in this article” (Art 6.3), • “The procuring entity shall establish no criterion, requirement or procedure with respect to the qualifications of bidders that discriminates against or among bidders … on the basis of nationality….” (Art 6.5), subject to: • The procurement entity may decide, on grounds specified in the procurement regulations or according to other provisions of law, to limit participation on the basis of nationality; decision must be disclosed and recorded (Art 8)

  11. Preference Provisions in UNCITRAL Model Law • Margin of preference for domestic contractors or suppliers of services or for domestically produced goods, if authorized by the procurement regulations (Art 34.4d)

  12. Conclusion • WB Guidelines have specific provisions on eligibility and domestic preference • The provisions of UNCITRAL Model Law are fully consistent with WB GL

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