UN – WB Partnership in Procurement

1. UN – WB Partnership in Procurement Fiduciary Forum OPCPR

2. Background • WB-UN have long history of collaboration under emergency and regular operations. • WB and UN had difficulties working together ( different legal and fiduciary framework) • Different approaches have been adopted

3. To overcome the obstacles

4. Renewed commitment for collaboration • The Bank’s policy on rapid response to crises and emergencies (OP 8.00) underscored the importance of close Bank collaboration with other development partners. • Strengthened the commitment among Management and staff of both organizations to strengthen the WB/UN partnership • Executive Directors requested management to develop fiduciary framework arrangements for WB/UN cooperation. • Achieve more effective, efficient and sustainable response to our client countries

5. Main Challenge…………… • Resolve the issue of interoperability between Bank and UN systems/procedures • Conceptual: Understand each other’s policies and appreciate the built-in constrains. • Material: Audit and review requirements Risk allocation, liabilities and remedies Treatment of F&C, and debarred firms and individuals

6. Progress so far…………. Procurement in the UN system is governed by the established regulations and rules of each agency, as the Bank has its own procurement policies The WB will not assess the UN procurement systems and policies Results: Fiduciary Principles Accord Standard form of agreement for supply of health- related goods.

7. FPA- Procurement Policies and Procedures • Based on principles of economy, efficiency, value for money, and transparency. • Appropriate procedures for different types of procurement (goods, works, services, etc.). • Use of a range of generally accepted procurement methods, including open competitive bidding, invitation to bid to pre-qualified suppliers. • Provisions for publication of contract awards. • Clear requirements, accountability, and authority to take procurement actions. • Use of contract documents that clearly define parties’ rights and obligations. • Appropriate processes/structures for monitoring procurement actions and timely reporting of issues and complaints to officials with authority to address them and provide for remedies. • Ability to require contractors to disclose debarment decisions by other organizations.

8. FPA- Addressing Fraud and Corruption • Staff regulations and administrative procedures— including code of conduct and disclosure of financial information by staff above certain level—are in place to ensure ethical behavior of staff and avoid fraud and corruption. • Procedures and administrative practices are in place to investigate or follow-up on any information relating to the organization’s operations that indicates the need for further scrutiny (including fraud and corruption). • Mechanisms are in place to help against fraud and corruption, including Hotline and Whistleblower Protection. • There is an established internal investigations function that is either independent or set up to operate without management interference. • Mechanisms are in place to exclude from the procurement process (on a temporary or permanent basis) firms or individuals determined by the organization to have engaged in fraudulent or corrupt activities. • Organization may take due regard of exclusion or debarment decisions by other international organizations.

9. Agreed Process for addressing F&C Bank’s obligations in its capacity as trustee will not include any liability for unrecovered funds that are written off by the UN agency. each UN agency receiving proceeds from Bank-administered TFs would be required to provide regular progress reports on actions taken to address a serious situation and results obtained, including details of any recovery of funds or write-off of losses

10. Agreement of the supply of health related goods • Main deviations from Bank procurement policies: • the Bank’s right to impose sanctions in the event of fraud and corruption (para. 1.14(d)); • the Banks’ right to require borrowers to include provisions in Bank-financed contracts that allow the Bank to inspect and audit records and accounts of suppliers and service providers and their subcontractors and sub-consultants (para. 1.14(e)); • the requirement that borrowers use standard forms of contract containing conditions that provide a balanced allocation of risks and liabilities (paras. 2.12 and 2.38); and • the requirement that Bank procedures as outlined in the Guidelines apply to all contracts for goods or works that are financed partly or wholly from a Bank loan or credit (paras 1.1 and 1.5).

11. Next Steps……………… • Standard form of agreement for TA- Efforts are underway • Main challenges: • Definition and scope of UN engagement • Staff input

12. Useful Links…. • Guidance note on procurement under OP8.0.http://go.worldbank.org/3082C6WPF0 • List of regional procurement focal points. http://intresources.worldbank.org/INTPROCUREMENT/Resources/DesignatedEmergencyStaff_Aug09.docx • List of pre-identified procurement agents.http://go.worldbank.org/0ER5XGLNJ0 • Template for use of UN agencies- as suppliers.http://go.worldbank.org/A0AD3BFX50