World Bank’s new methodology

1. World Bank’s new methodology In Country procurement assessment World Bank’s Methodology for Procurement laws: back to country systems?

2. Background • Projects financed and implemented ($ 22 billions each year) • following the current standing policies of the Bank • Principles of international best practice for procurement, bidding documents and selection procedures (international competitive bidding). • Guidelines : Procurement under IBRD Loans and IDA Credits and Selection and Employment of Consultants by World Bank Borrowers (2004)

3. Contract financed by loan or credit Borrowing State contract loan agreement Company World Bank

4. The Paris Declaration • OECD / World Bank • March 2005, • measure success, or failure, in making aid more effective to eradicate poverty. • Development Assistance Committee (DAC) Working Party on Aid Effectiveness

5. In 2005, on average, 39-40% of aid flows used country public financial management and procurement systems. • Indicator 2(b) Procurement – One-third of partner countries move up on the four-point scale used to assess performance in reforming. • 2007 : failure in the Indicator 2b

6. 2006 : OECD/DAC benchmarking tool to assess the procurement systems • to benchmark the strengths and weaknesses of the country's procurement system.

7. 54 indicators • Procurement system divided into four pillars: • legal framework, institutional framework and management capacity, operations and market practices, and integrity and transparency. • The four pillars are defined further by twelve indicators, each of which has sub-indicators totaling to fifty-four

8. Paris Declaration Report (2007) on Procurement systems: • “Country representatives commonly feel that buy-in from donors has been inadequate, while donors report that legal rules may have improved, but systems are still weak”.

9. A new commitment • The "Status Report and Supplemental Note on Use of Country Systems in Bank-Supported Operations (R2007-0079)" commitment to define a detailed methodology for handling procurement under the country pilots.

10. A new methodology • Since 2007, the World Bank is preparing a draft Detailed methodology for Use of Country Procurement Systems • Proposing to pilote the use of country procurement systems in selected countries and in selected projects.

11. Use of country systems: a new trend? • February 2005: Board discussion on Expanding the Use of Country Systems in Bank-Supported Operations • country systems used for environmental and social safeguard issues in projects • Now expanded to include procurement and financial management

12. STRENGTHENING AND USINGCOUNTRY SYSTEMS • Enhancing control and oversight of procurement in projects financed by the WB • scaling up development impact, • increasing country ownership, • facilitating harmonization, • meeting commitments under the Paris Declaration

13. Goal? • “Country procurement system” = each country context? • Or "equivalent" to the principles and policies defined by the Bank under its current Guidelines? • “Equivalency test”