IFAD Procurement GuidelinesIFAD Procurement Guidelines(as amended by EB in December 2004)(as amended by EB in December 2004)

Dec 2010

GeneralGeneral

2

Purpose of the GuidelinesPurpose of the Guidelines

Provide guidance to entities implementing projects financed by

IFAD about policies & procedures governing procurement of

goods, works & consulting services

The Financing agreement and/ or LTB govern the legal

relationships between the Borrower & IFAD

The rights & obligations between the Borrower & its providers

are governed by the bidding documents & signed contracts and

not by the Financing Agreement or Guidelines

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Contents of IFAD Procurement GuidelinesContents of IFAD Procurement Guidelines

Part APart A

Part BPart B

Applicable procurement principles

Procurement of Goods & Works (includes related services):

Part CPart C Selection of Consulting Services

o Methods, policies & procedures for selection of Consultants

o Methods of procuremento Procedures for competitive bidding

PARTS:PARTS:

APPENDICES:APPENDICES:

I. Procurement Review by IFAD for Goods, Works & Services

II. Procurement arrangements under IFAD- funded projects with community participation

III. Domestic preference for Goods under ICB

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Responsibilities under the Agreement establishing IFADResponsibilities under the Agreement establishing IFAD

Borrower is responsible for Project implementation; IFAD must ensure:

Art 7.1(c)Art 7.1(c) Use of funds for the purposes intended with due attention to economy, efficiency & social equity

Art 7.2(j)Art 7.2(j) Appropriate preference to experts, technicians & supplies from developing countries

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Overall considerationsOverall considerations

Economy & efficiency

Equal opportunity to all eligible bidders

Fairness, integrity, transparency & good governance

Development of domestic capacity as well as appropriate

preference to experts, technicians & supplies from developing

countries

Competition as per procurement methods prescribed in

Guidelines & specified in Project’s approved procurement plan

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Project specific considerationsProject specific considerations

In accordance with Financing Agreement (FA)

Executed within project implementation period

Within budget allocations of FA

Consistent with Project’s approved AWPB & Procurement plan

Conducive to achieve Best value for money

Procurement of Goods, Works & Consulting services shall be:Procurement of Goods, Works & Consulting services shall be:

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Applicability of the GuidelinesApplicability of the Guidelines

Apply to all contracts for goods, works & services financed in

whole or in part by IFAD

For procurement of contracts not financed by IFAD:

1. Quality and compatibility with rest of project

2. Timely execution

3. Priced at economic level that does not affect financial

viability of project

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Eligibility RulesEligibility Rules

Change from September 2010: Goods, works & services provided by firms & individuals no longer have to be from IFAD member countries

Change from September 2010: Goods, works & services provided by firms & individuals no longer have to be from IFAD member countries

Pre – or post – qualification not to be denied for reasons other than capability and resourcesPre – or post – qualification not to be denied for reasons other than capability and resources

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Eligibility Rules – ExceptionsEligibility Rules – Exceptions

Primary boycott

UN security council resolution

Conflict of interest

Government owned enterprises have to prove that they are:

o Legally & financially autonomous

o Operating under commercial law

o Independent agencies of the Borrower

Declaration of ineligibility due to fraud & corruption

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Advance Contracting & Retroactive FinancingAdvance Contracting & Retroactive Financing

When borrowers wish to start procurement before loan

signing

Procurement to follow IFAD guidelines (reviews by IFAD)

Reimbursement only upon signature of Financing

agreement (limits set in agreement)

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Joint venturesJoint ventures

EncouragedEncouraged

IFAD does not accept joint ventures to be made mandatory

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Joint venturesJoint ventures

To ensure that procurement process is carried out in accordance with the guidelines, IFAD reviews:

• Procurement procedures

• Bidding documents

• Composition of bid evaluation committees

• Bid evaluations

• Award recommendations

• Contracts

Procedures detailed in Annex I

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MisprocurementMisprocurement

IFAD does not finance expenditures for contracts procured not

in accordance with provisions in the Financing agreement

and in the Procurement plan

Respective portion of financing allocated to such contracts is

cancelled

Misprocurement can be declared also after IFAD’s no

objection

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Fraud & corruptionFraud & corruption IFAD’s policy to ensure observation of highest standards of ethics Corrupt practice = offering, giving, receiving, soliciting (directly or

indirectly) anything of value to influence action of public official during procurement process

Fraudulent practice = misrepresentation or omission of fact (prior to or after submission of proposal) to influence the process

Collusive practices = scheme or arrangement between two or more bidders to establish bid prices at a non-competitive level

Coercive practice = harming persons – or their property – to influence their participation in the process

In case of fraud and corruption, IFAD will:o Reject award recommendationso Cancel relevant portion of loan if borrower fails to take actiono Sanction firms or individuals involved and declare ineligible for stated or

indefinite period of time IFAD has the right to require a provision in the bidding documents / RFP

enabling IFAD’s inspection & audit of accounts related to contract

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Procurement of Goods & WorksProcurement of Goods & Works

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Part B – Procurement of Goods & WorksPart B – Procurement of Goods & Works

Selection of appropriate procurement method critical for meeting

project’s needs

ICB incorporates all the guiding principles of procurement & should be

selected, where appropriate, with suitable allowance for domestic

preference for goods &, under prescribed conditions, for works

Where ICB is clearly not most economic & efficient method, such as:

o Project sites located in remote & scattered areas

o Project implementation undertaken with community participation

o Values too low to attract foreign bidders

other methods may be selected by Borrower

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Part B – Procurement of Goods & WorksPart B – Procurement of Goods & Works

Suited to high-value requirements

International business community are interested in participation

Provides all eligible bidders timely & equal opportunity to compete

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Other Methods of ProcurementOther Methods of Procurement

Must satisfy economy & efficiency requirement

Provide competition to the extent possible

Get the best value for money (prices reasonable ?)

Provide transparency to the extent possible

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LIB – Limited International BiddingLIB – Limited International Bidding

• Amounts are small, or

• There are only a few suppliers, or

• Other exceptional reasons that justify departure from full ICB

Appropriate when :

• No public advertising• Solicit bids from all suppliers when there are only a limited

number• Procedures otherwise identical to ICB• No domestic preference• Publication of Contract Award

Procedure :

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NCB – National Competitive BiddingNCB – National Competitive Bidding

Governed by National Law & Procedures & is appropriate when:

o Foreign bidders are not interested

o Amounts are small & local prices are below international market levels

o Nature of goods & works – dispersed geographically and/or over time

o Works are labour-intensive

Advertising limited to national press, official gazette & free open-access website

Bidding documents in national language

National Procedures must provide for adequate competition, access, objective

evaluation, transparency & provisions for bidders’ protests

Payment in local currency

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International or National ShoppingInternational or National Shopping

Appropriate for :o Low Value goods & works

o Off-the-shelf goods or simple works

o Standard specification commodities

No formal bidding documentso Requests for quotations to provide description and quantity of goods, delivery

time and place

Written quotationso Quotations by telex, facsimile or e-mail acceptable

At least three quotations (to ensure competitive prices) International shopping

o Solicit quotations from at least three suppliers in two countries

National shoppingo Goods available from more than one source

No public bid opening of quotations Brief contract or Purchase order

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Direct Contracting (Single or Sole-source Selection)Direct Contracting (Single or Sole-source Selection)

Accepted by IFAD for:

Extension of existing & usually competitively-awarded contract

Rationale:

Standardisation

Proprietary items

Process design requires critical items from specific supplier as condition of contractor providing performance guarantee

In exceptional cases such as response to natural disaster

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Procurement from Commodity MarketsProcurement from Commodity Markets

Prices of commodities fluctuate based on demand and supply & are

quoted in established markets at any given time

Multiple awards for partial deliveries over a given period to ensure

security of supply/adequate inventory & to capture favorable market

conditions

Contract forms consistent with market practices

List of pre-qualified bidders to be invited

Price quotation linked to market price at the time or prior to shipment

Bid validity as short as possible

Quotation may be telexed or faxed (if no bid security is required or if a

standing one is prescribed) and payment in a single currency (as specified

in the bidding documents) 24

Force account : Force account : (Borrower’s Own Personnel & Equipment)(Borrower’s Own Personnel & Equipment)

Quantities cannot be defined in advance

Works are small & scattered or in remote areas where qualified

bidders are unlikely to offer reasonable prices

Works to be carried out without disrupting ongoing operations

Risks of unavoidable work interruption better borne by borrower

than contractor

Emergencies needing prompt action

Appropriate for works, when:Appropriate for works, when:

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Procurement from UN AgenciesProcurement from UN Agencies

Procurement from specialized UN agencies, acting as

suppliers pursuant to own procedures, may be most

economical & efficient way to procure small quantities of off-

the-shelf goods

Use of such agencies as suppliers shall be specified in

Financing agreement

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Procurement Agents & Management ContractorsProcurement Agents & Management Contractors

When borrowers lack the necessary experience to deal with

international procurement

Agents shall follow procurement procedures stipulated in the

Financing agreement

Management contractors may also be similarly hired, against a

fee, for works

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Inspection AgentsInspection Agents

For pre-shipment inspection & certification of imports (quality,

quantity & verification of price)

Safeguards borrower’s interest in imports procured under ICB

Costs are ordinarily paid on a fee basis calculated as a % of the

value of imported goods (inspection costs are not considered in

bid evaluation)

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Procurement in Loans to Financial IntermediariesProcurement in Loans to Financial Intermediaries

Where loan proceeds are used by an intermediary institution

to on-lending to beneficiaries (individual farmers, farmer

groups/ associations, private sector micro-enterprises, etc…),

procurement method may be:

o Established local private sector or commercial practices

o ICB for large single items or bulk purchasing of common-

use goods

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Procurement with Community Participation Procurement with Community Participation

Community participation in procurement (to achieve specific social objectives or project sustainability) may be desirable for selected project components, whereby :

o Call for participation restricted to local community, community groups OR local institutions, CSOs & NGOs

o Increased utilisation of local know-how & materials

Employ labour-intensive or other technologies

Procurement procedures, tech. specifications and contract packaging simplified (respecting economy, efficiency & social equity). These are considered at appraisal & reflected in FA & procurement plan

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Procedures for Competitive BiddingProcedures for Competitive Bidding

Timely notification

Publication following IFAD’s review in UNDB or dgMarket. Contains info on Loan, Borrower, scope of ICB & expected dates for release of bid/prequalification documents

Borrower to maintain record of bidders interest

Specific Procurement Notice

o One newspaper of national circulation & official gazette (if any) as well as regional & international newspapers

o UNDB &/or dgMarket

o Also forwarded to bidders who responded to GPN

o Borrowers encouraged to submit to embassies, trade representatives & electronic bulletins & project website

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Bidding DocumentsBidding Documents

Invitation to bid

Instructions to bidders

Form of bid

Form of contract

Conditions of contract (general/special)

Specifications & drawings

Relevant technical data

List of goods/ bill of quantities

Delivery time/ schedule of completion

Appendices (formats for securities)

Bidding document shall furnish all information necessary for a prospective bidder. They generally include:

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Specifications & StandardsSpecifications & Standards

Drafted to encourage competition & define precisely the works to be

carried out or the goods to be supplied.

Standards & technical specifications quoted in bidding documents shall

promote the broadest possible competition.

In indicating specifications, reference to brand names, catalogue

numbers or similar classifications shall be avoided if it is necessary to

quote a brand name to clarify an otherwise unclear specification, the

words “or equivalent” shall be added.

As far as possible, borrowers shall indicate internationally accepted

standards such as those issued by the international standards

organization.

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Bid Opening Bid Opening

Same as deadline for bid submission or promptly thereafter

Public opening

Date and hour specified in invitation to bid

Bids not opened in public session are not to be considered

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Extension of Validity of BidsExtension of Validity of Bids

Requested in writing, if justified in exceptional circumstances

IFAD to be notified

Minimum period required to complete evaluation & award

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Pre & Post – Qualification Pre & Post – Qualification

For large or complex works, custom designed equipments, industrial plants, turnkey contracts or – in general – for complex assignments

Criteria: Experience and past performance in similar contracts Capabilities to perform Financial position All participating firms to be informed of result of pre-qualification Only prequalified bidders are invited to participate in bid

Pre-qualification

Post-qualification

To determine whether bidder with lowest evaluated cost has capability and resources to carry out contract

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Examination & Evaluation of BidsExamination & Evaluation of Bids

Borrowers should ascertain that bids:

o Meet eligibility requirements

o Have been duly signed

o Contain the required securities

o Are substantially responsive & generally in order GPN published following IFAD’s review in UNDB or dgMarket. Contains info on Loan, Borrower, scope of ICB & expected dates for release of bid/prequalification documents

Bids which are not substantially responsive shall not be considered further

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ConfidentialityConfidentiality

Evaluation is to be conducted confidentially

No information relating to the evaluation, clarifications &

recommendations is to be released to bidders or other

persons not officially concerned until publication of contract

award

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Domestic PreferenceDomestic Preference

Borrowers may - with the agreement of IFAD - grant a margin of

preference of 15% in the evaluation of domestic bids in ICB to those

bids offering goods with more than 30% labour, raw material and

components added in borrower’s country

Eligible borrowers may, with the agreement of IFAD, grant a margin

of preference of 7.5% to domestic contractors, in case of contracts

for works to be awarded on ICB basis

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Rejection of All BidsRejection of All Bids

Lack of competition

No responsive bids

Prices substantially higher than forecasted

Justified in case of:

In such case, Borrowers shall review bidding documents before re-tenderingIn such case, Borrowers shall review bidding documents before re-tendering

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Currency of Bid & PaymentsCurrency of Bid & Payments Bidding documents shall state:

o Currency(ies) applicable for bid prices

o Conversion procedure into single currency for bid evaluation purposes

o Currency(ies) applicable for contract price payments

Payment terms to be in accordance with

o Commercial practice

o Disbursement provisions established in LA

Payments may be made

o As a reimbursement to Borrower

o Directly to suppliers/ contractors (as per Borrower’s request)

o By means of a special commitment to L/C

o By the Borrower out of special account

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Price AdjustmentPrice Adjustment

Bid prices will be fixed

Price adjustment is applicable to reflect changes in major cost components

such as

o Labor

o Equipment

o Material

o Fuel

Price adjustment is generally applied in contracts involving delivery of goods

or completion of works which duration exceeds 18 months

Bidding documents shall indicate if:

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Validity of Bids & Bid SecurityValidity of Bids & Bid Security

Bidders shall submit bids valid for a period specified in bidding

documents, in order to enable the borrower to compare and

evaluate all received bids.

Borrowers may require a bid security to protect themselves

against irresponsible bids.

The amount of bid security should not be set so high as to

discourage bidders.

Bid security to remain valid for 4 weeks beyond validity period

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Performance Security & Retention Performance Security & Retention MoneyMoney For works contracts

Performance security (bond or bank guarantee): protects

borrower in case of breach of contract

To be of adequate duration to cover:

Defects liability period

Maintenance period up to final acceptance

Alternatively, specific % can be foreseen as retention money in

periodic payments

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InsuranceInsurance

To be provided from any eligible source

Bidding docs to reflect national rules with respect to

types & terms of insurance policies to be provided

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Liquidated Damages & BonusLiquidated Damages & Bonus

Provisions for liquidated damages when delays in delivery

of goods or completion of works would result in extra

costs should be included in conditions of contract

Provision & conditions for bonus may be made

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Force MajeureForce Majeure

Failure to perform is not

considered a default

If it is due to an

unforeseeable event

(force majeure)

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Language of Bid DocumentsLanguage of Bid Documents

Bidding & Prequalification documents in

Arabic

English

French

Spanish

Contracts with local bidders may be drafted in national language

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Applicable Law & Settlement of DisputesApplicable Law & Settlement of Disputes

Specified in the contract

IFAD or Cooperating institution shall not be named or asked

to name the arbitrators

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Procurement of Consultancy ServicesProcurement of Consultancy Services

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Procurement of Goods & Works

Selection of Consulting Services

product based knowledge based

open competition (advertise) expression of interest followed by

selective competition (short list)

price is major factor price is one of the factors

detailed specifications(bid documents)

general work program (term of reference)

single envelope procedure two envelope procedure

negotiations rare negotiation usual

invitation for bids (IFB) request for proposals (RFP)

bid and performance securities no securities recommended

Differences BetweenDifferences Between

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Selection of Consulting ServicesSelection of Consulting Services

Define policies and procedures for selecting, contracting

and monitoring consultants in project financed by IFAD in

whole or in part

The variety of consultants is described in following slides

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Conflict of InterestConflict of Interest

Conflict between consultants activities & procurement of

goods, works or services

Conflict among consulting assignments

Consultants shall provide their advice holding the clients’ interest

paramount and avoid conflicts with other assignments/interests.

Therefore, consultants shall not be hired under the following

circumstances:

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Terms of Reference (TOR) Terms of Reference (TOR)

Background information

Review of previous work

Statement of objectives

Scope of work needed

Scheduling & relationship to other work

Data & reports available

Inputs provided by client

Expected outputs by consultant

TOR not to be too detailed or inflexible thereby allowing consultants to propose own methodology & staffing

Contents

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Cost Estimate (Budget)Cost Estimate (Budget)

To be based on borrower’s assessment of the resources needed:

Staff time

Logistical support

Physical inputs

To be divided in 2 categories

Fee or remuneration

Reimbursable

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Short List of ConsultantsShort List of Consultants

Borrower’s responsibility

First consideration to firms expressing interest & possessing

relevant qualification

Comprise 3 to 6 firms

No more than 2 firms from same country

At least 1 firm from a developing country

IFAD may ask to expand or reduce short list

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Types of ConsultantsTypes of Consultants

Individual Partnership Limited liability (corporation) Joint venture

Private sector

Other

Universities Research institutes Un agencies Non-government organizations Divisions of manufacturers/ contractors

Government owned

Government subsidized

Public sector

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Types of Consulting ServicesTypes of Consulting Services

Detailed studies Design & specifications Preparation of bidding

documents

Pre investment

Sector studies

Feasibility studies

Project preparation

Advisory services , studies, training

Institution & management analysis

Capacity building

Implementation

Procurement

Project management

Construction supervision & inspection

Information systems

Accounting & auditing

Technical assistance

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QCBS Selection StepsQCBS Selection Steps

Prepare term of reference (TOR)

Cost estimate (budget)

Prepare expression of interest notice

Prepare short-list

Prepare & issue request for proposals (RFP): letter of invitation - information to consultant (ITC) - proposed contract

Receipt of proposals

Evaluate technical proposal

Evaluate financial proposals

Final evaluation of combined quality and cost

Negotiation and contract signature

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Evaluation of Proposals: Evaluation of Proposals: Consideration of Quality & CostConsideration of Quality & Cost

The evaluation of proposals to be carried out in two stages: first

quality & then cost

Evaluators of technical proposals should not have access to

financial proposals until the technical evaluation, including any

review & no objection, is concluded

The evaluation to be carried out in full conformity with

provisions of RFP

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Evaluation of the QualityEvaluation of the Quality

Relevant experience of firms

o Relevant assignment, similar size, complexity, technology, environment Methodology

o Schedules, responsiveness to TOR, logistics, backstopping, innovativeness, level of detail

Qualification of key staff

o Team composition, professional qualifications/experience, suitability, local knowledge, language, training, permanent staff

Transfer of knowledge Extent of participation by nationals amongst key staff (up to 10 points) Reject non-responsive proposals or those scoring below quality threshold

established in RFP Evaluation report of quality of proposals: establishes relative ranking of

proposals & explains weaknesses/strengths (relative marks sheets to be kept until project completion & its audit)

By committee of 3 or more specialists

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Evaluation of CostEvaluation of Cost

Return unopened financial envelopes of non-responsive consultants & those scoring below threshold

Notify consultants that scored above threshold of date & time set for opening of financial envelopes

Announce name of consultant, quality score & offered price & prepare minutes of public opening

Correct arithmetic errors, convert to single currency as per RFP For evaluation purposes cost excludes local taxes but includes

reimbursable, etc. A direct proportional or other methodology (as established by RFP) may

be followed to allocate marks for the cost element Proposal with highest total score is selected & invited for negotiations

Upon receipt of IFAD’s no-objection to quality evaluation:

The weight for cost is allocated depending on complexity of assignment but normally 20 percentThe weight for cost is allocated depending on complexity of assignment but normally 20 percent

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Other Method of SelectionOther Method of Selection

To be used when QCBS is not appropriate or

In case of highly specialized assignments when quality is most

important factor

Methods to apply to be specified in Financing agreement

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Quality-based SelectionQuality-based Selection

Complex or highly specialized assignments: no precise TOR,

innovation needed (e.g., economic or sector studies, etc.)

High downstream impact (e.g., feasibility studies, dams, policy

studies, etc.)

Non-comparable outputs (e.g., management advice, policy

studies, etc.)

Appropriate for:

64

Selection under a Fixed Budget Selection under a Fixed Budget

For simple and well-defined assignments where the budget is

fixed. RFP indicates available budget. Technical evaluation first

followed by public bid opening of financial envelopes

Award to highest ranked technical proposal within budget

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Least-cost SelectionLeast-cost Selection

Appropriate only for assignments of a standard or routine nature

Minimum qualifying mark for quality stated in RFP

Competition only on cost

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Selection based on Consultant’s QualificationsSelection based on Consultant’s Qualifications

Prepares TOR

Requests expression of interest with information on consultant’s

experience & competence

Selects most appropriately qualified firm

Firm then presents combined technical & financial proposal for

negotiations

For “very small” assignments :

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Single Source SelectionSingle Source Selection

Exceptionally used since:

No competition

No transparency

Encourages unacceptable practices

IFAD can consider this method for:

Continuation of previous work awarded in a competition (envisaged by original RFP, necessary for continued same consultant liability)

Rapid selection in emergency situations

Very small assignments

Exception experience

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Types of ConsultantsTypes of Consultants

Teams are not required No outside support

(backstopping needed) Individual experience &

qualifications paramount

Use When:

Review

Terms of Reference

Qualification of Consultant (CV)

Conditions of Employment (remuneration & benefits, simple contract, work environment)

Less formal than hiring firms

Advertisement not required

Short List mandatory (at least 3 candidates)

Selection

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Selection of Particular Types of ConsultantsSelection of Particular Types of Consultants

Selection of UN agencies as consultants

Advantages neutralized for evaluation/ comparison (borrower may accept granting immunities/privileges, tax exemption, special payment terms provided these are neutralized in competitive selection)

Use of Civil society organizations (CSOs)

Non-profit organizations. For community participation projects, with special local knowledge requirements, short-list may be all CSOs

Procurement agents (PAS)

To be selected using QCBS procedures with cost being given a weight up to 50%. Usually paid a % of value of procurement handled, or combination of % and fixed fee. When PAS provides advisory services/ acts as “agents” for a whole project, payment made on a time basis

Inspection agents

To be selected using QCBS procedures with cost being given a weight up to 50% & using a contract format with payments based on a percentage of the value of goods inspected and certified

Auditors

To be selected according QCBS with cost as a substantial selection factor (40 - 50 points), or by “least-cost selection”; LCS may be used for very small assignment

Service delivery contractors

Frame work contracts. (For hiring large numbers of social workers with defined qualifications & employment terms)

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Procurement of Services Procurement of Services Long-Term and Large AssignmentLong-Term and Large Assignment

Example: One NGO to perform a full component or sub-component of the project over several years

RFPQ CBS

EVALUATIONTWO STAGES : Technical Evaluation (70 or 100 points) Financial Evaluation (30 points)

Letter of invitation (LOI) with conditions of bidding and evaluation system and negotiations process; Background of the Project (Appraisal Report); Scope of services + specific TORs for experts; Forms for Technical Proposal (previous experience, CVs, comments on assignment, planning M & E, reporting …); Forms for Financial Proposal (management fees, AWPB….)

CONTRACTS Contract Complex Time Based on AWPB Contract Complex Time Based

If EOI before may be RFP under fixed budget, least-Cost selection

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Procurement of Services Procurement of Services Medium Short Term AssignmentMedium Short Term Assignment

Example: One consultancy firm to undertake a baseline survey lasting several months

RFPQ CBS

EVALUATIONTWO STAGES : Technical Evaluation (70 or 100 points) Financial Evaluation (30 points)

Letter of invitation (LOI) Background of the Project Scope of services + specific TORs for experts + outputs Forms for Technical Proposal (previous experience, CVs, comments on

assignment, planning M & E, reporting …); Forms for Financial Proposal (management fees, AWPB….)

CONTRACTS Contract Complex Time Based Contract Lump Sum Remuneration

Also RFP based on consultants qualification, least cost selection, fixed budget

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Review by IFADReview by IFAD

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Appendix 1: Review by IFADAppendix 1: Review by IFAD

Contract packaging

Applicable procedures

Scheduling of procurement process

IFAD reviews the procurement arrangements proposed in the

procurement plan for its conformity to Financing agreement,

including:

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Procurement PlanProcurement Plan

Procurement plan of first 18 months to be agreed during

project preparation

Procurement plan shall include:

All major procurements

Proposed methods of procurement

Related IFAD review procedures

Procurement plan to be updated after loan effectiveness

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Prior Review – Goods & WorksPrior Review – Goods & Works

Prequalification documents

Bidding documents (before bids are invited)

Evaluation report & contract award

Change in contract further complaints from bidders

Contract modifications

Borrowers should request IFAD’s no-objection for:

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Post Review – Goods & WorksPost Review – Goods & Works

Borrower shall retain procurement documentation up to 2

years after project closing date

Documentation shall be furnished to IFAD upon request

Mis-procurement if inconsistency between contract &

Procurement plan/ Financing agreement

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Prior Review - ConsultantsPrior Review - Consultants

Proposed cost estimate & RFP (including short-list) before inviting proposals

Technical evaluation report (consistent with provisions of RFP); if price is a factor, Borrower can open financial envelope after receipt of no-objection

For info: Final Evaluation Report (combined technical + financial) with proposed award for winner

Copy of complaints – if any – should be sent to IFAD

If the result of a complaint brings the Borrower to change contract award recommendation, this should be sent to IFAD for NO

No-obj. based on copy of initialed negotiated contract with explanation of any changes in TOR, staff etc.,

Copy of final contract prior to first disbursement

Borrowers should request IFAD’s no-objection for:

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Procurement of Goods & Works with Procurement of Goods & Works with Community ParticipationCommunity Participation

79

IntroductionIntroduction

Community participation in design & implementation is highly

desirable

Procurement with community participation consists of a

simplification of existing methods & shall be outlined in the

Financing agreement

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Benefits of Community ParticipationBenefits of Community Participation

Increased relevance of project assistance

Enhanced community ownership

Contribution to a reduction in poverty

Increased economy & efficiency

Enhanced capacity & skills within the community &

consequent generation of employment

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Checklist to be followed/modified by project designers to determine whether & how the community will play a constructive & beneficial role

Considerations during Project Considerations during Project DesignDesign

Borrower’s regulatory framework

Organizational capacity

Existence or lack of formal community organization

Institutional capacity to undertake resource management responsibilities

Homogeneity with the beneficiary community group

Existence of methods to ensure accountability

Capacity and technical skills

Administrative & accounting skills

Intermediaries

Cost-benefit analysis

Beneficiary community’s contribution82

Quantity and Value of ProcurementQuantity and Value of Procurement

Once the goods, works & related services to be procured are

identified, estimation of quantity of goods & amount of works

& services is critical for procurement planning & preparation

When quantities to be procured are undetermined until

project implementation (demand-driven), it may be

permissible to allocate funds out of the loan as “undetermined

procurement”

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When community groups are supposed to act as implementing agencies

and carry out project implementation, the following factors are to be considered:

Community Groups as Implementing Community Groups as Implementing AgenciesAgencies

Organizational capacity

Rules of operation

Accountability of group leaders

Ability to receive public funds

Ability to contract

Dispute resolution

Financial status

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Thank youThank you