AFRICAN DEVELOPMENT BANKAFRICAN DEVELOPMENT FUND

RULES OFPROCEDURE

FOR PROCUREMENTOF GOODS AND WORKS

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TABLE OF CONTENTSPages

1. INTRODUCTION............................................................................................................. 1

1.1 Definitions........................................................................................................... 11.2 Purpose.............................................................................................................. 21.3 Application.......................................................................................................... 3

2. GENERAL...................................................................................................................... 4

2.1 Basic Principles .................................................................................................. 42.2 Eligibility ............................................................................................................. 52.3 Mode of Procurement .......................................................................................... 52.4 Parallel and Joint-financing................................................................................... 62.5 Type and Size of Contracts .................................................................................. 62.6 Information on Approved Projects ......................................................................... 72.7 Advance Procurement Action ............................................................................... 82.8 Retroactive Financing .......................................................................................... 82.9 Joint Ventures ...................................................................................................... 82.10 Bank Review ........................................................................................................ 82.11 Misprocurement .................................................................................................. 92.12 Fraud and Corruption............................................................................................. 92.13 Reference to the Bank

3. INTERNATIONAL COMPETITIVE BIDDING..................................................................... 10

A. Nature, Advertisement, Prequalification and Invitation to Bid.....................................10

3.1 Nature and Procedure......................................................................................... 103.2 Advertisement and Notification............................................................................. 103.3 Invitation to Bid .................................................................................................. 103.4 Prequalification of Bidders ................................................................................... 11

B. Bidding Documents ..............................................................................................12

3.5 General ............................................................................................................ 123.6 Language ........................................................................................................... 133.7 Clarity of Bidding Documents................................................................................ 133.8 Specifications and Standards ............................................................................... 143.9 Origin of Goods and Services ............................................................................... 143.10 Evaluation Factors............................................................................................... 143.11 Preference Allowances ........................................................................................ 143.12 Pricing.................................................................................................................153.13 Price Adjustment..................................................................................................153.14 Insurance and Transportation ............................................................................... 163.15 Currency of Bids ................................................................................................. 163.16 Currency of Payment ........................................................................................... 173.17 Terms and Methods of Payment ........................................................................... 173.18 Submission of Bids.............................................................................................. 183.19 Alternative Bids ................................................................................................... 183.20 Validity of Bids .................................................................................................... 183.21 Bid Securities ..................................................................................................... 183.22 Conditions of Contract ......................................................................................... 183.23 Guarantees and Performance Bonds..................................................................... 183.24 Liquidated Damages and Bonus Clauses .............................................................. 19

3.25 Sub-contracts ................................................................................................................. 193.26 Joint Ventures or Consortia .................................................................................. 19

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3.27 Force Majeure..................................................................................................... 193.28 Settlement of Disputes and Governing Law............................................................ 20

C. Issue and Delivery of Bidding Documents...............................................................20

3.29 Issue of Bidding Documents............................................................................................ 203.30 Bid Period.......................................................................................................... 213.31 Delivery of Bids ................................................................................................... 21

D. Bid Opening, Evaluation and Award of Contract ......................................................22

3.32 Bid Opening Procedures ...................................................................................... 223.33 Clarification of Bids .............................................................................................. 223.34 Confidentiality of Procedures ................................................................................ 223.35 Examination of Bids............................................................................................. 223.36 Evaluation and Comparison of Bids....................................................................... 233.37 Domestic and Regional Preferences ......................................................................243.38 Post-qualification of Bidders ................................................................................. 253.39 Extension of Validity of Bids ................................................................................. 253.40 Award of Contract................................................................................................ 253.41 Return of the Bid Bonds ....................................................................................... 263.42 Rejection of Bids ................................................................................................. 26

4. OTHER FORMS OF PROCUREMENT............................................................................. 28

4.1 Limited International Competition .......................................................................... 284.2 National Competitive Bidding................................................................................ 284.3 International Shopping......................................................................................... 294.4 National Shopping............................................................................................... 304.5 Force Account .................................................................................................... 304.6 Direct Purchase .................................................................................................. 314.7 Procurement Agents ............................................................................................324.8 Inspection Agents ................................................................................................324.9 Procurement in Loans to Financial Intermediaries................................................... 324.10 Procurement on Non-Project Lending (Structural and Sectoral Adjustment

Loans) Intended to Finance Import Programs ....................................................... 334.11 Procurement Under BOT and Similar Private Sector Arrangements ..........................334.12 Community Participation in Procurement ................................................................34

APPENDIX I: ELIGIBILITY CRITERIA ....................................................................................... 35

1.1 Eligibility of the Bidder ..........................................................................................351.2 Eligibility of the Goods, Works and Related Services ..............................................36

APPENDIX II: ADVANCE PROCUREMENT ACTION (APA) ........................................................ 37