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Guidelines Procurement Under IBRD Loans And IDA CreditsMay 2004Revised October 1, 2006I. Introduction 6 Purpose 6 General Considerations 6 Applicability of Guidelines 7 Eligibility 7 Advance Contracting and Retroactive Financing 7 Joint Ventures 7 Bank Review 7 Misprocurement 7 References to Bank 7 Fraud and Corruption 7 Procurement Plan 7II. International Competitive Bidding 7A. General 7 Introduction 7 Type and Size of Contracts 7 TwoStage Bidding 7 Notification and Advertising 7 Prequalification of Bidders 7B. Bidding Documents 7 General 7 Validity of Bids and Bid Security 7 Language 7 Clarity of Bidding Documents 7 Standards 7 Use of Brand Names 7 Pricing 7 Price Adjustment 7 Transportation and Insurance 7 Currency Provisions 7 Currency of Bid 7 Currency Conversion for Bid Comparison 7 Currency of Payment 7 Terms and Methods of Payment 7 Alternative Bids 7 Conditions of Contract 7 Performance Security 7 Liquidated Damages and Bonus Clauses 7 Force Majeure 7 Applicable Law and Settlement of Disputes 7C. Bid Opening, Evaluation, and Award of Contract 7 Time for Preparation of Bids 7 Bid Opening Procedures 7 Clarifications or Alterations of Bids 7 Confidentiality 7 Examination of Bids 7 Evaluation and Comparison of Bids 7 Domestic Preferences 7 Extension of Validity of Bids 7 Postqualification of Bidders 7 Award of Contract 7 Publication of the Award of Contract 7 Rejection of All Bids 7 Debriefing 7D. Modified ICB 7 Operations Involving a Program of Imports 7 Procurement of Commodities 7III. Other Methods of Procurement 7 General 7 Limited International Bidding 7 National Competitive Bidding 7 Shopping 7 Direct Contracting 7 Force Account 7 Procurement from United Nations Agencies 7 Procurement Agents 7 Inspection Agents 7 Procurement in Loans to Financial Intermediaries 7 Procurement under BOO/BOT/BOOT, Concessions and Similar Private Sector Arrangements 7 PerformanceBased Procurement 7 Procurement under Loans Guaranteed by the Bank 7 Community Participation in Procurement 7Appendix 1: Review by the Bank of Procurement Decisions 71. Scheduling of Procurement 72. Prior Review 75. Post Review 7Appendix 2: Domestic Preferences 71. Preference for Domestically Manufactured Goods 77. Preference for Domestic Contractors 7Appendix 3: Guidance to Bidders 71. Purpose 72. Responsibility for Procurement 73. Bank’s Role 75. Information on Bidding 76. Bidder’s Role 710. Confidentiality 711. Action by the Bank 7 7AcronymsBOOBuild, own, operateBOOTBuild, own, operate, transferBOTBuild, operate, transferCIFCost, Insurance, and FreightCIPCarriage and Insurance Paid (place of destination)CPTCarriage Paid To (named place of destination)DDPDelivered Duty PaidEXWEx works, Ex factory, or Off the ShelfFCAFree Carrier (named place)GNPGross National ProductIBRDInternational Bank for Reconstruction and Development (World Bank)ICBInternational Competitive BiddingIDAInternational Development AgencyLIBLimited International BiddingNCBNational Competitive BiddingNGONongovernmental organizationPADProject Appraisal DocumentSASpecial AccountSBDsStandard Bidding DocumentsUNUnited NationsUNDBUnited Nations Development BusinessI. IntroductionPurpose The purpose of these Guidelines is to inform those carrying out a project that is financed in whole or in part by a loan from the International Bank for Reconstruction and Development (IBRD) or a credit or grant from the International Development Association (IDA), Procurement requirements of IBRD and IDA are identical, and references in these Guidelines to the Bank include both IBRD and IDA, and references to loans include IBRD Loans as well as IDA credits or grants and project preparation advances (PPAs). References to Loan Agreement includes Development Credit Agreement, Development Financing Agreement, Development Grant Agreement, and Project Agreement. References to “Borrower” include the recipient of an IDA Grant. of the policies that govern the procurement of goods, works, and services (other than consultant services) References to “goods” and “works” in these Guidelines include related services such as transportation, insurance, installation, missioning, training, and initial maintenance. “Goods” includes modities, raw material, machinery, equipment, and industrial plant. The provisions of these Guidelines also apply to services which are bid and contracted on the basis of performance of a measurable physical output, such as drilling, mapping, and similar operations. These Guidelines do not refer to Consultants’ services, to which the current Guidelines: Selection and Employment of Consultants by World Bank Borrowers apply (referred to herein as Consultant Guidelines). required for the project. The Loan Agreement governs the legal relationships between the Borrower and the Bank, and the Guidelines are made applicable to procurement of goods and works for the project, as provided in the agreement. The rights and obligations of the Borrower and the providers of goods and works for the project are governed by the bidding For the purposes of these Guidelines, the words “bid” and “tender” shall have the same meaning. documents, and by the contracts signed by the Borrower with the providers of goods and works, and not by these Guidelines or the Loan Agreements. No party other than the parties to the Loan Agreement shall derive any rights therefrom or have any claim to loan proceeds.General Considerations The responsibility for the implementation of the project, and therefore for the award and administration of contracts under the project, rests with the Borrower. In some cases, the Borrower acts only as an intermediary, and the projec