1

THE PROJECT CYCLE

and

PROCUREMENT

2

THE BANK’S LOAN PROCESSING CYCLE

Country Assistant Strategy

IMPLEMENTATION COMPLETION REPORT

PROJECT IDENTIFICATION

PROJECT SUPERVISION

LOAN APPROVAL SIGNING AND EFFECTIVENESS

PROJECT PREPARATION

PROJECT PRE-APPRAISAL/APPRAISAL

LOAN NEGOTIATIONS

3

IDENTIFICATION PROCUREMENT ISSUES

Public sector procurement procedure/rules (Eligibility) - CPAR

Private construction, manufacturing industry and consultant participation

NGO, UN Agencies, Community Participation Acceptability of National Bidding Procedures Borrower Capacity

Institutional Setup Strengthening Needs

4

PROJECT PREPARATION

World Bank’s Assistance for Preparation Procurement arrangements Selection of procurement methods Cost estimates and packaging Procurement planning Bidding Documents Workshops/Training Seminars

5

PROJECT PREPARATION ISSUES (contd.)

Other donors – their procurement procedures Capacity Assessment of implementing agency(ies)

and measures for strengthening

(Operational Manual, Procurement Training,

International Procurement Consultants, Project

Launch Workshop)

6

APPRAISAL

Procurement Review of preparedness, cost estimates,

procurement arrangements Implementation schedule

Institutional Capability to implement project Training, staff needs

7

APPRAISAL

Results Project Appraisal Document (PAD) Draft Legal Documents

CovenantsAgreements (Loan/Guarantee)

8

PROJECT APPRAISAL DOCUMENT (PAD)

At Appraisal agreement reached with Borrower Procurement arrangements Procurement plans Review procedures and thresholds Procurement reporting and monitoring

during implementation

9

NEGOTIATIONS

Minutes of negotiations record relevant issues especially any understanding reached or changes in scope, thresholds for non-ICB and prior reviews, waivers, etc.

Finalize bidding and contract documents for first year

10

NEGOTIATIONS

Ensure procurement Schedule 4 of Loan Agreement and Annex 6 of PAD reflect changes if any including thresholds

Issue GPN (Updated Annually)

11

BOARD PRESENTATION

Board Presentation for Approval

Approved Project for Implementation

12

IMPLEMENTATION

ROLES

AND

RESPONSIBILITIES

13

PROCUREMENT RELATIONSHIPS

World Bank

SupplierWorks Contractor

Consultant

Borrower

•Prequalification/Expression of Interest

•Bidding/Selection Documents

•Contracts

Loan/CreditAgreement

Complaints

14

THE BANK’S ROLE

Lend for specific projects Assist the Borrower Provide information on projects Sign Loan Agreement Review Compliance with Loan Agreement Supervise and monitor the process Verify withdrawal applications Address complaints

15

BORROWER’S ROLE

Responsible for Procurement

Prepare procurement plan Prepare and issue bidding documents Invite bids Receive and evaluate bids/proposals Award contracts Implement

16

BANK REVIEW PROCESS

PRIOR REVIEW Procurement plan, institutional capacity Advertising and procedures Pre-qualification documents and evaluation results Bidding documents Bid evaluation reports Contract Contract Amendments

Procurement Supervision to ensure compliance Post Review

17

PROJECT EVALUATION

Implementation Completion Report Borrower/Bank responsibility Evaluations implementation performance of

parties including procurement

Audit Report by Independent Bank Department (OED)

Procurement Audit

18

PROJECT CYCLE PROCUREMENT

IDENTIFCATION Address unique procurement issues PREPARATION Procurement plan capacity assessment APPRAISAL Finalization of procurement plan; action

plan based on capacity assessment and technical assistance; institutional

arrangements NEGOTIATIONS Agreement on Procurement arrangements

in loan agreement IMPLEMENATION Procurement of goods, works

and services as per loan agreement EVALUATION Address procurement results in

implementation

19

RESPONSIBILITIES

BORROWER WORLD BANK

Identification (Joint)

Preparation (Borrower)

Appraisal (World Bank)

Negotiations (Joint)

Board Approval (World Bank)

Signing & Loan Effectiveness (Joint)

Implementation (Bor.) Supervision (WB)

Project Evaluation (Joint)