Procurement in World Bank-financed investment projects (IPF) is carried out by World Bank borrowers in accordance with a Procurement Framework that defines the regulations and principles that borrowers must follow.
We support major public sector investments in a variety of economic sectors including education, energy and natural resources, health, transportation and more. On average, World Bank borrowers carry out approximately 38,000 procurement transactions totaling $17 billion per year.
Procurement Framework
The World Bank’s Procurement Framework is designed to help Borrowers achieve value for money with integrity in delivering sustainable development.
The Framework promotes tailored procurement approaches that emphasize choice, quality, and value for public spending, while enabling adaptation to country contexts. It offers flexibility by helping client countries determine the best value for money to ensure quality outcomes and sustainability over the life of a project. By focusing on how the supply market can meet their needs, we support countries to develop procurement strategies that mitigate risks, contribute to the project's development objectives, and where possible, deliver additional environmental, social and economic benefits.
Within the Framework, there are four mandatory documents:
Policy: Procurement in Investment Project Financing (IPF) and Other Operational Procurement Matters
Directive: Procurement in IPF and Other Operational Procurement Matters
Procedure: Procurement in IPF and Other Operational Procurement Matters
Procurement Principles
The Procurement Framework is guided by seven core procurement principles: value for money, economy, integrity, fit for purpose, efficiency, transparency, and fairness. In supporting the core procurement principles, the Procurement Regulations provide Borrowers with a range of procurement approaches to choose from, giving them the flexibility to design the right approach to market for the project.
Partnering for Impact
As part of a broader global effort to work as a system for impact and scale, the World Bank works closely with multilateral development banks to harmonize their respective procurement policies and approaches – including responding to global development challenges such as the COVID-19 pandemic. A more coordinated approach ensures consistency for both borrowers and suppliers and allows us to scale our impact.
In the cases of development projects that are cofinanced, the World Bank has concluded Mutual Reliance Agreements with several MDBs, allowing full delegation of procurement procedures and oversight to the designated lead financier.
- ADB and World Bank Group Partner on Full Mutual Reliance Framework to Increase Development Impact
- MDBs to Harmonize Procurement Systems in Ukraine
- Joint statement of IFAD and World Bank on the signature of the Procurement Framework Agreement
- IDB, World Bank sign the first Framework Agreement for mutual reliance in procurement
Sustainable Procurement
Sustainable Public Procurement (SPP) helps organizations meet their needs for goods, services, works, and utilities in a way that achieves value for money on a whole lifecycle basis in terms of generating benefits not only to the organization, but also to society and the economy, while minimizing damage to the environment.