BRIEF

Thresholds and Legal Agreements in Procurement

June 7, 2016

 

Procurement Methods Thresholds
Monetary thresholds determine the most efficient method of procurement to be used and are set for each borrower country by the Regional Procurement Managers to maximize competition.
See more information on the current thresholds for each country.

Legal Agreements 
The Loan Agreements on this link are published when declared effective. Effectiveness may take more than three months from Board approval. 

1. Procurement of Goods, Works and Non-Consulting Services:

International Competitive Bidding (ICB)
Monetary thresholds are set for each borrowing country by the Regional Procurement Managers (RPMs) to maximize competition and efficiency of procurement. In setting up country-specific thresholds, RPMs usually rely on the analysis carried out as part of Country Procurement Assessment Reviews (CPARs) that includes foreign bidders’ interest to participate in domestic markets, conditions, size and depth of the market, capacity of the local industry, and the level of procurement risk.

The country-specific thresholds are different for Goods, Works and Non-consulting Services, depending on: (i) the types and quantities purchased by Government; (ii) the overall efficiency and economy that may stem from simplified procurement procedures; and (iii) market activity and availability.

2. Selection of Consulting Services:

Ceilings for Short Lists Comprising National Consultants Only
In accordance with the Consultant Guidelines, short lists may comprise entirely national consultants if:

(a) the estimated contract amount (including any applicable taxes) is below a certain monetary ceiling set up for each country, however, if foreign firms express interest, they should be considered; and

(b) such ceiling is stated in the legal (financing) agreement for a specific project.


Thresholds for Procurement Approaches and Methods