IFAD and the World Bank signed a Procurement Framework Memorandum of Understanding (MOU), agreeing on mutual reliance on each other’s project procurement frameworks and setting out efficient mechanisms for collaboration between the co-financiers. The agreement applies to public sector projects jointly co-financed by IFAD and the World Bank and delegates procurement-related tasks to the party designated as the Lead Co-Financier. The MOU ensures that both parties' fiduciary requirements are complied with in jointly co-funded projects with the lead financier carrying out day-to-day procurement supervision and approvals on behalf of both financiers.
The Procurement Framework Agreement between the World Bank and IFAD also underscores the growing trend of cooperation and mutual reliance among Multilateral Development Banks
The Procurement Framework Agreement builds on the close collaboration between the two institutions in the area of project procurement – a result of IFAD’s wide-ranging reform of its procurement policies and systems implemented since 2019. It is also a result of the extensive review and collaboration at the technical level that began with a full review of IFAD’s all-new standard bidding documents and procurement policies by the World Bank during IFAD's application for membership to the MDB’s Heads of Procurement working group in 2020.
This adherence to shared procurement practices reflects the shared commitment to further enhance the ongoing collaboration between IFAD and the World Bank on procurement fiduciary as well as capacity building aspects with the objective to facilitate preparation and delivery of jointly co-financed development projects in the shared countries of operation and build sustainable capacity beyond these projects.
The Procurement Framework Agreement between the World Bank and IFAD also underscores the growing trend of cooperation and mutual reliance among Multilateral Development Banks (MDBs), aligning with best practices within the MDB’s community. This trend is exemplified by how The World Bank has already stablished similar MOUs with ADB, IADB and CDB. Discussions to finalize similar MOUs with other entities are currently underway. This seeks to establish clear, consistent, and efficient procurement approaches, foster significant synergies between the co-financiers and substantially streamline project preparation and implementation for borrowing entities.
Priscilla Torres Rossel, Chief Project Procurement, International Fund for Agricultural Development (IFAD)
Enzo de Laurentiis, Chief Procurement Officer, World Bank