Islamic Development Bank

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Guiddim:s for Procurement of Goods and Works

 Table of Contents
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!2

Guidclin('~ Cor Procurement ofGuods and Works I

 D. PlUCf.'durcs ror liTO submiWon. opcnine. f\ ,.llllllion and awanl of ('OOlnK'I 22
2.33 Bid SlJbmis.~ior1 22
2.3.1 Tin"K;" imcn'll) b<:tweco bid invitation mid bid sobml!o>lOIt 23
235 BId op,:nin!! und l'\-alwlion proccdUI\':S 23
lJ6ClariliCllhon oralLL'lUlion ofbitb 2"
237 C'ootilk:nlinlily ofprocedl.ll'l'S 2"
2.38 EXamlllmion and comparison of bid, 2"
2.39 Morgllls uf rl\1r~l\1nce 26
2.40 ExlcnsiOll ofl'alidity of bids 26
2AI Poslqualrliclluon ofbiddrrs 27
2.42 Award Ofcolllmcl 27
2.43 Return of the bid sccuritic.<. 17
2,44 ReJl'Cl1oll ofpll bid~ and rc-bidding 28
3. Other methods or prncun!fIll'nl 29
3.1 Gelll'ffil prillCipb 29
3.2limiK'(\ inll"malional bidJing 29
3.J Nnlional compc1lli\'c bidding 29
3.4 Inlcm;uio!l.11 or notional ,hopping 30
35 Din.'C1 contrncting 3I
3.6 fore..: ilI."COUnl .J 2
),7 Community participation 32
4, Special procuI"Cment urrungemcnts J3
4,1 Usc: ofprocUl\1nWl11 agents ilrid l11aJUlgcmCI1I W111racto~ 33
4,21nspoc1l011 agcnL~ 33
43 I'mcurcm<.,,\ iuloans 10 financ~11 inlemK'tliruic'S J 3
4.4 ProcuI"ClTll."I1\uOOer BOT and similar pri\'31C5OClor IImlllgcmcnl>· J3
Anne:\ ,\Cllt("J!oryM\" projects 3S
\nnex B cat~ol') "8" projCCb J6
Anne, C J7
Rcvi~ by lOB ofprUCUfCmcnt Ikdsioru; J 7
SchlxJulin~ of procurement J 7
Prior review J1
All1cndmcnL" modil1cotions on:xrel1sion.~ 311
Pm.l review J9
Trnn~lmiolt~ J 9
·\nm:\ l) 40
Guidance 10 biddc~ .. 0
~ .. 0
Responsibility fur prot"Wl:mCOl 0
..
lDB's role 40
)nfonn.111l11l 011 bidding 40
Biddcr', role "0
Confid~nllll)jly . .. I
AClion by IDB .. 1
Dcbridil1J! 42

I
2. GlI\(kllll~s for Procur~lll~llt llfGoods and Works
 I. GENERAL PRINC IPLES
1.1 Purpo\c of thc Guidc lin (,!1
1 1.1 The following Guideline ... dchnc the rolicie~ and
procedure.. of the 1\l<lmic Dc\clopmcnt Bank ("IDS") for the
procurement of goods. works and related "'Cr.ICC~ (e,'(eluding
Consultunh ... en ices) for IDB financed prOJect;., \\hcthcr by
way of Ill.ln. ka ... mg. in<;tallmcnt ..ale. profit sharing. isti,na'u
or any Olher mode offimlncing used by [DB
I.I.::! Reference .. to "goods" and "works" III thc~e Guideline ..
include related ~niccs ~uch as Irnnsronation. m!-lurance,
installation. commi .."ionmg, training. and initIal maintenance_
"Goods" Includes commodlllC". 11m material. machinery,
cquipmcl1l.and induslna[ plant_ The prO\islons OflhN!GUldclin~
also apply ttl -;el"\ iccs which are bid and contracted for on the
ba'ii .. of rcrf(lmmnCC of a measurable phY~If.:al output. su(:h as
drillmg. mappmg. and similar operallons. Thesc Guidelines
do not apply 10 ("on~ultants' sen"ices. ttl whidl the Guidelines
for Ihe l.se or Consultants under hlamu.: Oe\c!opmelll Bank
Financing uppl).
I 1.:\ The: Guiddine:s assist Ii) Bcncfkiane:s of IDB finan(:etJ
proJc(:\s to obtalll Ihe: bcst p()ssiblc qual it)' ...en ices from
bidder.-. and 10110 so \\ IIh due aUention 10 the four b.'l'lIC priocirlL~
of procurement I,.'(onomy. efficiency. fair opportunity for eli-
gible bidder.. and tmnsparency of the biddin(.! process. and (ii)
Bidders 10 prep:uc bids lind exccute contracts Ih'l1 mect the
requirements of IDB and Ihe BcncliciilTY for high quality
<oeniccs. If m a project financed by lOB. certam goods and
\\orh arc hnilnCed by the Beneficial)' or by other "iourcCl>. IDB
n.:scn cs the n(.!ht 10 ensure tlul \he.,c 'iI.'n KCS arc of ~Iislaclory
qualil~ .
1.2 Rdalionship lH..· h\t~t'n lOB, Ihe Beneficial') lind
Pro\ idcr$ of GO(Jds and \\ or ......
The I-mall!.:ing Agreement go\cm~ the legal obligations
between the Beneficiary and IDB regarding procun.:ment
financed by IDll 'Jo party Other than the I'3nil'S to the Financing
Agreement shall deriH-' any rights thcrefrom or have any claim
10 the funds prll\ idcd by IDB The bidding dflcument" is .. ued by
the lkndiclaJ) and thcC('lfltrXt Signed OC1\\1,.'\.'fl the U...'1'k.-fkialy and the
prO\- idcr.-. of goOO~ and "ork!. dc:line the right!> and obligations
of the Rencfki,ll) and ...ald prO\- iclt:~ For Ica ... mg, in.. tallment
..... Ie and ."II"na'a mode ... of tinancmg. the C(lntl'i.lCis relating to
tbe components financed by the IDB shall ekarly mdlcatc th:lt the

I
(Iutdclincs for Procure ment of (ioo d s and \ \ o rk s , ]
 Bcndkiary I~ acting a~ IDB agent in the <;aid c(lntrac!.\,.
1.3 Rc\pon\ibililic'l or Ihe Ocnrhdar)
Inc ullimate r~''''l"KlIl~ibilily of th!! clli..'Cti\!! and economk
pnKurement (If good .. and \\ lIrk~ and the successful completion
of the pwjcCb rests with the Ikndiciary of IDB financing.
IA Re,pon\ibilitie\ or II)B
IDB i .. rc .. pun~lblc lor making the dishur ..ement in accordance
\\ ilh the tenm and conditions of the financing Agreement and
the contmct. provided that goods and \\orks arc those defined in
the Financing Agreement and arc procured in accordance with
lhe prlKcdure~ dcfincd therein.
1.5 Procun'mcnt \lelhodll
IDB nornlall)" rcquire~ the Bencficlarics of its financing to
uhtain good.. and works through Internallonal Compelili\l!
Bidding. a~ mdkaloo in Seelion 2. in accordance with its
eligibililY rules (paragraph I 7). IIm\c\t.:r. dcrending. on the
pmJc..:t \ requircl1lent~. other l1Iethod~ of procurement (Section
3) ma)" hc allowed as long as thc principles of cconomy and
efficiency referred tn in paragraph I I arc respcclcd.
1.6 .\I}plicahilit~ orlhl' Guidclinc\
Thc pnKedures de~cribed in these Guideltnl's apply to all
conlracts I{lr gl..... Kls and works financed in "hole or in pan by
lOll [f panlally financed by !D1l. thc Bendiclary may u,e
othcr procurcmcnl procedures. which should be SIltlsfac.:IOI)'
10 lOB. ~o that the prOject \\ III be carricd OUI dliciently and
the guods and work~ procured (a) arc of satisfactory quality
and in acc\lrdalll.:C with the requirclllent~ of Ihc entire project
(bl will be deli\l~red timdy and COnlplclcl)"; and (c) arc priced
compcliti\ ely to eni>urc the ceoncunlc and tinanci;11 \ iability of
the project. In exceplional case.. like Pl)~l conflict situations or
naturJI di ..a.stcrs. i>pccilic procurement lIrTangcmenls could he
used to lacillllllc fllSI utiliauion of allOCllk-d fundi.
1.7 Higihilil)
I 7.1 It i .. a fundamentlll policy or lOll Ihat lhc bidding
docunll'nts shall uncquivocally "tipulalc that thc prO\ ider.. 01"
gUtKl~ and works. andlhclr as .. o..;iate~ and subcontr.lCIOrs ... hall
be III ~trict compliance with the Boycott Regulatillns of Ihc
Organi.lation of the Islamic Confercncc. the League of Arab
Statcs lind Ihc AfrICan Linion. Thc fiendicla!)· shall ad\ i~c
inlcndlllg contractor.. and ~1I]l]llicn. thut bids will only be
c(m~ldercd fmlll contractors and SUppliCN \\ 1m arc 110t ~ubjcct
10 said Boycott Regulations. Biddcrs. throu~h an agcnt in the
\1cmbcr CllUlllrics conccmed Ot through llllC of the \Icmbcr
Cmmlrics' hnbas"les in thc country ofllngmllflhc hiddcr. may
8cljuirc a cenilicatc which ccnilics Ihat thc hiddcr I .. not black·
listed
1.7.2 I·m lhc buycutt reljUlrcmcnl, thc dlgibilily of a
supphcr ur Clmtrdctur will he dctcnnull-d dunng the c'aluatlon
process. In ca~cs "here supplicrs or cuntraetors withhold
in lonnatiull !O evade disquali lication on account of Ihe boycott
requirement. the Bcneficiary will have the right 10 cancel the
contract at any time and also to penalize such parties and claim
compensation for losses incurred. as a consequence thereof. by
the Bencficiary and IDB. lOB reserves the right not 10 honor
any contmct if the supplier or contractor involved is found to be
subject to the boycott requirement.
1.7.3 For the purpose of these Guidelines. a Member Country
contmclor or supplier is defined as follows:
I. it is registen.:d or otherwise organized in a Member Country
of the lOB;
2. its principal place ofbusine!OS is located in a Member COUlltry
of the IDB;
3. it is more than 50% beneficially owned by II firm or fimls
in one or more Member Countries (which finn or finns must
also qualify as to nationality) undior citizens of such Member
Countries;
4. not h:.'SS than SO'%.. of all persons who will perlonn services
under the contntcl. whether employed directly or by a subcontruetol".
arc natiOnals of I DB Member Coulllrics; (Illd
5. the mojority of rnanagerial and professional stalT nrc nationals of
the Beneficial), Memocr Country or of other Member Coumrics.
1.7.4 For the purpose of Lhcsc Guidclmes. a domestic finn of a
Member Country is defined as follows:
I. it is rcgisten.:d or incorporutcd in the Bcneficiary Member
Country;
~. il." principal place of business is locnled m the Beneficiary
Member Country:
3. il is more than 50'h. bencficially o .... ncd by n finn or finn~
in the BClieficiary Mcmber Country (which firm or fimiS mUSt
nlso qualify as to nationality) andior eilizlo:ns of such Member
Country;
-I. not less than 80%. of the persons who will pcrfonu
sc["\iccs under the contract in the Beneficiary Member Counny.
\\hethercmp[oyeddirectlyorbyasubcnntraclur,arcnationa]softhc
BencficiDry Member Country; Dnd
5. the majority of managerial lUld profcs:.iollal statr are nationals
of the Beneficiary Member Country.
1.7.5 Govemment-owncd enterprises in the Bcneficiary's country
may participate only iflhcy can establish til:!! they:
I. nre legally and financially autonomous;
2. opcmtc undcr commercial law, and
3. an.: not dependcnt on the Beneficial} \ Agency n:sponsib1c for
contmcling.
1.7.6 A supplier or contrdclor declared ineligible in accordancc
wilh sub-paragraph (i\") of pamgmph I 13 regarding fraud and
corruption shall be ineligible for an lOB financed contract during the
period oflimc dctennined by 108.

GUldcllllCS for Procurement of Goods and Works I 5

 1.8 Conflict of Inlerest
1.8.1 [I' a supplier or contractor (or the finn with which it
is affiliated) combines the functions of manufacturer or
contractor with those of consultant or if a supplier;
manufilcturcr or conlractor contbines Its services with a design
office on'cring services as a consultant. IDB requires that its
bid shall include relevant infonnation on such relationship
along with 11 stafemell! to the e[Tcet that it shall limit its role to
that of supplier or Contractol', and that neither the firm !lor ils
associates aHiliates shall participate in the project in any
other capacity. Sueh finns shall be disqualified from providing
consulling services for the same project.
1.8.2 This prm:ision does not apply to a combination of finns
(suppliers, contractors and consultants) which together perfonn
a turnkey or design and build comract.
1.9 DCHlopml.'nt and ljsc of Domestic Suppliers and
Contractors
To promolc lhe indllstrial activity of developing countries. il is
the policy of IDB to encouragc the participation of domestic
suppliers and contractors in projects for which they are qualified
and judged capable of perfonning the p:trticulur 'Services requiretl,
either alone or in association with foreign firms. When domestic
and foreign finns form ·'Joint Ventures" or associate thcmsehes
to supplement particular services. IDB requires that the roles
and responsibilities of each party shall be clearly defined. The
Icadct'Ship of the joint venture or the association and the ultimate
responsibility for the supply oflhe goods or the completion of the
works shall be stipulated in the documents concerned.
I . to A'isociation of Firms (Joinl Ventures find Sub ~
conlracting)
1.10.1 FinllS may conclude association agreements either for
the long tcnn or for a specific assignment. Such associalions
may take different IOnns and constitute (i) a Joint Vcntl..lre. whereby
all members arc jointly and sevel1llly liable lor tbe enlirc
contract. find alllllcmbers arc required to sign the contract with
the client; or. (ii) an inlernledintc 10r111 of association, where the
contract is divided in individual lots assigned 10 each member
of thc group individutl!!y, whereby each member only signs a
contract with Ihe client for the lot that is assigned to it. excepl
the lead-firm. which remains severally liable for all members
of the group and signs the contract with the client for all goods
or work~ to be pro\'ided: or (iii) a Subcontracting Arrangement,
whereby the kad-finn assumes complete responsibility for and
coordination of the works or supplies and sign!> the contract
with the client. while the subcontractor only \."\ecutcs part of
the contract assigncd to it under specific temlS of reference. and
signs a subcontract with the lead-firm only.
J. I0.2 In case of ICB, association or nOll member countries
llnns with member countries [inns is eneollraged.
1.10.3 In case of leB/MC, association of non Illcmber countries
firms with member countries fimlS ntay be accepted. However,
the Icad MC finn is expected to perfonn at least 50~'o of the
required assignments.
1.10.4 [n case of National Competitive Bidding. association of
domestic finns with a non-domestic finn is :Iccepted. whereby
the domestic fiml is expected to perform at least 50% of the
rcquired assignments.
Lit Rc,icn by lOB and IDBA'lsiStiIllCC
I. [1.1 The uran bidding documents shnll be submitted to IDB
allowing sufficient time for its review lind comments and shall
be issued for bidding only after obtaining apprO\al of IDB.
1.11.2 While it is thc Beneficiary's responsibility to carry out al1
SICpS to procure goods and works, IDB reviews the adequacy of
the procurement procedure. documents. bid evaluation recom-
mendations and contmcts 10 satisfY itself Ihat the procurement
procedure is carried OUi in accord:ll1ce with the provisions of
the Fim.lllcingAgreement l . The slatl"of lOB remain available to
assisl1hc Beneficiary at all stages ofthc procurcmcnt proccdure
in order to ensurt: that the required scope of supplies or works i~
fully covered and that the procedure is suitably applied.
1.11.3 The proposal of the method of procurement and
corresponding procedures. as well as the categories of good~
and works and the packages to which they apply. shall be
discussed and agrecd upon at the time of project appraisal. and
specified in the Financing Agreement.
1, 12 1\1i\procurCmenl
lOB docs 110t finance expenditures for goods and works
which have not been procured in accordance with the agreed
procedures III the Financing Agrccmcnt or if the lenns and
condition~ of the conlract are not satisfactory to IDB. and it is
the policy of lOB to cancel that portion of the funds allocated \0
the goods and works that havc been misrrocurcd.
1.13 Fraud and Corruption
1.13.1 II is IDB's policy 10 require Beneficiaries as well as
bidders/suppliers/contractors under IDB-fimmced contracts, 10
observe the highest standard of ethICS during the procurement
and cxecution or such contracts. In pursullnce of this policy,
IDB .
i. defines. for Ihe purposes of this pro\ Ision, the tenns SCI forth
below as follow s:
• corrupt practice" mcans the ofli!ring. giving, reech'ing,
or soliciting of anything of value to influencc !.he action of
a public u(fic131 til the procurement process or in contract
execution: lind:

Guidelincs for Procurement of Goods and Works

 • "fraudulent practice" mc:;]ns a 1l1l',represcntation of
fact ... in order to influencc a procun:mc:nt proce\" or the
execution ofa contr.:aCIIO Ihe dctri ment ofthe Beneficiary. and
Includc... COUU'L\C practLce... among hrdders (pnor to or
after 'ubrms~lOn of pror)(hilh) dc:srgnoo to c)tabJish bid
prjl:es at .lrIrlir.:ral, non-I:ompetrli\ e Jc\ el, anJ to deprive the
Bendiciary of the benefit... of frt."e il1ld llpctll:Ompctition:
LI. \\ ill rcjl."et a proJlOsal fur award if it determines thm the
bidder recommended tor a\\nrd has eng:aged in corrupt
or frmHJulent practices in compcting for the contract in
que ... lion:
iii. on the C\ idem;c of corrupt or f.... udulent practic.::s by
the Benclir.:iary or bidder. uppliers or contractors - in the
procurement or the eXl.'Cutron of thc conlrdCI ...... 11 ask the
Rencliciary country to take ilpprl1priBte ar.:tion to n~...:ind
the contract. failing: \\hieh IDB \\111 cimcd thc Jlortion or ib
finanl:mg For this pUl'p<l\e. IDB \\ LII requiTe thil\ the
biddmg documents embody a ...1lItement 10 this eneet, and \\ ill
alsll require thill. in contrar.:ls linanl:ed by lDll. a provision be
induded thilt gi\C... the Bcneficinry country the right to rescind
the contr.Kt in the ...e circumstances;
i,_ will declare a finn ineitglhle. either mddinLtely or fi.lr a
... taled perrod of time. to be a\\arded anIDB·tin,mccJ conl ....et
if II al an~ tim...: deh:nnine ... that Ihe firm ha~ engaged in corrupt
or fraudulent practIce... in competing fill'. or 111 execuling. an
IOB~financed r.:onlrac\; and
\. \\11] ha\e Ihe right 10 reqUIre thaI. 111 nlOtracts financed
by 1D1l. a pmvhron be mduded requIring ... upplicfS anJ
I:Untral.:lllfS to Pl=nnit lOB to insJlCcI their accounb and
record ... rclating to the pt:rfoml<Ulce of Ihe CllntrJct and to h<l\e
them audited hy auditors appointed by lOB.
1.13.2 WLth the ... pccific agreement of IDB. a Beneli...:iary
coont!) lTlay indude in the bidding documellt I~)r a large
contract financctl b~ lOB. a requirement that the fiupplier or
contmchlr undenako: a cmnmLtmenl 10 ol;\...e .... e. 111 competmg
lor and executing a conlmct., the cuunlf)·s la\\ 5 agamst fraud
and corruplton (lllciud1l1g bnbery) a... h!ltoo m the brdJmg
dt)(;ulllcnt IDB will accept the imrodur.:lr(ln uf such a
requirement.
1.I.t (onfidcfllililit) of Procl'durl'li
Alier Ihl' llpcnin~ of bId,. infomlatilln relating tll the
cxamllliltLon. r.:lanlicall<ln anJ c,uluallllllllfbld... and ft.'t:ommen-
dation ... cOllcemrng awards shall nOI be dl,cllI...ed to ththe "ho
ha'e ~ubmilled bilk or olher pcNlns nlll onicrall~ concerned
"lIh thL .. pru...:...:durc:. unlilthe ,mard 01 wnlmd h n{)(tlied 10 Ihe
~ueccs~lul tlldder

A~ 1\ cuml'lc. SlM;h an undatakm~ nugh! re>d ,.., fi,lIuw. ··\l.e IJIIdcnakc Ilw.
III ~YIIllJlC!l"i lOr
tantl. If tho: a\\ow iii mu.lc k' 11-;" In~) the: abu\c CUIllnn
\lC ",,11 ub5cr.c Ib: 13\\, "IIi\IIW fraud antl cUfru!"'llon 11\ In":c In !hr.' CtlUl"llr) of tIw:
Ik'lll,:iil"W)- M..,h Ia.... , ha\C beer! lI'<ok'll III the bKkllll8 &'l.'UlT'l.'1lts l!1rthls IXlIltrolCt
2. INTERNATIONAL COMPETITIVE BIDDING
A. Principles of International Competitive
Bidding (ICB)
2.1 Purpose and Scope of ICB and ICB/Me
2.1.1 The purpose of International Competitive Bidding (ICB).
whether through "open" ICB or ICB limited to Member
CounTries (ICB/Me). is to provide the Beneficiary with a wide
runge of choices in selecting the best bid from competing
suppliers/contractors. and to give 311 prospective bidders from
eligible source countries adequate. fair and equal opportunity
to bid for the goods and works, \\hich arc being procured under
IDB financing.
2.1.2 Since lOB encollrages the development of industries
and engineering organizations in ils Member Countries. it
considers Ihat, as H matter of priority, goods and works il is
financing should be procured. to the extcnt possible, from
its 1l1~mb~r countries. The Ice open to nOll member country
fi11l1~ will, however. be allowed for the procuremcnt of goods
and works for which it is consid~r~d that Me do not have yet
enough competent companies able \() provide them in all regions
of its membership. At present these goods and works arc those
described III Annex 8. The Annex will be revised from time to
tillle as thc competence orthe Me finns will be expanded.
2,1.3 The Ice open 10 non member country fimls may also be
acceptable for the procllrement of goods and works which do
110\ appear in the Annex B but the pre\ailing rn;lTkct conditions
in the country/region of the project will mllke it unlikely that
enough acceptable proposals will be received from h1C firms.
2.1.4 To achieve the objectives of ICB und ICBIMe. IDB
requires Beneficiaries to observe certain guidelines in
preparing bidding and contract documents and \0 follow certain
procedun..~ in advertising bid imitations and in receiving.
opening and evaluating bids. These procedures are described in
the following paragraphs.
2.2 Proct!durc for Notification and\d\'Crtising
2.2.1 It is in the interest of the Bcncficiury to get the best
qualif1ed bidders for a given project. Adequate notification
a!1(1 advertisement should. Ulercforc, be made so that potential
bidd~rs arc inronned in a timely mmmcr of the op]lOrtunity 10 bid.
2.2.2 Notific<ttiol1 and Ad\"cl1ising shall be done in two
Sleps. When the Financing Agreelll~nt for a project is signed
bt'twccn IDB and the Beneficiary.lhe Beneficiary shall launch a
General Procurement !'>JO\ic~ (GPN). Where it eoncems feR the
GPN shall be published in an IfllematlOnal newspaper of wide
circulation. This shall be done alle(lsl60 days bdorc the fonnal
invitation to hiu IS issued to giv~ suffici~nt lime for potential
bluders 10 obtain Information and prepare lheillsehes.

(illtdcllll~'i for P!{)CUr~I11~111 nf (Iunds and \\ nrks l)

Where it concems procuremcm under JeB/Me the GPN may be
published on the lOB Website. In addition. copics of the Notice
arc sent to Embussies, Consulates and local representatives of
IDB's Member Countries. The Notice shall contain infonnation
conceming the Beneficiary, the scope and purpose of the project
and the amount, the name, telephone or fax number and address
of the Beneticiary or the Beneficiary's Agency responsible for
the procurement. and the website and c-l11ail address. ifavailablc. If
known, the scheduled date for availability ofprequulifiealioll or
bidding documents shall also be indicatcd.
2.2.3 Subscquently, to enable prospective bidders to obtain
bidding documents and prepare bids, Beneficiaries sh311 is-
sue a Specific Procurement Notice (SPN) to advertise the
.. In .... itations to Bid" when the bidding documents are available
for interested bidders, in the same manner as for the GPN as
described in paragraph 2.2.2 above. Beneficiaries may also
advenise in well-known technical magn:dnes, newspapers, and
trade publications of wide international circulation. The SPN
shall indicate where the bidding doculllents can be obtained and
provide more detailed infonmtiOI1 on the scope of the goods
and works and the time when they arc needed. In addition,
copies of the SPN arc selll to Embassies, Consulates and local
representatives orlOB's Member Countries.
2.2.4 In the selcction of news media, the international aspect
of lOB is important and it shall be assured that the magazines,
newspapers, and other news media arc selected in all the three
working languages of lOB, i.c. Arabic. English, and French.
Invitation to bid should be advertised in at least one newspaper
of general circulation in the Beneficiary country where it must
appear at least twice on two non consecutive days within a span
of ten (10) days.
2.3 Aduncl' Contracting
In certain circumstances, in order to accelerate project imple-
menlation or in emergencies. the Beneficiary may, with IDB's
prior agreement, proceed with the initial steps of procurement
before signature oflhe FinaneingAgrccmenl. This procedure is
calkd advance contracting. In such cuses, the Beneficiary shull
foHow thc~c Guidelines and lOB will apply its normal review
proccdurt ' . The Beneficiary undertakes such ndvance contract-
ing at its own risk and any concurrence by IDB with thc proce-
dures or proposal for award does not commit lOB to proyide the
finoncing lor the project in question .
2A R('lroaclhe Financing
2.4.1 IDB docs not nonnally financc ilny expenditurc
incuITed prior to the approval of the project.lIowcycr, in very
exceptional r.:ircumstanccs, this might be considered as per
Guidelines. This procedure is called Retroactive Financing.

'Annex C
Retrooctjvc Financing should normally be restricted to expenditures
incurred and p8id lor by thc Bcneficiary 6 months before the
expected d8le of signing the Financing Agn.."'Cnlcnt. However. in
cases where the project objectivl."S. dcsign 8nd implementation
8n1lngements have been worked out, this period may be extended
up (Q 12 months before signing the FinancingAgrecment.
2.4.2 Rctro.1ctivc Financing shall not nommlly exceed l(}Olo of the
total project cost. Only in case of an cmergcnc)\ lOB may consider
Retroactive Fin8ncing of up to 20% for cxpcndilUres incurred
within 4 months prior to the expected date of signing the Financing
Agreement.
2.5 l,\ ~t1lgc Biddjng~
Detailed engineering of the works or goods to be provided.
including the prcpamtion of technical specifications and other bidding
documents. nonnally precede the invitation to bid for large
contrncts. Ilowever. in the case of a turnkey COnlmet or contrncts
for large complcx industrial projccts or works or similar complex
contracts of a spccial nattlre. it may be inappropriah" or undesirnble
to prepare the technical specifications in acl\ancc. In such a case,
a two-step procedure shall be neccssary to first invite unprieed
technical proposnls on the basis of a conceptual design or
perfornulIlce specifications. on which the Beneficiary may
ask tcchniC:11 clarifications and require necessary adjustments.
Subst."'l/ucntly. the Beneficiary. while safeguarding U1C confidentiality
of the earlier h..'Chnical proposals. shall isslle the amended bidding
documents and request the submission of final !echniC1Jl proposals
with priced bids.
2.6 Prc<lulIlificalion of Bidders
2.6.1 lOB rcquires the use of fornl:!l prcqualifieation tor large or
complex eontrael<;. supply contraCl<; of spcciaillcd equipment
and machinery or turnkey contracts, to ensure. in advance of
bidding. thm only contrACtors with a relevant IL'"Chnical e.xpertise and
adequ.1te Il!SOtirces for implementing the Contr..lC\ \I, ill bid. nle
Financing Agn.'cmem with lOB will speeil)! whether pt'lX{Wllification
is rcquirctlm respect of particular contracts. Prequalification shall
be bast:d entirely upon the ability of the interested finn. provided
it is not olhelwisc disqualified. to perloon U1C particular work
smisfnctorily. taking illlo aCCOUnl inter nlia: (i) experiencc and past
perfomlance on similnr eontnu.:\s; (ii) ClIlXlbilities with respect to
personnel, cqUlpment and plant, and manufacturing facilities: (iii)
current COlllmitment of works under execution and progress of
work: and (h) financial position during the p::asl3 to 5 years.

'A~ opp.Jlo<."tllll 1"'lH1al!C hlddmg.. wlIl !o~'fI~If"(: lr;IIhp.lrroo.:). rDEl docs IlOl OC~cpI
llie Iwa- or lhn.'e~n\"eklJX' ,)'l~m In \\lu~h blll\l~", nil: n....loln.'<I !O submit >t.'Jl:II"llIC
Illl:llitiC.1lillll illI(tl~"\:hlll~"t prnposat, "nd pric~...r hid, dl lhr ,,"n~ lime. bUI \\tl<:rI: lh~
4l1alitkullI)rI 1I11d l~dlTH~'ltl'<'I'p..,,;at~ n,..~ !'I"'n<~t lind c\atll.1l<~lliN. llI1U lh~ pric...d
bills Illl: npcnc() ~ml c,,,lu:lled al1e,·rh.ll.

Guidelines for Procurcment ol'Good:o. and Works I II

2.6.2 TI1C prcqualification .;;hall be notificd and advenised as
described in paragraphs 2.2 above. The scope of works,
abbrcviated spccifications. and a clear stall.'THem of the
requirements for qualification should be sent to ali fimu; (not
othcnviliC disqualified) desiring to be consido..'fCd for prequalifica·
tion. When the pn.-qualification is employed. :III finns which arc
found 10 be qualificd shall Ix pcmlilled to bid. TIle report on the
prc-qualification process shall be submil100 to IDB for approval of
the final list of prequalified contractors. 111e Bencfieimy shall then
infoml all applicants ofthc results of the prcqualificalion. As soon as
prcqualifieation is completed. the bidding documents shall be made
available to UlC qualified ProslX'Clive bidders.
2.6.3 Where a margin of preference is allowed for Member
Countries finns. the)' should be required to prequaJifY in order to
detcnnine their eligibility for such a preference.
2.7 Type and Size of Contracis in Bidding Documents
2.7.1 The bidding dOCumenL'i shall cle<lrly state the type ofeonlraet
to be ClltCfL-tl into and contain the <Ippropriate proposed cOntract
provisions. The 11105t common types of contrJcts provide for pay-
ments on the basis ofa lump sum. unit prices (for work perfonned
or goods supplied), or a combinalion thereof.
2.7.2 Contracts based principally on Ihe reirnbur.-;cment ofaClual
cost plus fixed lee arc nonnally not aeccptable to lOB. except in
sjX'Cial conditions (such as conditions of high risk or where costs
cannot be c.1etennined in advance with sufficient accuracy) and ....lth
the explicit prior approval of lOB. Such contract>; shall include
appropriate inccntivcs 10 limit COSIs_
2.7.3 The scope of individual COntracts will depend on the size,
nalurc and local iOn of the project. For hlrgc projects requiring a
variety of works and equipment, it is gcncrulJy rrefcmblc to award
sepamtecontmelS forcivil works and fOrlhe supply and instal lalion of
different major items of plam and equipment
2.7.4 On Ihe oUler hand for a project TI.'quinng slrrrilar but
separate civil works or items ofeqUIpment and machinery, bieb may
be invitl..'(! under alternative contmct options that would attmct the
intcf('St of both smaller and larger timls. Contmctors ormanulactuT-
ers I suppliers, small and large. should be nllowed to bid individual
contracts or for a group ofsimilareontmcts at their option. All bids
and combination of bids shall be received by the SlIme dcadlineand
opened and evaluated simultaneously so as to dctenlline the bid
or combin:ltioll of bids offering the lowe~t evaluated cost for the
Beneficiary.
2.7.5 In certain cascs. e.g.. when sIX-'Cial rroces.sc.~ or closely
inte&'TIItoo munulacturing orwor16 of a speci,11 nature are involved.
IDB may accept or require a turnkey contract under which the
design. enginl..'Cring, the supply and installation of l..'quipmenL and
eonstnictioll of a complete industrial plant or works arc provided
through a single contract. Alternatively, the Beneficiary may issue
bids lor a single responsibility contract under which all the goods
and works arc prc)\ick.'<l e\Ct'pt the dc.o;ign and engif)t.'\,'ling. the
TCSfXlfNbility for which would n.'mam "Ith the 8cncticiary
OL... i~trl. build and managCfTk,:nt c(lfttroctmg contrncb arc also
ll~l-cptable v.ht-re appropri.;lle.

8. .. \.'K'JItiaJ. h.:mcnt of the Riddins;: ()ocumcnh

2.8 (onh'nh of.he BiddinJ! OocUIIlI nh
2.S.1 The bidding. docWllCl1b ,hall lunll~h all the mfomlati{m
nlXC';soU) for a bidder to prepal\' a tender !br the g.ood'i and
scr. ic,-'S to be supplied While the detail, and complexity of th ..-sc
dlICumcnls \\ill \ary "jth the ~i.le and n.IlUI\' of the prop(N:d
conl1'.K"t.lhl.,)- hould normally include: il1\ lI.alion 1{ll;Iid: in,lruc1iom.
10 hiddt"T"'; form of bid; fonn ofcomrJC\; eondillon.., ofcontract. both
!:.,:nend alld !>fl'.""Clil/: ledmicaJ ~"\:lticallOns: hilh of quanliliL'S and
dr.l\\ing"; ..chedulc of pricc .. : ddl\cl) tUIlC or M:hcdule of
complelion; and nCCL'S..'ill)· append ICC.... lOduding fOrllt, for
pn)l~mna bid txlll(.b. perfOITlt.Uk.'<: !!uamnlL'C and ad\anec lXl}lTlc!nt
guarnnlee.
2.8.2 11,,' bilSI" luI' bid C\aIUaIHIII and -.ckCIl\ln of the 10\\e..1
C\"Uh.101tcd tlld shall be cJe-.lrly outlinL'tI in Ihe in~lnlclion .. W
bidders and Ilr the "PCClficalions. II ,I ICc i .. ch;trg..oJ for the hidding
&."lClUlll."1lh. it ..hall be rea.'~lI\ablc and n.:fkd onl~ 1M co..t of thcir
prillling and deli, cry 10 pn~f'l.·dl' C hlJd..'"r.'. and ..hall not be so
high a." II) dl'>Ci"ltlrnge qualifkd biddc"
:UU Ri&.ling docuJIlI.'ltl'> ..hall be ~uhmII1L'tIto IDl~ for n.,\,JI.'W and
dcamncc betl.lfl! i ..... uancc \0 bir.k:k.-n.
JK4 lkndiclan..... shall usc the appropnme SI,mdan! Bidding
Dl.lCumcnl.. ISBrh) Is:.lll.-d by 1013 \\ltl1 minimum d1.1ng ..'li•
•ICCcplilhlc 111mB. a.<.; 01.'(;1.'....11)' to ad,jr\.'Ss country and
1'1\).11.\:1 ~pl'\:ilic j,sucs. Any .. uch chang..""; "hall he introduced only
Ihrou~ bid or contract data shc.~l... tlr thruugh 'JlI.'\:ml condition.. uf
t:(.mtmcl" and Ikll b) mtroductng chaJl!-!.., ill the stillldard
""rdin8tlftl~SRn.. \\ hcrcnordc ... ant standanJ biddingdocuml.'Ilb
h;J, c been issu,-oJ. the Benctkl81Y .Jlall u-< other mtcmallonally
I\.,\:Opil.l'-'lI bllkiing docurncnL.. and wlkliuun... III contract and
contmct f(lnns aCI.-cptable 10 IDH
1.9 Rl'fl rmct' to 1U8
When the C{lnlr.'\ct t ... 10 be hnanccd v.lmlly ur partl~ \:Iy !DB, i\ "
nl.'C ....."ilI) [II S'... e rdcn.',lf.:c to IDB ill the blddinH docunk.'flt', along
th ..- li.lll1," ml,\ Im..-.;'
'(l'\amc ur thc &"1lclie131")). has rt.'("CI\l-d (Ill" III approprialc e,I,,"-'S
ha.. <Jpph..-d fori. linancing front the blamil' /lc\dopnll."1lt Bank
III \afl<m.. CUm:ncl..... (."qui\alcnl 10 [0 t<'"-anJ... I~ <:(,",1 of Io;unc <.r
projcLI) ..tnd mtend:» 10 aprl~ part of the rro<.'ecd~ of Ihi ..

<. Idol" GI:II1y dlleI no! perf.., dIr \1;00.

>I\II1IC~ <lUI and ,~ rUt uthtt ( <JII1rKI...,... talung on tJKo
JR...."'", It,,11I 400 n.Jc !<~ pIll(.lIualil'< ,>m'C'nIC" ..
! nd" perf\lI"I"'nIIIICC.l
l on..Jru..1J.;)II \I.III:IJ,."<'I"" II (,""'11lW11 I... or II Ul< H,:nch~J;II'>. :It... 001
~~ "11,,,1\;11 IlIik! (II hfl:lD..n! I1v mil, UK' 'iCf\ K:~ "t the 1flliI1I"II"n ~I
h""k1hel"",,,If\-dundo..,t1w;,<,ull " 1l1("L,,~!n...: I

Guidcltllc~ for Procurement or Goods and Works I

fin.3m;m~ to the cOIltr3l:t(S} for \\ hich this in'>il.3lion to bid is issued.
Di .. bur-.cmcntllf funili. by lOB \\ ill be .. ubJCt:t In nil f"C!,pecu. to the
'emh and condition.., of Ihe r Inaneing AsrecmcnL mduding the
GUidclilK~ fOf Pnx.:urcl1ll..··nt unJ ...'f IDB financmg. hc ...-pt ~ IDB
may s(ll-'Cjlil:alJy ()th~'n\ ISC agre,:. no part) other than (the: name of
&-ncfkiary) sl1:lll dom\ e any rights frum the 1'lIlanclIlg :\grecrTk."'"nl
or ha\ c ilny dam1 to tts proceed.....
2.10 Lan~uIIgc lind Interpretation
Prcqualificalion and Bidding documenL.. Ii.lr Ica and ICR·Me
shall be prcpmw in onc oflhe \\orking languages of IDB (Arabic,
[ngli:.h. or F~h). Docurnenh may be pl\.j13rcd in local language
as \\dl. in t~ l:ilSC of local biddmg ooly. but the Bank should
be supplied \\It.l1 a ccrtified tramlati(lll of the same in one of the
working languagcs of the Bank
2. 11 ( IlIril~ of Bidding [)(KUOll'nl
::!.II I Btddmg document!> and !>po..",(;lhc;lllon~ shall be "onted
in sUl:h a In::lnner so as 10 pennil and I.'TK:oumgc tnl ...'Tl1ation.tl
compelil!\e biddmg. and shall sct lorth. n., de.lrly and prcci~[y
as JX*"iblc. the work to be 3c.;ompltshed. the 1:)00(.1:; .Uld scnitcs
to be ... upphcd. the place 01" deli\ cry (lr m...lallnllon, \\ arrant)" and
maintenance n."'qulfClncnb, anJ any other pertment toom and
cond,tio.",
In addItion, the bidding tkx:unll.'f1l, .... here appropriate. shall
ddine the IN. ~tandanb and. melho(b th.,t \\ III be utiJi.lOO to judge
conh.lm1Lt~ \\ Ith the origmal equipment sjlo.."'(;ilir.:alion'), qual it)" of
.... arks and dcJi\el) t.m.::. Dnl\\ings ,hall be consIstent wilh the
text of the t..'Chnil.ill "po..'Cifir.:alion.. iUld, \~herc appropriate, an
(lnlerofpn:f~rcllce bo..'hvCt."'lh~ 1\\0 ...Iwll be spo..'Clfl~d in the bitldmg
Uoc.:umcl1h
2.11.2 The d!)ClUrk.'f1I......hall clearly spell out \ol) nil fal:lor.,
including rril:c. '" hich will be lilken into Oh:l:{lUnt 111 C\ alui\ling and
companng bid>.; (b) the e\aluali{lI1 l.'fIt~'ria_ tncluding 00\\ thc.-sc
lacto,.... "ill be quantlfil.'(} (If OIht.1"'I~ C\aluakd (f1lo.'tl)l,xb, lemh
and COndlll{lfh of bid C\aluntion): and Ie) If altem,lIi\ e bitb. ba......-J
on alt..'fI"IllL\e d...~ign . mato.-rial~ I:Oll1p[elllln Sl:hcJulo..~, pa~lT1\:nt
ternh, U"\! p..'m111t..-J. In thLS c""'-'. the biddmg UOCUt1ll!lIb .. hall
clearl~ "'1.lle the cooouioru. for their (lI.:ccrlability And the method
uf Ihcir C\ ilhl.1tiun .•lI1d requm:: Ihal go\'Kb. e!.juiplllcnt .Uld \\ (10;,
1Th..... ling OIher inh.'f1l;LuOJl;.llly 31:I:C!lt ...-J slandml.; shall be of equal
or high"'r ~'qUI\ .llclll.'C
2.11 ..:\ '\11 rnl'op!.'tll\e hidd,:rs ... hall be rfll\ tdcd Ihe ...mlC
mf\m11aIIClIl. ami "hall he a.'\.,un.-J III "'""lILlal UpPllrtUl1Ltl~'S III
obl.un 8ddlll(.nal mli.mnall()11 un a tlmd~ l"I;N _ Ik'OClil:l,ui........ hall
pm\ tde I"\! sonahlc 31:1:"'''' to pl1llC..:t SIII.'S lilt \ I~b h) pn)'Jl'-'t-
II\e hidders I·m \\nrl,.s (lr compk... 1>uppl~ wntr.t..:h. panieularl~
lilr lhose r\.'quinng rcl"urbi ... hing c:mtLllI:\ \\\Irk, Of equirment. a
pre·b,d conll'n:nl:e may be arrang ...d "hcreb) pOlential bidt!e,....
may m..-ct "ith Ihe rcprescntal\\CS 01 Ihe Ilcncliciary 10 Sl!cl,.
clarilieallL.ln,. \1inules urlhl! nmli!rcnce ... hall Pc pro'> ided 10 nil
pro~p.!cti\e hidders with a COP} 10 IDIl. Any addition:!.I
information. dorification. Com:cll\)n of eml"" or modifications
of bidding documents shall be \ent III each Iknefielal) of the
original bIdding documcnb in suOicienllime before the deadline
for receipt of bids 10 enable bidders to tal..c appropriate aClion.
If nccC!»3l). the deadline shall be c\.tcnded. IDB ... hall rccci\c
o copy (in hard copy or by electronic mail) and be consulted lor
js~ulllK a "no-obJectIOn".

2.12 SI)l'{:ificlition" and Slitmlltrd"

Technical specifications and standard~ qUOlcd III bidding
documents shall promOle the broade,t po~sibh.: competition .
.... hile assunng the critical performance or OIhcr rcquircmcnls
for the goods and .... orks under procurement As far as possible.
the Ikneficial)' shall speeil'> mtemauonall~ accepted standards
.. uch as thl.l'>C I ...... ucd by the Intcmationol Siandards Organi7.ation
.... ith v.hich the eqUIpment or matcrials or workmanship shall
comply W here such standards arc una \ Ull,lblc orare mappropriate.
I1:ltionnl standard... may be spcclfkd. In all cases. the bidding
document... 'hllil ... tate that such cqUipment. m31crial or
\H)rkll1an~hip \\ III be acceplnble a~ long <I~ it has equal or highcr
~Iand<lr&,

2.13 Spcciliclltion .. for F:quipment and l\e of Brand

"arne"
SfX.'Cilicalions ,>h<ll! be ba'-Cd (In relc\ant charncleristie~.
pcrfllmlancc. capability. and quality. and shall not prescribe
brand name~. catalogue numbe"". or produch of a \j'II.'l.:ific
manulilcturer: [f it is neceo;sury 10 quote 11 brnlld name or
catalogue number of a panicular m,mulilclurer to clarify an
othCT\\I~\! inC()mplcte ~pecificatlon, the words "or equi\alent"
~hal1 be addc<.t after such reference. except in \'ery special
(a'leS when ~p...--cific spare pans are required where a degree of
stand'lnli/alillll IS nccc:.'>3ry t(1 maintain cenam es'>ential
Ii:aturc). In '>uch cascs, and \\-here appropriate, the sp...--cification\
,hall (lenmt aCCL'PlaIlCe of ahematl\e goods" hlch ha\e" ~imilar
cMrnclen'>tio, and pn:l\ Ide perf('lnnancc and quahty at le~t equal
Il) d\(l'ol! ~ftCCI[icd. In all ca.<;c:.. \\here brand names are deemed
justitied to be procured. prior apprm 31 of IDB must be obl3Jned.
2. 1-4 Orlj;!ln ofCuoch lind \\01''''
Bidding document'> shall indicatc Ihat the ~uppl) of good,>
and works financed by lOB is limited to goods and \\ork~ and
related \eT\ 11,:1.'... nnginaling fr('lm eligihk elluntries. and pro~JX'Cti\e
hiddl·.... arc rc~luired 10 pro\'ide the Ilppropriatl' inlimn<llion.
2. 15 \alidit~ of Hid,
BiddeN shall Ix required 1(1 ~uhmil bU,h \alid I~)r a ftCrit'ld
'>ftCcilied III Ihe bidding documents. ~ullieiel\l to enablt:: the
BCllciieiJT) to complele the companStln .md e\ alualion of bids.
llhwin the nccc~-.aT) "ppnl\ah from IIlIl ami rtl~ .. ib!c lliher
co-linalll·icr.-i so Ihal the 3\\ ard til' COIllTill'\ can he notificd \\ ithm
thOlI period rhe \;\lIdity periud slHluld normally bl'
 from 60 to 120 days and may be up to I NO days ror large and
eOlllplc~bids.
2.16 Bid Seeurit)
Beneficiaries shall require from bidders a bid sccurity to
sccurc the validity of thc bid within the period specified in the
bidding documents. The bid security shall be in the form and
amount specificd in the bidding documents' Two percent is
generally considered fair and reasonable . To ensure confiden-
liulity of Ihe bid price. bid securities should preferably be set
in fi.\(.>d nmounls for all bidders. The bid securily shall remain
valid for a period of four weeks beyond the validity period of
the bids. in order to provide reasonable time for the Beneficiary
to act iflhe security is 10 be called or till the pcrrommnce secu-
rity or the successful bidder is obtained, Thc Beneficiary shall
return thc bid securities to the unsuccessful bidders ten days aftcr
notification of thc final decision or selection to the successful
bidder.
2.17 Pricing
2.17.[ The l3encficiary shall invite bids lor goods on the
basi~ ofCIF (porI of dcstjnalion)~ or CIP (place of destination)
for all goods ofTercd from and manufactured abroad. including
those pre\·ious)y imponed. and EXW'I{cx works. ex factory or
otT-the-shell) for goods manufactured in the country of
the Bcncficiary. Bidders may arrange for ocean and other
transportation and related insurance from any eligib[e source
in accordance wilh IDB digibillty requirements. Where
instal1:ttion. commissioning oj' othcr similar serviccs arc
required to be perfomled by Ihe bidder, as in the case or"supply
and installation" contracts, the bidder shall be requircd to quote
additionally for thcse services.
2.17.2 In the case of turnkey contracts, the bidder shall be
required to quote the price of the install(."<i plant at site, including
all COSL'i ror supply of equipment, marine and local transponation

• The i"umli,t of the bid '~~urily shull b.: in ~c~"rdance II 1(11 the form indud-
~'tI in (he bld.!'n)! documents and stlallbc IS~Utd by a rqlu(illlic b~nk ur financial
Inslitutiuu ,elected by the bidder. tfthe inslltullon iSMling (he ~CClirity I~ located
<lut.';i.!e the ~(luntry of the RcncficiPI)'. it ~hall have 0 cOlTC'il'ondent fil1an~iaI
(n,tlTUtl(lU located in the t;(lunlry or th.: Bcndicint) tu Inllke it cllfill':.:ablc,
In Ihe ~a~,' of hm;e Account [pum!;r;'ph ~.(,). Ihe hid 'e~urity may be
wail cd al the dlscrcllon of IDB.
• Refer (0 t"J("(lTT'RMS 2000 for (unherddinitiou" Pullli,h"d by Ihe Inter·
t'lational <:liaml><:r "fCommerce. ~H Cou,," ",[hen ler. 7~()(JX Pan,. Frnn~,·. 01
IS nwt. in""·lln(e and Ii-eight tor m"rilim~ Imn'iX,nallon. UP IS e(>s\, (ama!!C
and in,umn~e m the ca~ ofmuhimooal tmn'J'lI>na(mn t.,
(he place ofdcs(in~·
tion. l-!<llh term, In: 1i.'T duty unpaid. p<!ymem ti.,r windt i, (he rC'PQn.,ibilit) Ilf
(he IlcneticlJl'). Ifprel'iou~l~ Impon~d !!,I(I(), arc eonc~mcd. the UP pric.: of
,uch M:vods ~hJll U1~lude (h.: mart·up oflhe 1,lf;:all')!~"1 <IT rcrre~ental;l~ and "II
local ~o".,. C\CCPI ImpOrl duties and tuX\'~,
'The ],XW price Inchldes illl dUlles. sale,. und uthcr la,e~ already paid or
paYllhle ror thc t;omponcnts and mv,' nllUeriilb \l.,c(\ in the tnanulilc!un: ()[ (he
cquillr'lu:Ilt olTercd in the Ilid,
and insumncc, installation. and commissioning. as wcll as
associutcd works and all oUler services included in the scope of
contract such as design. maintcnance. op!'fmion. Unk'Ss otherwisc
specified in the bidding documents, the turnkey price shall include
all duties. taxes. and Olher levies w :.
2. [7.3 Bidders for civil works contracts ~ha[[ be required to quote
unit prices or lump sum prices for the pcrfomlance of the works,
and sllch prices shal[ include all duties, taxes. and other levies.
Biddcrs will be a[[O\-ved to obtain all inputs (exceplunskilled labor)
from any eligible source, in accordance with the eligibilitylboycOlt
requirements oflDB. so thaI they may oOh lheirmost competitive
bids.
2. 18 Price Adjustment
2. [8.1 Bidding documents shall state either that (i) bid prices will
be fixed or (ii) thaI price adjustments will be made 10 reflect :my
changes (upwards or downwards) in ll1:ljor cost components of
Ihe c011lmet, such as labor, equipment. materials, and fuel. Price
ndjuslment provisions arc usually 110t nccessilry in simple contJ"lICts
involving delivery of goods or compleliun of works within 12
months, but shall be included in contracts which cXI\::nd beyond 12
months. However. it is nannal coll1ll1crci;J1 prnetice to obtain finn
prices for some types of equipment rcgnrdles..; of the delivery lime
and, in such cases. price adjustment provi~iol1S arc not needed.
::!.18.2 Prices may be adjusled by the usc of a prescribed fonnula
(or fonnu[ae) which breaks down the total price mto components
that arc adjusted by price indjc~ sp..."'Cificd for each compOnent or,
aitemutivcJy. on the basis of docLLmentary evidence (including
actlwl invoices) provided by the supplier or COnLrnctor. 111e use
of Ihe fOIllLlL[a method of priee adjuSlll1eLLl is preferable to that
of documentary cvidence. 111e method to be used, the fonl1ula (if
applicnblc) and the base date for application shall be clearly defined
in Ihe bidding documents. I[the payment currency is diflercnt fium
tllC source OftllC input and corresponding index, a correclion factor
shall be applied in the fonnu[a, to avoid incorrect adjustment.
Currenc), of Bids
2.19.1 To en~lIrc fairness and transparency in the bid evaluation
process, and to obtain best possible pricc, bidding documents slmll
(a) clearly slate Ule currency or cUrTCncies in which bid prices
may be c... prcssed and U1C cOntracl price shall be paid, and (b) Ihe
conversion method of prices expressed in different currencies into
a single currcm:y for the purpose of comparing bids. Clarity of Ihe
pricing proviSIOns in bidding documents is esscntinl to provide
biddcrs an opportunity to minimize exchange risks, and, if ne...."'ded,
to chose a strongcr currency for paymcnt 10 slrcngtJlcn and stabilize
tJ1C value oflhc bid. and to prolecllhe Bcndicmry again:;! pOssible
cl<Lim~ <Ln~ing InlLn unloresccn turn:ncy nuctualion~.

IOlknC'tic'lal1~~ nwy prekr u> c\clud~ ,'n,lom, JUlie., on ImpnrL~d c'quipm~nl

["rom 1h~ blJ pric~" ,!nee 1ill'S\! arc difliCIIl11<' aSCCrLum e'f. ah~m~lwcl), w 1II~IU(t~:I
"pro\"iunlll 'lllll" for f\:imbu=ln~n1 of(ldllJi CUSI"

Gll1ddttlt..'s for Procurement of(iol1J .. ,mJ Works 17

2.19.2 Spccific[lliy, the bidding documentS shall state that the
bidder ll1[ly express the bid price in the currency of the bid-
der's cQunll). or in a foreign currency widely used in international
trade. A bidder who expects to lllcur expenditures in more
than one lorcign currency may express its bid in morc than
one but no more than three such currencies. Alternatively, the
bidder may express the entire bid in one currency bUl require
percentages of the bid price to be paid in other currencies, while
providing the exchange rales used in these calculations. The
Beneficiary may require Ihat bidders ~tule the portion of the bid price
representing lOcal costs in the national currency.
2.19.3 In bidding documents l'Or works, the Beneficiary
may require bidders to state the bid price entirely in the
Beneficiary's currency, along with requirements for loreign
currency payments in up to three foreign currencies of their
choice lor expected inputs from outside the Beneficiary's
country. Such requirements shall be expressed as a percentage
of the bid price. together with the exchange rale used for these
calcul:llions.
2.20 Cun·cnc~' COInersion for Bid Comparison
n,C bid price is the sum of all payments in various currencies
required by the bidder: For the purpose of comparing prices,
bid prices shall be converted to a single currency selected by
the Beneficiary (local currency or fully convertiblc currency)
and stated in the bidding documents. The Beneficiary shall use
this conversion by using the selling (exchange) rates ror those
currencies quoted by an olTIcial source (such as the
Centml Bank) or by a commercial bank or by an intenltuionally
circulated ncwspaper for similar transactions. The convcrsion
date shall be selected in advance, and Ihe source and dale shall
be specified in the bidding documents. The dUle shall nOI be
earlier than four weeks prior to the deadline for bid~submission
and not later than the original expiry date of the period of bid
validity.
2.21 Current) of Payment
2.21.l Payment of the contract price shall be made in the
currency or currencies in which the bid price is expressed in the
bid orthe successful bidder.
2.21.2 When the bid price is required to be Slated in the
Beneficiary's currency and ute bidder has requested payment in
foreign currencies expressed as a percentage of Ihe bid price,
the exchange rates to be used for purpose of payments shall be
those specified by the bidder in the bid. so as to ensure that the
value of the l'Oreign currency portions of the bid is maintained
without any los!> or gain.
2.22 Transportation and Insurance
The bidding documents shall slate precisely the Iypes and
terms of insuTUnce to be provided by the bidder from tiny
eligible Country and shall mdicate thc kmds of ri:;ks to be
insured agaimt, the liabilities to be co\crcd, and thc dUl1ltion
of the Insurance. For good:;, the indemnity payable under
transportation insurance shall be at least 110 percent of the
COnlraCI amounl In the currency of the contract or in a freely
con\crtiblc currency. to enable prompt replacement of lost or
damaged goods. For works, a Contractor's All Risk ronn of
policy ,;hall usually be specified. Dependmg on the mode of
financing. the type and extent of insurance to be taken out is
to be fully eo .. ered 10 the Financing Agrcement. For leasing.
Instalement ...ale and Istisnu'a. the lOB shall be the loss-payee
of the ill',uranee and any indemnity shall be payable to lOB in
freely con\iertiblc currcncy.
2.23 \lternalh e Bids
If ahcOlatl\C bids arc allowed. thc BIdding Documents
... hall 'tatc clearly hm.. such bids shall be ... ubmllted,
prices ~hall be olTered and hm.. they ... hall be evaluated. If It
bidder wishes to propose de\iation~, or propo,e an alternative
solution, the bidder shall first quote thc price for the Tllethod and
speCIfications indIcated in Ihc bIdding document and
secondly indicate the price for the de\iatioTl or alternative
solution. Only the alternative bid submillcd b) Ihesubstantially
responsive lo"e!.! evaluated bid shall be comidcred.
C. F:\wntial f:lcm('nl!l or the- Contract I)ocumenh
2.24 Conditiom ofContraet
The contract documents shall clearly define the scope of work
to be performed, the good~ to be ~upplicd. the rights and
obligotiom of the Beneficiary and the Supplier or the
Contractor. and the functions nnd authority of the engineer,
architect or construction manager. if onc is employed by
Ihc Benciiciary in thc supervision and administration of Ihe
contract, including payments and advances to be made. if
an)'. In addit10n to the general condition!> of contract. special
conditions shall be included particular to the I)PC:-. of goods
and works to be procurcd and the locat1on of the project site.
The condition!> of contract shall prm ide a balanced allocat1on
of ri!>ks and liabilities.
2.25 TI:rms and \1clhod" of "'a~ owni
2.25.1 Paymcnt terms Shllil be in accordance with thc
intern31ional commercial practices. apph~'abk to the specific
goods and works. and disbursement of ... uch payments from
the IDS finanetog shall be made in accordance with IDS's
Di.,buNcmCnt Procedures and the hnanclng Agreement.
2.25.2 Contracts for the supply of goods ~hall pro\ ide for the
payment on the deli\ cry and inspectIOn, iho required. of the
conlr3clcd goods c,ccpt for contracts to\"oh tog installation
and C{l1ll11l1~si()n1Og. 10 whIch ca~c a p(lTIHlIl of the payment
moly be made .Ifter the Supplter hi!" complIed , .. Ith all 11~

(iuldellncs for Procurement Ilf (juod.s and \\'orks 19

 obligations under the contract. The use of letters of credit is
encouraged so as to ensure prompt payment to the supplier.
2.25.3 ConlnlCLS for works shall provide in appropriate cases
for mobilization advances. ad\ances on Contractor's equipment
and mlltcrials 10 be delivered to Ihe site for incorporation in
the works, regular progress payments. and reasonable retention
amounts to be released upon compli:mcc with the Contractor's
obligations under Ihe contract.
2.26 Ad\ance and Progress PU) ments
2.26.1 The tender documents shall (a) specify any advances
thaI may be made for supply of equipment and machinery.
mobilization expenditures, or shipment of materials on site for
incorporation mto the civil works and stich percentage should
not be in excess of 80% of the value of such materials. (b)
require that such ndvance payments shall be covered by an
unconditional and irn:vocabl!;! bank guarantee issued by a bank
aceeptllblc to IDB and (c) specify Ih..: modaliti!,)s and the lenns
lind conditions under which the guartlntee will bc recovered
and released. Ad\ancc payment:) mude upon signature of the
contract for mobilization and expenscs should be reasonable
and should not exceed 20% or the contract price.
2.26.2 Progress payments under the contract shall be made in
the currency or currencies in \\ hich the price has been stated in
the currency of pay men I menlioned in the tender documents.
2.27 Change Orders
During the execution of a contract. chllnges may occur in the
quantity or work done requiring amendmcnt~ to the contnlct
agreement between the Beneficiary and the contractor: Such
amendment:) are executed by a chunge order or variation
order. prO\isions for which arc made in the Conditions of
Contract. and are justified in the progr!;!:)s rcpons of the project. The
Beneficiary shall seek lOB's "no-objection" prior to Ihe
proposed amendment. Price escalation resulting from change
orders should not exceed 20% orlhe contracl price.
2.28 Performance Security and Retention \toney
2,28.1 Performance securit)':
I. Bidding documents for goods I1ml worh:!> shall mquire a
pcrfonmmcc security in the form of guarantee from a
bank or a pcrlonnance bond from an in~lIrallce company
acceptable ttl IDB.in accordancc\\ ith (he loml included in the
bidding documentst l • and in an aillount sufficient to protect the

'The I',rmat of the ~rtorm3nee sccunl) ,h~1t be ill m:curdJm:o: wilh Ihe form
indudcd !n the hidding do<.:umenL:; and ~h~tt be l"llCd h) a rerutable hank or
tinanctal in,mullon selccted by the htdder If the ttl~titutlOIl I~SUIllS the security is
lnelllcd out~!dc lite e\IUlllry Oflhc Bclldici~Lry. it sh.lli ha'c 0 eorrcsrondem finan-
end ill~lL1Ulion t(IC~tcd in the country ofthc l3~ncti~i;lry 10 mH~c it L'IIfor~;enblo::.

20 I (jlJlddinc~ j(lr Procur~men( ofGooJs and Works

 Beneficiary against Un\HlisfacllHY qual it} of the
goods. non rcrformance {If the g.oods contract or tne
equipment Installed. or noncompletion of the \\ orks.
In contracts for goods. guarantees to protect the
Beneficiary again!.1 nonperfonnam;c I,f the contract 8re
required only \\ nen this i\ normal cummen.. ial practice
undt.'r the market conditIOns for the ,oods in question. In suppl~
and in!.lallatllln cnntrach.lhc pt!rformance sccurit} e"\h:nd!.
unlll acceptam:c nfin!.talled plant and I!. usuall} replaced by a
\\-arranl} for the \\-arranty period
2. The performam:e security shall be pro\ ided b} the
..elected bidder prior tocllntr.u.:t !.I~maturc' l, The amount of the
M.'"(;urity \\-ill depend UfXlTI the t)ope and magnitude uf tne
good., or \\orJ,;." but normall~ 5 to 10% of the contract
value is deemed adequate to protect the Beneti.ciary and in
any case thiS .. hould not e\eeed Ilr"Q. I IIme\ cr. the bid and
conlmet docuillents shall require thallfthmugh change orders
or lor uther rca.,un., the \ alue of the cnntr.lcl price e\cceds the
amuunt uf thl! original conlr:lCI price by a cen'lin percentage,
the !.I!curity will be im:n.'<I\ed by a proportional amount. 11,e
pcrfllml;lllce security sh;J1t be dlsch;Jrged :lner completion of
Ihe conlra..:! and e\plralltln of Ihe \\arranty period up to final
acccptance. If there I... nn delault
2.28.2 Rell'nlion 'lollc~ :
Retenllllil mUlle) ma) be required in addition In the
~rli.lrm:lIlCe ... \.'Curil~ Iw..'"(;ausc il \t:n.e ... dllkrent pU!pll'>t:~, It
i... a per\.·... nta~e dcduck'tl from tht.· agreed periodic pa),ment.,
for "or\;'... llT ,,"UppIiL'S h\ protect Ihe Ucnefkla~. in the ca!o.e
of \\ork .., <l!!ain!>1 I.kh.'Cb liabitili\.... or II) OOh.'f" the maintenance
period up 10 linaillce..."tance of the \\ork) by thc lkndiciilI).
or. in thc Ul\e or goods. tn COH'r the \uppJier\ \\arrant)'
obligaliolb or an) in"'IaJlation or cllmmi"ioning n.:quircmcnb
Retention mone), shall he 1'C:I";I\nable in amount and in
:leeoman,"e with commercial practice and \'ar) between 5 to
I (J"." of the pilymcnt .... but the t(ltal am\lunt should nOI e\eecd
lOo Gllf the conlract pm:.... , The retentmn money may, at Ihe
option of th .... llendicI<lI). be replaced \\ itlt a ~ujtablc bank
guarantee rrom a hank acceptal:lle \0 the IDB. When u<;ed a ...
a g.uaranl...e. r... tcntiml muncy ... hould not exceed 5% of the
eontra!;1 price.
2. If tile contmcl provides I'm hoth a pcrromlance ..ccurit)' and
retentIOn mone}'. Ih ... lolal ;Imllunt Sh(IUld not e\ceeds 10%.
othe,"", ise it Illa~ dl ..CllllT;lgC potential bidders bccau...c of the
high financing I;j)S\. Illr \1I1a]l \\ or\.. .. cunlrach (Ill particular COIll-
munit) particlpatll.n p;J(agraph .171. onl) n:lentl(1O nwne)

"
pcI1 ~ ~ ,""I) or ,,,I. nl mop N\ I'oe Ai,e<l •. t: dlSl '~lIon

mil

Guidelines for Procurement of Goods and \\brks 21

 mny be sufficient. Bidding documents mny provide that pari
of the retention money may be released upon provisional ac-
ceptance of the vvorks, and the remaining retention money be
replaced by a bank guar.mtce acceptable to IDR
2.29 Indemnification Rcxluiremcnts
Contracts shall clearly state Ih:1I the proceeds of any claim
ansmg from pcrfonnance guarnntces. adva.nce payment
guardntees and any insuram:e policies entered into by the contractor
under the Ii...'TTTlS of the contract, shall be payable to IDB 10 the extent
of ilS financial participation for the account orlhe Beneficiary. IDB,
upon receipt of such proceeds. will credit the Beneficiary. Upon
reaching agreement, any amount which is rightly due to IDB as
reimbursement of previous disbursement on .my item which is
the subjcct of the elaim, will be deducted from the Financing
Agreement and the balance orthe amount received under the claim
will become due for payment to the Beneficiary or the contractor,
as the case may be.
2.30 Liquidalt'd Damages and Bonus Clauses
2.30.1 ConlrncL<; lihull provide for liquidated damages or similar
clauses in an appropliate umountl.l to cover the cost of delays in
the delivery of goods or Ihilure to meet perfommnce requirements,
or noncompletion of the works, which result in loss of revenues or
other benefits to the Beneficiary.
2.30.2 Provision may also be l11<1de for a bonus \0 be paid to
suppliers or contractors for completion of contracts ahead of the
time specified in the contmet when such earlier completion would
be ofbcnefit 10 thc Bencfieiary.
2..31 Force \lajeurc
The conditions of contract shall stipulate that failure on the pan of
the panics to petfonn their obligations under the conlraet will not
be considered a default if such failure is due to foll.."C majeure as
defined in the contract.
2.32 Applicable J.3\\ and Settlement of Disputes
The conditions of contract shall contain provisions dealing with
the applicable law and the forum for the settlement of disputes.
International commercial arbitmtion has practical advant.1gcs
over other I11cth0<6 for the settlement of disputes. It is, therefore.
recommended that Bcneficiaril."S consider international commercial
arbitration in contmcts for the procurcment of goods and works.
In case of works contmCL<;, supply and installation contmcts. and
tumkcy contracts, lhcdispute se!llement provision sha!1 also mc1ude
1llcchlll1is1l1s such as dispute review boards or a dispute review
cxpen which are designed to permit a speedier dispute scttlement.
D. Procedures for Bid Submission, Opening,
E\aluation and A\\ard oreolttraet
2.33 Bid Submi~sion
2.33.1 Unless other.visc agTCCfJ, lOB requires that bids are submif-
ted in accordance with the IDB Standard Bidding and Contract
documents.
" An Ilmoul1! I\(ll c.,c~du~SJ!~~yflhc con!rnci price Is nonnat commCTCiat
prnellc,".

22 GlIIddl1lC~ for Proc.:urcl11cnt of Goods and Works

2.33.2 l1le Standard Bidding Document includes: (a) the
Invitation for Bids including the bid submi~sion and
openi ng date; (b) a standard section comprisi ng the Instructions 10
Bidders on how to prepare the bids and ho\\ they will be
evaluated and awarded. complemented by a Bid Data Sheet
elaboratmg on the standard instructions and IIldiealing the
specific requirements for the procurement. including the bid
price, and specific evaluation and award criteria; and {cl Notes
on Technical Specifications and Drawings, Sample Fonns.
includmg the BId Fonn, Bid Security and Pcrfonnance
Guarantee Fonns, Bank Guarantee Fonn. Price Schedules,
Change Order Procedum. and Completion and Acceptance
Certificates.
2.33.3 l11C Standard Contract document lIlcludes (a) the
General Conditions of Contract. mcludmg provisions for
contmct implementation and payments. pcrfonnancc
guarantces and acceptance, liabilIties. and arrangemcnts for
dispute rcsolulLon, (b) the Special Conditions of Contract.
clabomtlllg on the Geneml Conditions of Contract where
nccdcd. providing specifics on the contmct price, guarnntccs
and retentIon moncy. advances and payment schedules. work
and deli\'cry schedules. certificates of provisional and final
acceptance. penalties and dispute resolution. rmd (c) Fomls of
Contmet Agreement and Ad\ance Payments. as well as othcr
rclevant Fonns.
2.33.4 Modifications \0 the General Instructions to Biddcrs
or General Condition . . of Contract shall only be introduced
through the Bid Data Sheet or the Special Conditions of
ContrJ.ct. resJX,.'Ctl\cly.
234 Time inler"! ht'hH'cn Bid In\ilalion and Bid
Submi .. \ion
The time allowed ror preparation of bids \\ III depend upon the
magnitude and complexity of the contmel. Gencrally not less
than 60 day!> shall be allo\\cd for leB or ICB MC. Where large
ci, il work .. or complel( procesS plants are mvohcd. generally
not less than 90 day~ shall be allo\\ocd to enable prospective
biddc~ to conduct investigations at the sitc before submitting
their bids. In such ea!;cs. 1115 recommended that the Beneficiary
con\ene pre-bid conrerences and arrnnge sile \ isits.
2.J5 Bid Op€.'ning and baluation Procedure!;
The dllte, hour and pillce for the receipt of bids and ror the bid
opening shalt be announced in the imitation to bid. The time
for bid opening shall bc the samc us for the dcadline for the
receipt of bids or if bids are received in a location different
from the place of bid opening, promptly thereafter, allowing
Just suftielent tulle to take the bids to the place announc<."<i for
bid open mg. Bids shall be llpened Hl public and biddet1; or their
representati\ es shall be alloM.-o to be prc'>Cnt Bids rccei'vcd
3fter thi,time ~hall be returned unopened'~ Thc name of the
bidder and total a1ll0unt of eiteh bid and of any alternative
bid ... if they IM\c been requested or permlttcd shall be

"\0 C'''''lIllOn IIcrnullcd

 read aloud .md recorded. and 3 copy of this record shall
promptly be -.ent to atl biddeN who submitted bld~ in time and
to IDB along \.\-ith the evaluation n:port,
2,]6 ( larihcalion or \hcratinn of Bid,
Bidden; ~hall not be penniucd or rcquested to altcr thcir bld~
after the deadline for bid ~ubmisslOn. For the purpose of bid
e\'3Iuatlon. the Bcnefieiary may need to ask clarifications
from biddeN, for example in the C\'CI1\ that somc pages of
supporting mfonnation tire not Initialed. Ifn:qu ircd in the bidding
documents. or if the bidder has not selll the required number
of COplCS or omitted a fonn. Reque!'.ts for clarifieallon and
bidder's rcspons.cs shall be made in writing and any
discrepancies noted shall be f\.,<:ordcd in the bid e\'3Iu3l10n
report, I(o\\-e\ er. thc Bencficiary .. hall not a... k nor allo" bidders
10 change Ihc .. ub<,tancc or pnce oflhe bids ancr bid opening.
2_'7 Confidcnlialif) of Proccdun' ..
No infomlation relating 10 the cxamlll3tion, cl;lrification 3nd
evaluation of bids and recommendations concerning award ..
shall bl! communicated to any peNon nOI officially conCl!med
with these procedures until Ihe 3\.\-<lrd of <I contract \0 the
successful bidder is announccd,
2.."\ft h.llminlltion and Compari",on of IJid'i
2.3K I The Beneficiary shall usc, or en!'.ure Ihe u~ of. the
IDB Standard Bid Evaluation Repon fOT the r'aluatlon of
GOO(1\ and Works to delail the srccilic rca~ons on \\ hich the
detcnnin<ttion for thc r...'Commcndation for the a\\-ard of
COniraCI is made and send Ihi'" Report to IDB ,\-ilh Ihe
Bencliciilry's contract award recommendation lor lOB's
comments and "no-objection" berore the awurd of eontrncl 10
the sueees~ful bIdder is announced In ease of doubt, the IDB
ma)' request the three lo\\eS! c\ aluatcd cost bid~.
:UK2 The Beneficiary shall cany out the bId c'aluation in t\\O
pha"cs: (a) a Preliminary e'lamination Bnd (b) haluation and
Companson of Bld~
LULl Prchmlllary examination is u~cd 10 \'crify "hclher the
bid.. an: subst'lllllally re~]lOn<,i\'e to the bidding documcnls:
ha'e they ~en properly signed. arc thcy accompanied by a
valid bid 'iccuriIY. If required, do they meet the eligibilily
requirements. are Ihcy complcte, do theyquolc prices lor all item<,
in the 101 or package as ~llpulated in Ihe bidding ducument. ha\'e
computalll1nal ernJ" been made, and an: the bids genernlly in
order. If a bid does not .. ubstanllally conlonn to the
speelliealions.or eontallls in3dml ..... hlc rl!'>en allons or IS nOI
olhel"\\ Ise :.ub .. tantially rc:.pon:'I\C 10 Ihe bidding doeumenl ...
It .. hall be reJeclCd and nOI be conw.kred funher,lIo,\c\er. a
bid .. hould nol be reJccted on mlllor prm:edural grounds' •
I (l' nllllll'ic, • I>ldd..'I' hu omlllcJ 10 m,tlal ... 'me f'ill.t~ of \urf'lll1mll
dU'UnlCnl~II"n. ,I' Ihl~ I' r\"'qlliroo mill': I;Ilddmt! d"'"nlenl"

24 IGuidcllll(,s for Procur~ll\('nt of Goods <lI1d Works

\\ hich can be ri..'Ctificd through the c1arilkatlon process_ The bid
shall not be made rcsponsi\c by the bidder by cOlTC'Cting the non·
conlormll} or \\ Jlhdrawing malerial de\ ialions or I'CSCn alions.
:!.38.4 Detailed e\ aluation and compari<;on of bids is used to
determmc the co.. t to the Beneficial) 01 each responsi\e bid
in a manner that permits a compario;on on thc basi .. of their
evaluated cost in order to select thc tcchnlcally a(:ecptab1c
10\\e<;1 c\aluated (:OSI bid.
2.)85 Bid e\aluation shall be (:onsi ..tent \\ itll the tcrm .. and
cOllclitiom set forth in the bidding ducument\_ The bid pri(:c
read out aI bid opcnmg shall be adJu<;h!d for any arithmetical
error;. and adJustmcnts ... hall bi! madc for any quantifiable non-
material dc\ iation<; or fCSCn atlons_ Price adJustmcnt pm\ isions
appl}ing to the pcnod of Implcmcntatlt)fl of the contract shall
nOi be taken into account in the c\aluation
:US.6 For lhe surpl)- of Imported goode•. the c\aluation and
comparison Clfhid~ <;hall he on Ihe ha~i_~ nf ('IF or ell' (PIll(:e
of Destination) priccsl~ For good, manufactured 111 the
Beneficiary... COUll If'). EXW pricc" :in.' e\ aluatc:..'(i and
compared. Ifolds arc on the basis ofCIP(Place of Destination),
Ihe cost of inland tmn'pClrtation and msurance to the place of
deSlll1atllln ,hall he added 10 the pricc of d01m;"\lically produced
gool.h. In addition. pricc\ for an~ required in .. tallation, training for
lI..'Chnolog} lran~li.:r. and ot~r <;imi1:lr ..... n i(:cs !>hall be
c\aluated and compared.
:!.JS.7 In addition to the bid price. adJu~t(.'d l'Or arithmetical
error;, other 1;'lctor; may be takcn inlo considcratioll, .. ueh
as the time of completion of con,lruetIOll. thc rehabilit} of
comlnlctil.ln methods propo!.Cd. payment schedules. dcli\ery
timc<;. opcr.illllg costs or the efficiency and (:ompatibililY 01"
thc c4uipmcnt. the a\ailabilily of\Cl"\'i(:e and ... pare pans. ;tnd
related tminmg for ti..'Chnology lran\fer and afet). To the c"\!ent
practicable. these factors shalt be c\pn..~d In monetaT) terms
according 10 criteria 'pccificd in the bidding documents.
2.JS.~ Linder \\orl..s and tumke)- C\llHracts. contracto.... arc
re'polblblc for all dutie\. ta"\c!> and other le\ ICS and bidders
,hall lake the ..e lactors mtn account in prep.lring their bids. The
ehllu;lIioll nod comparison of bid~ <;hall be on this ba\ls. Bid
C\;lluation fur \vorl..s shall he ~trictl)- III monetary tenm. Any
procedure. under \\ hich bids atxl\e or bclO\\ a predetermined
bid \ alue an: autlllnatically di'>quahficd. IS not acceptable. If time
h a cnllt·,J! lact{lr. the \alue oll'arl)- complctllm 10 the Ikncficiary

<. II ,~ U5<....J 1«.elI lransport only. t IP,s u'>Cd r. ;till 1IID<k" tra:!!opt""
1",,-1I1l1o !Col o! mult, ...1<1.11 tran~p"n.no! !>UlIlh ~'lIkcn (onl.un.:n...:d
"""I nl,· ~ •. lIuall'lf1 III 1"0,.1, ,hall 11"1 I h nUll J""Unlldl '!DllI",. IIUII~~ anJ
"III., la,~ !.:llcd "n til.: ,mf'<'n~d l:l'II,J, an.1 11"01 .11.: rht 1",II~r I:I\'.... !.:I 1':.1
In ~"nn ... II"'1 I> nh Ih.: •. 11... "r Jdl\cf) "r ~'II,J,
may be taken into account according to criteria presented in the
bidding documents, but only if the conditions of contract. also
provide for commensurate penalties for noncompliance.
2.39 Margins of Preference
With the consent of the Beneficiary, a margin of preference may
be provided to Member Countries finns, in case of ICB, when
comparing bids from the Member Countries with those of non
Member Countries. The tender documents should refer to this
preference and specify the manner in which it will be applied.
The preference will be stated in the tender documents with
prior consent of the lOB. In the case of goods. no goods shall be
eligible to this preference except those goods complying entirely
with the required specifications and standards. Such prefereoce
shall not exceed 15% of the price of the lowest evaluated otTer
(after the exclusion of custom duties, taxes and Olher charges). It
is a condition for the application of this preference lhat the added
value in the Member Country reaches 30% or more. In the case
of civil works, a margin of preference may be provided to local
contractors and shall be a percentage to be agreed upon with the
Beneficiary and shall nOI exceed 10% of value of the lowest bid
from amongst the bids that satisfy the conditions, according to
the technical and financial evaluation.
In case of joint ventures or any other foml of association
between member country finns and non member counlry finns
(excluding subcontracting arrangements) the above margins of
preference shall not be applied.
2.40 Extension of Vnlidit) of Bids
2.40.1 Beneficiaries shall complete evaluation of bids and
award of contract within the initial period of bid validity so that
extensions arc not necessary. An extension of bid validity. if
justified by exceptional circumstances. shall be requested in
writing from all bidders before the expir..ation date stated in the
bidding document. The extension shall be for the minimum
period required to complete the evaluation, obtain the
necessary approvuls and award the contract. In the case of fixed
price contracts, requests for second and subsequent extensions
will be pemlissible only if the request for extension provides
for an appropriate ndjustment mechanism of the quoted price
to rellcct changes in the cost of inputs for the contract over the
period of extension.
2.40.2 Whenever an extension of bid validity period is requested.
bidders shull 1101 be requested or be pennitted to change the
quoted (base) price or other conditions of their bid. Bidders
shall have the righlto refuse to grant such an extension without
forfeiting their bid security, but those who arc willing to extend
the validity of their bid shall be required to provide a suitable
extension of their bid security.
2.41 POI.tqualification of Biddl'r\
Ir Ihc bidding proccdure did not pro"lde ror prL'qualification,
the Beneficiary ~hBII carry out n postqualificution of the bidder
\\hose bid has been dctcmlincd to offcr the lowest c\aluated
cost bid, in order to vcrify if the biddcr has the capability and
resourccs to effccti .. cly carry out the controct as offered in the
bid. E\cn though thc preliminary examination \\ ill re\cal If the
bidder's bid is rL-..,ponsi\c. po!>tqualification is needed because
bidders' situations may change or may not be propcrly reflected
111 the bids. The cntcria for such po!>tqualification, 1I1c1uding the
bidder's rcle\ant experiencc, financial position, technical staff.
and net .... ork of aftcr-salt.~ !,CI"\-icc. if rn.!cdcd. shall be exphl1ned
in the bidding documents. nnd if the bidder d()(.~ not meet them.
the bid shall be rejected In \uch an e\ent, the Ikneficiary shall
select the next lo\\est evalunted CO\! bidder.
2.42 \\\ord ofConlr:tct
2.42.1 The ;mard of cont .... ct is subjcci to IDS's prior
approval III \\fiting and ~hall be made. within Ihe period ofthc
validity of bids, to the bidder" ho meets the appropriate standards of
technical capability and financial resources and whose bid
has been detemlH1cd to be substontlal1y rcsponsi\c to the
bidding dOCunlenL, and to oller the technically acceptable lowcst
evaluated COSI hid. Such bidd\!r shall not be rL'quirL--d. as a
condition of :mard. to undertake responsibilities or ",ork not
stipulotcd in the specificatIOns or to modify its bid as originally
submiltcd.
2.42.2 Upon fl..'Ceipt of] DB's "no-obj~'Ction", the Ikneficiary \hall
promptly II1fonn the successful bidder that it has been a\\arded
the contract and tn\ ite It to conclude Ihe contract'· . \\·ithin Ihe
timc pcriod ofthc validity of the bids. TIle lemlS and condilions
oflhc contract shall not materially differ from those \\hich were
included In the bIdding document!. and on the basis of\\hich Ihe
bids were 111\ ited
The final draft contr.Jel WIth the successful bIdder should be
submitted to the lOB lorciearanec.
2.42.3 The Beneficiary shall fumlsh to IDB a copy ofthc signed
controc!. togcther With the fir-.I request for disbursement and the
pcrfonllancc guamnt~'C.
2,42.4 The BenefiCiary shall publish thc awards for eonlracts
let under ICB, ICS-Me and NCB in on appropriatc ncwspaper
or Gazette gi\ ing thc nnme of the biddcr ond the amount of the
contmct. The descriplion and amount of these contr.JCts, together
\\ ilh lhe name of the winning biddcr, shall also be subject to
public disclol>ure by lOB upon the Beneficiary's eonfimlation of
contract a\'!lrd.
2.42.5 A contract" hich is a",ardcd \\ Ithout IDll's "no-obJcc-
tion" ~hall not be eligiblc I(IT IDB financmg.
2A.l Return ofth(' Hid Sl'curiti('\
,",ot later lhan ten da>~ altef nOlllicallon of the final deciSIon of
selection to the \ucc\! ..,ful biddcr, thi: Bcncficiary ~hal1 rcturn the
bid ~'\:uritiel> to th.: (lth.:r bidd':r\ .
• The COOlrao:l ,,11<>1 .......1!'>lr~I~·tr a~ '" the (a..cI>r'("n,ull:ln~("I1IrJo\:l', hut ullly
hn.ahL~-d fOl"lmrt.:m.:n1dh,lfl.
2.-*4 Rcjeelion of All Bids mid Rc-bidding
2.44.1 Bidding documents usually provide that Beneficiaries
may reject all bids, but bids should not be rej€..'ctcd and new bids
invited on the same specifications solely for the purpose of
obtaining lower prices. If the lowest evaluated responsive bid
exceeds the Beneficiary's pre-bid cost estimates by a substantial
margin. U1C Bcneficiruy shall investigate the c:ltL'lCS for the excessive
COSI. including the contents orthe bidding documents (in panicular
qU:lI1titics and technical specifications), und consider requesting
new bids on the basis ofa revised scope and cost estimate of the
works or the supplies to be procured.
2.44.2 Alternatively, the Beneficiary muy consider a reduction in
the scope and/or a reallocation of risk and responsibility which
can be reflected in a reduction of the contract price. Following
"no-objcction" from lOB. the Beneficiary may thCTl negotiate with
the lowest evaluated bidder to try to obtain a s..1tisfactol)' controct
on the basis of the revised tems and conditions. However,
substantiul reduction (exceeding 2OUIn) in the scope or modification
to the bidding documents onen require.s rebidding 10 avoid
ambiguities.
2.44.3 Rejection of all bids is juslified when there is lack of
effL'"Cti\"c competition.. or WhL'l1 bids arc not substantially responsive.
Ilowcvcr. lack of competition shall nOi be detennined solely
on the basis of the number of bidders. If. following IDB prior
approval. all bids are rejected. the Beneficiary shall review Ihe
causes justifying the rejection and consider Illllking revisions to
the conditions of bidding documents, design and specifications.
scope of the commct, or a combination of these. before inviting
new bids.
2.44.4 If only one bid has been received or is admitted for
detlllied evaluation. and is found to bc technically and financially
responsive compared to market prices, it may be considered. that
a competitive proccdure has taken place, provided that the IDB
is satisfied Ilml all required procedures have been adequately
carried out (e.g advertisement and evaluation process have been
properly done) and lhal justifications given are acceptable.
2.44.5 If the rejection of all bids is due to 1(lck of competition.
wider lIdvertising shall be considered. If Ihe rejection is due
to most or nil of the bids being non respon~ive, new bids wilh
improved clarity of scope, specifications und conditions may
be invited. with the prior approval of IDB. from the initially
preqmllificd finns, or if there was no prcqualific.nion. from only
those fimls that submitted bids. and a reasonable amount offime
shall be allowed [or the submission of new bids.
2.-\4.6 lOB's prior approval shall be obtained belore rejecting all
bids, .soliciting new bids, selecting the only one bid received or
evaluated. or entering into negoti:ltions with the lowest evaluated
cost bidder.
3. OTHER METHODS OF PROCUREMENT
:\.1 Ceneral Principl('~
There may be circumstances \\ here open lea or leB Me are
not the mo~1 economic and cflieienl mClhod~ for procurement.
and where other methods may be appropriate. In dClcmlining
the most ad\31llageous method for the Beneficiary. IDB will
tnkc into account the principlc~ of laimc'>". equal opponunily,
economy and enlcicncy in the interest of the Beneficial)". The
approprilllc methods and procedure .., and the categoric'> of
goods and works \0 which Ihey apply. shull be agreed between
the Bcncficl<Il) and IDB in the Financing Agreement Package,>
shall not be '>phl into "mal1er unil'. in order to make them le.. \
aurael;,,: for leB or leB ~1C or 10 distribute \:lricus Jo\... 10
dincrcnl bidden. to enlarge bidder paniciralion 31 the cost
of Ic...scr economy and efficiency- "Value lor money" should
I'CInain the mmn objccti\c of the Beneficiary. Ir apphcabJc.
package.. may bc divid,->d in dlit:lent I(}h Ihat can be
handled by local or smaller conlr..aClor~, \\ hile at the same time
allOWing larger bidder.; to bid tor the cntire package and otTer
dl~counts mlhe case of multiple contrm;t awards, which rcduces
the eo.. 1 10 the Beneficiary. The other methods of procurement
arc descrihcd helm\ in de~ending order of preference. The
procedures Ihr blddin!l. e\aluation and L"I)OIr..acl 3\\ard for the ..e
method .. arc slIllllar to the procedure, for leB and ICB \1(" in
the ..e GUIdelines. unless otherwise indu.:aled
.1.2 l.imill'd Intl'rnalit)nal RiddinJ.:
Lunlled ImeOlational Bidding (LIB) i') e.,~ntially ICB (or
1("11 Me) hy three! 1Il\ ilalion Without open advertisement. It
may he an appropriate method of procur..:!ll1cnt where (i) the
contract \ alues an: small. or (ii) there IS only 1\ limited number of
supplier.;, or (iii) other e'(ceptionnl reason .. may Ju~tify
departure from ICB procedures, such a.s emergency measufC),
nceded lollo\\-Ulg a naluml disaSh,:r. Under LIB. Bcncficiaries
.. hall prepare. and submit to IDB for "no-obJ~tion", n list of
potential <;"upplier.; and contractor-. from eligible Mcmber
Countries or non-member countries a .. the ea ..e may be. broad
enough to assure competitivc prices. ,uch list to include all
suppher-.contmeton; whcn there (Ire only a limited number.
In illl respects other than ad\ertisemcnt, leB and ICllMC
prOl:c!durc!s ~hall apply, including submi,.,ion of the draft
hidding documc!nts 10 lOB for "no-objeclu,n"
.1 ..1 'ational ("ompetitiH' Biddinc
3.3.1 Natmnal Competitive Bidding (\CB) IS the competitive
bidding procedure nomlall)" u..cd Illr puhln.; pnx:url.'mcnt in the
country of the Bencliciary. and llIay lx' the 010..1 cllicient and
cconorTllcal \\ay of procuring good .. or \\orl.s \\hcn. by their
nature or 'cope. they arc unlikely to attract l"tlfo.:ign competition
hcc;lu.,e·
 i. the contract values ure relatively smaJl:
ii. works are scattered gcogmphically or spread over time:
iii. works are labor intensive. or
tv. the goods or works arc available locally at prices below the
international market and adequate in temlS of efficiency and
prompt delivery.
3.3.2 NCB proc("'(!UTCS may also be used where the advantages
of ICB or ICB/Me arc clearly outweighed by the administrative
or financial burden involved. To be acceptable for use in IDB-
financed procuremcnL NCB procedures shall be reviewed and
modified as nccessary to ensure economy, efficiency, lrnnsparency
and broad consistency with the provisions included in Section I
of these Guidelines. NCB will be open to domestic firms only. in
accordance with the criteria described in paragraph 1.7.4 of these
Guidelines.
3.3..3 Adn'rthing und('r i\Cn
Publicution of a Genel1l1 Procurement Notice is not required for
NCB, and adv<:rtising may be limited to the national press or
official gazette. The Special Procurement Notice shall be
advenised when the bidding documents are aVllilablc for interested
bidders, al leasttwiee on two non-consecutive days within a span
of \ ' days in at least one widely circulated national newspaper in
the country of the Beneficiary <llld the official gazelle. The Notice
shall contain infonnation concerning the Beneficiary. the scope
and purpose of the project and the amount, the name. telephone
or fax number and address of the Beneficiary or the Beneficiary's
Agency responsible for the procurement. and the website and
e-mail address. ifavailablc.
3.3,4 LS<! of Bidding Document" under "CD
TIle IDB standard bidding and contracl documents shall be used,
and sh<lll specify the languages that shall govern for national
bidding. If prepared in a national language different from the
three official languages of lOB (Arabic. English or French). lOB
shall be provided with a fomlal translation. The currency of the
Beneficiary's country is generally used for the purposes of
bidding and payment. Adequate response lime lor preparation and
submission of bids shall be provided. The bidding procedures shall
provide for adequate competition in order 10 ensure reasonable
prices. and shall olherwisc be the same as lor ICe. The award of
cont.mct shall be published in II local newspupers or the official
Gazette.
3.4 IntcrnaliOllal or ~alional ~ho(lpin~
3.4.1 Shopping is a procurement method comparing wriucn price
quotations obtained from sevei'd! suppliers (in the case of goods)
or from several domestic cOlllmctors (111 the case ofsmaJi works).
following wriHen TCCluL':!>\S fbrquotations lrolll a minimum of at least
three suppliers or contractors to assure competitive prices.
3.4.2 This mcthod is appropriate for procuring readily available
ofT-the-sheif goods or standard specification commodities, or
simple local civil works, that arc small in value. Requests for quota-
lions rorsmall valuegoodssl1a11 be issued in writing to at least three
reputable suppliers, and at the international level to at least three
reputable suppliers in at least two diftcrcnt Member Countries.
Requests for quotations for small civil works shall be issued to
at least three reputable domcstic contrJctors. The requests shall
state the lOB financing source, the payment temlS, provide for a
reasonable time to submit quotations (between 10-30 days), and
indicate the time and place of opening.
3.4.3 Quotations for goods shall indicate the description,
technical specifications and qWlIltity and cost oCthe goods. inc hLding
the cost of inland tmnsportation and insumnce as the case may be,
as well as the estimated delivery time ifnOl immediately available.
Quotations for worksshall inc lude the necessary drawings. estimated
quantities, ancl completion time. Quotations shall be given in
writing ancl may be submitted by telex or facsimile. Quotations
shall be opened at the same time and read (lut in public before the
sol ieited suppliers or contmctors or their representatives, if present.
and evaluated and cornpan.:d at the same time. TIlis procw-emcnt
method shall be agreed between IDB and the Beneficiary in the
FinancingAgrecmcnt.
3.4.4 TIle analysis and rccommend1tion for HWard shall be recorded
in a brief evaluation repon. signed by the Beneficiary, which shall
be copied to IDB. Purchases below a monetary threshold set in the
Financing Agreement lllay be carried out without prior "no-objec-
tion" oflDB.
3.5 Direcl Contracting
Direct contracting or single source bidding without competition
involves dealing with a particular supplier or contractor and may
be allowed in the following situations. subject to prior approval of
IDB,
1. When buying Slllall or ofT-the-shd r items of small value.
ii. When standardization i~ imponant and equipment and spare
parts required for expansion or repair or e.-.:istillg equipment
must be procurecl from lhe original supplier or IrolTI 3. supplier of
ident.ical goods.
iii. When tile equipment is proprietary in chamcter and is
obtainable only from one supplier.
iv. When the contmetor responsible for a process design requires
the purchase of critical itcms rrom a particular supplier as a
condition of thc pcrf(lnnance guarnntee.
v. When, aftcr the item!> originally cmisaged lor the projcct have
been procured through ICB. 1I1l additional quantity of the same
items is urgently n(."Cded 10 meet the n.'quirements of the project.
and when lOB c:m be satisfied th:lt there is no advantage to obtain
thcse items through leB or NCB:
 H Whell the ci\il \\orh to be undertaken arc a natural
extcn-,ion of an carlicr or ongomg Job. lor which the
cOrTc~ponding contract had been awardcd follo",mg
intcmational or national cump:titl\e blddmg satisfactory to
lOR. and \~hcn it can be sho\\n to the sat"faclion of lOB that
the engagement of the same contractor will be morecconomieal
than nunnal bidding. and will ensure compatibility of rcsult~
in tenns of quality of work.
vii. In exceptional cases, such a!lo III rcspon..c to a natural
disa~tcr .

.16 Forn° \eeounl

.l6.1 Force Account'9 invohes the u~e oflhe Bcncficiary's own
work forcc. eqUipment and other resources in carrying out civil
\\orks. This melhod IS emplo)cd in c\ceptional eircum.!.lance~:
I. when Ihe SI!"C. nature and 10l.:31ion ofthc works arc small and
~caltcn.'d or ill remotc areas for which 4ualified contractors arc
unlikely to bid.
ii. ",hen thc quantltlCs of work cannot be defincd III advancc,
iii when ongoing works arc inlcmlpted due to breach of
contr<lct or contractor failure and need to be c~mtinued 10 avoid
serious damage. or
i\ . ,\hen there arc emergencie~ reqUIring. immediate attention
like III case of natural disaster.
.1.6.1 IDB need~ 10 be sati:-.lled that the Beneficiary's
constru!;tion fa!;ilities arc .Idequatc and ellicient. and that
the Bcneficiary has the capability 10 undertake the worh
expeditiou!loly and at rca~nable co~1. In ca~cs \\ here the
Implelllcntms Agcncy is dl~tinct frolll the F'(f,,,~uling Agency,
the two ~hall enter into a commci for Ihc exceutitm ofthc works,
'\ihich shall hnc the prior appro\'al of IDB
.',7 Contlnunil!>' Participation
Where, in the mterest of projl."Ct sustainabilily. or to aehie\c
certain ~pe(;ilic \(!Cial ob)C(;tl\es of Ihe projl,.'t:l. it is desirable
to Ii) call for the participation of local cOlllmunities and'- or
non-gmcmmcllial organil"-ntiom II"U(h) in the dell\c!)
of !,!o('"II.h and .... ork~. or (ii) increase Ihe utlli/ation of local
kno ..... -how and Illillcrials. or (iii) elllploy labor-inten~i\e and
other appropriate Icdmologie!;, the procurcment procedures,
~pccificiltions,lInd contract packaging shall llC suitably adaptcd
tn reflect these consideratiom, pro\llled these are efficicnt.

.\ J<;1 • .:mm~111 ....."n.:d .·('lblru.:llon unIt th.al IS ""l JllaIt.1Jl.""'II~ and tiMn·
nl1ty aUr01WITlI.lI,h _hall be (MNl.krt.... a ·h>f(.' ~ll(lllni unll
4. SPECIAL PROCUREMENT ARRANGEMENTS
4.1 Use ofProcurcment Agents and Management Contractors
Where Bcncficiafl~ lack the nCCC'<i\ary organization,
resources. and experience. Bcneficiaric!i. may \\ Ish (orbc required
by IDB)tocmploy. as Iheiragcnl. a firm sJX,.'Cializmg In handlmg
intemational procurement. The agent shall strictly follow
all the procurement proccdurc~ outlined in the Financing
Agrccrncl1I on bchal r ofthc Beneficiary. including the uscarll)B
Standard Biddmg Documents, review procedures and
doculllcnlntion. Management contractors may be employed In
II ... imilar manner for a fce to contract for rni .. ccllancous ,\-orks
10 .. 01\ ing rccoll'.truction. repairs. rehabilitation. and new
constructions in emergency silualions. or "hcrc 131l:!c numbers
of small contracts arc imolscd. If this procedure is funded
by IDB, IDB's Guidelines for thc Usc of Consultants shall
be uscd to acquire the ser.'icc~ of the Procuremcnt Agent or a
Munagelllcnt Contractor on a competiti\ e ba"I~.
4.2 In\pc«:tion \~cnh
Prcshlpmcnt inspection and ccrtific;lIioll of imports is one
of Ihe <;afcguards for the Bencliciary. particularly wherc the
country ha~ a largc import program The IIIspcction and
ccnifkallOn u,ually CO\Cr'S (Juality. quantity and reasonable-
nt'SS of priel' Import .. procured through oJ1Cn or limited ICB
procedures shall nol be subject to price \erifkalion, but only
verlficallOn lor quality and quantity. 1I0we\cr. import!! not
procured through open or limited lell lIlay additionally be
subjected to prH..:c ... crifieation. The i",.peelion agents arc
ordinarily flaid lor on a fee basi~ le\icd on the valuc of the
goods. COSI .. for certification ofimpons ~hull not be con ... idcred
In Ihe evaluation of bids under oren or limited ICB.
4..1 '·ro..:un'mtnl in l.oans to Hnllnciallntcrmcdiarics
Where Ihe Financing Agreement prO\. id~ lor the u...c of
lOB fund!! Ihrough an intCnllCdiory inMitution such as an
agricultural credit inslitution or a de\c1opment finance
company, 10 be used by Bcncficiari~ such as private
'cclor enterpri...e~. or autonomous cQmmcrc131 entcrpri<;cs In the
public ~cctor for the panial linaneing of subprOJect!;, the
procurement is usunll) undertaken by thc rL'S]ll.'CtIVC Beneficiaries
in accordance with established local pri\latc \L'Ctor or commercial
practices, \"hich shall be acceptable to IDB. lIowc\cr, e\en in
these ~ltU;ttlons, o[lCn or 11l11itoo le13 may be the more efficient
and economic procurement method for the purchase of large
single items or in C3... e~ where large qU;Jnlltlcs of goods can be
grouped togcthcr for bulk purcha,ing.

(iUllldlllL" for Procun.:mcnt of (IOO(f..; and \\ork, ~~

4.4 Proeurcmcnl under ROT and Similar rrh'ate
Seelor \rranJ:cmcnl\
Where IDB is panicipating In financing thc cost of a project
procun..-d under a BOO BOT BOOT~' or Similar type of pri-
\'ale sector arrangement. either of the following procurement
proccdure~ ... hall be used. as set fonh In dewil In the Financmg
Agreement
(a) The entrepreneur under the BOO, BOT'BOOT!I or similar
type ofcontraet shall be selected under les Of LIB procedures
acceptable to lOB. which may include several siages in orUer
to 3rri\e at the optimal combination of evaluation criteria.
such as the co... t and magnilUde of the finanCing offered. the
rerfonllance s~ifications of the facilities offered. the co... t
eharged to the user or purchaser. other income generated for
the Beneliciary or purchaser by the lac.lity. and the period of
the lacility\ depreciation The said entrepreneur selected in
this manner ..,hall then be free to procure the goods. "" orb
and sen ice... requin.-d for lhe facility from eligible sources.
using its own procedures. In thi ... C;lse. the Financing
Agreemcnt shall specify Ihe t)-pe of expenditures incurred
by the said entrepreneur towards which IDB financing will
apply.
0 •.
(b) If the said entrepreneur ha!<o not been ... clected in the
manner ...et fonh in subparagraph (a) abO\c.thc goods. works
or ...en ICCS required for the facility and to be financed by lOB
shall be procured in accordance With oren or limited ICB or
Ll B procedures.

noel Build. (~-.. O",.T"dIC. DOT Blnkl. O"':'31~. Trm.,h:r. BOOT BUlltl,
O... n.Orl<:r..l.... tr.. n,lCT"
For I'f'I'JC\:1l ,u(h a. ltlll roatl~. lunndli,. ham.,uf). IIntl!:" 1"<1""" SUIIOll.....
... .a.I... tli~",""'l planl.•. IIntl ... 31cr tll.lnbUI1"n ,)",·mt.
ANNEXA
Category "A" Projects

I Schools
2 Education centers
3 Hospitals (civil works)
4 Health centers
5 Omce buildings
6 Paved roads
7 Rural and gravel ro.'1ds
8 Pavements (ports, cold storage areas, etc.)
Minor electrical installations (33KV and below)
9 including sub-stations less than 1000 KVA and low
voltage systems.
Electrical transmission Jines less than 220 KV not
10
including sub-stations.
Installation of minor steam and diesel generation
II
plaots up 10 5MW per unit.
12 Minor and main canai!'j
13 Irrigation schemes- Field distribution system
14 Main irrigation watcr control structures
Bridges of span not e.'(ceeding 30 meters (reinforced
15 concrete bridges and steel girder bridges) up to a
IOlal1cngth of500 meters.
16 Stores llncl storage arcas.
Water tmnsmission lines including main transmis-
17
sion lines and distributionlillcs
IR Airstrips
19 Sewerage lines
Boreholes for water and gco-physical surveys up to
20
3000 fl'C!.
Earth and Concrete Dams up to [I height of 30 meters
21 abovc fOllndalion und a IOtul storage capacity not
exceeding 150 millions m3
ANNEXB
Catcg0'1 "8" Projects

Eanh nnd Concrete Dams up to a height of more

I than 30 meters above foundation and n total storage
capacity exceeding J 50 millions 013.
Major power plants - generation ofclectricity from
2
units grealer than 5MW each
3 Viaducts
220 KV transmission lines or above. and Illlljor
4 electrical distribution system capacity of substation
more lhan 1000 KVA
Major power SImians lOla 1generation 50 MW and
5
above
Major bridges with spans greater than 30 meters and
6 with comple.; foundations or super structures) up to
Ulotallcngth of more lhan500 meters
7 Telecommunication system
8 Pons and harbors
9 Treatment plants (waler and sewerage)
10 Tunnels
Railways pemanent way rolling stock (wagons.
II
prime movers. locomotives. coaches)
12 Towers (water and high rise buildings)
13 On:shorc structures
14 Deep Boreholes greater than 3000 n
15 Factories
16 Buildings for industrial plants
17 Water desalination plants
18 Oil refineries
19 Fertilizer planLS
20 Mining Projects
21 Pctroclu.:micaJ installations
22 Oil lind gas pipelines and pumping stations.
ANNEXC
Review by 108 of Procurement Decisions
Schedulin~ or Procurement
1. IDB shall review the procurement arrangements proposed
by the Beneficiary, including contract packaging, applicable
procedures. and the scheduling of the procurement process.
for its conformity with these Guidelines and the proposed
implemCnl3lion program and disbursement schedule. The
Beneficiary shall promptly inform IDB of any delay, or other
changes in the scheduling of the procurement process, which
could significantly affect the timely and successful implemen-
tation orthe project CQnlmels. and agree with IDB on corrective
measures.
Prior Rnicn
2. With respect \0 all ConlruC\S above the amount indicated
in the Financing Agreement!: • that are subject 10 IDB's prior
review:
• In cases where prcqlmlificUlion is used, the Beneficiary shall,
belore prequnlific<ltion submissions lI!'e invited, furnish IDB
with the dran documents to be used, including the text of the
invitntion to prcqulllify, thc prequnlificlltion questionnnirc, and
the evaluation melhodology. together with a description of the
advertising procedures 10 be followed, nnd shall introduce
such modifications in said procedure and documents, as IDB
shall reasonably request. Subsequently, the Beneficiary shall
furnish to IDB for ils comments the report evaluating the ap-
plications it received, the list of the recommended prequalified
bidders, together with a statement of their qualifications and
of the fCasons for the exclusion of any applicant for prequali-
fication. The Beneficiary shall furnish this infonnalion to LDB
before the applicants nrc notified of the Beneficiary's decision.
and the Beneficiary shall make such ndditions to. deletions
from or modificmions 111 the said list as IDB shall reasonably
request.
• Before bids arc invited. the Beneficiary shall furnish to IDB
for its comments, draft bidding documents. including the
invitation to bid: instructions 10 bidders. including the basis
of bid evuluation (md contract award; llnd the conditions of
contract and specific3! ions for supply of goods, or installaLion
of equipment. or the civil works, as the case may be. together
with II clescliptioll of the udvcnisillg procedures to be followed ror
the bidding (if prequalifieatiol1 has not been used). and shall
make stich modifications in the said documents as IDB shall
reasonably request. Any further modificat10n shall require
ID8's approval before it is issued to the prospective bidders.

l.1hc Fin:mcmg Agrccmcm may I",,,id<: lhat for l"OUU'!l<.1., up 10 an lIrnounl 10 be

specified In lhe hn.~ncl[lg Agn.'I.'I1'>Cnl. lhe !knelicllll}' =y proct."ed ",;Ih lhe 3p-
prllprialc procul'I.'mCnl procedure \~nhOUllhc prior review oflDB. up 10 the stage of
conlracl nwnrd. At thaI ~Ill~t'. IDB wi!! n:ct'il e the nunuu:s of OJX'11lng of the bIds aoo
lhe bid claJualion n:pon 10 d.;1 •."mnc if lhe cI'alualiull proo..·I!'dUfl: is In confomnl)
II ilh rOB" GtuJo:IiIll.... 31KIlhc Qmlmd l'illl tIC UII.LIlk.'tl and 'igno...J lIS proptll>t'd bi
lilt' Bo..'ndicl'll)

GUlJdtlll':", I'll! Pttll.,:Ul!.:t11cnt llf(jlllld ... and \\nrk... :n

 • For the eV<lluation of bids. the Beneficiary shall use IDB's
Stand3rd Bid E\aluation Report.
• After bids have been received and evaluated. the Beneficia-
ry shall. before a final decision on the award is made, fur-
nish to IDB in sufficient time for its review. a detailed report
(prepared. if IDB shall so request, by experts acceptable to
[DB). on the evaluation and comparison of the bids received,
together with the recommendations for award, the draft
c:ontrac:t submitted by the lowest evaluated bidder, and such other
infonnutionllS IDB shall reasonably request.
'IDB shall. ifit detennines that the intended award would be
inconsistent with the Financing Agreement. promptly infoml
the Beneficiary and state the reasons for such delennination.
Otherwise, IDB shall provide ils "no-objection" to lIle draft
contract and authorize the Beneficiary to proceed with the
award and the signature of the contract. The Beneficiary shall
confirm the 3ward to the selected bidder.
• If the Beneficiary requires an extension or bid validity to
complete the process of evaluation, obtnin necessary approvals
and clearances rllld to mllke the aWilrd. it should seek IDB's
prior approval for the first request for extension, if it is longer
than 45 calendar days. and for all subscquent requests for
extension. irrespective of the period.
• If the Beneficiary receives protests or complaints from
bidders about the evaluation, the Beneficiary shall sent a copy
of the Bencficiary's response to IDB for information.
• The tCnllS and conditions of a contrllct shall not. without
IDB's prior approval. materially dirrer from those on which
bids were asked or prequalification of contmctors was carried
out, if this was the case.
o One cOllfomlcd copy of the contract shall be fumished 10

lOB promptly after its signing with the first application for
withdrawal of funds from the lOB Financing in respect of
such contract.
• The description and amount of the contract, together with the
namc and address of the successful bidder, shall be subject to
public disclosure by lOB upon receipt by lOB of the signed
contract.
Amendment\;. \lodificlltions or Extensions
3. Bellm: grunting a material extension of lhe stipulated time
lOT performance of a contract, agreeing to any modification or
waiver orthe conditions OfSllCh contract, including issuing any
change order or orders under such contract (except in cases
of extreme urgency) which would in aggregate increase the
origin31 amount orlhe contract by more than 15 percent of the
original price.the Beneficiary shall request IDB's prior approval
on the proposcd extension, modification. or ch3nge order and
the reasons therefor: If lOB determines thaI the proposal
would be inconsistent with the provisions of the Financing
Agreement, it shall promptly infoml the Beneliciary and state
the reasons for its detennination. A copy of all amendments to
the contract shall be furnished to IDB for its record.
Posl Re\iew
4. For all contracts nOI governed by p.1rdgraph 2, below a monetary
threshold specified in the Financing Agreemcnt. the Beneficia-
ry shall furnish to IDB. promptly after its preparation, the bid
evaluation repon and recommendation for contract award, for
ID B's comments ('Jnd "no-objection". JOB will review such
documents to verify the compliance of the evaluation and award
procedure and to detennine if the Beneficiary can proceed 10
cOntract award.
5, IDB shall. if it detemlincs that the award of a contract
or thc contract it."elf is not consistent with the Financing
Agrcement. promptly infoml the Bcneficiary that paragraph
1.12 of the Guidelines on mis procurement shall apply and state
Lhe reasons for such detenninalioll.
6. In addition. in respect of all signed contracts financed by
IDB. the Beneficiary sh311 retain one conlormcd copy of each
contract during project implementation, and up 10 IWO years
aner Ille closing date of the Finnncing Agreement, and all
document:tlion with respect to each contract, for examination by
lOB or by illdependent auditors. IDB will review if the commel
implementation is in confomlity wilh lOB's procedures and the
provisions of the Financing Agreement. Thc Bcneficiary shall
fumish such documentation to lOB upon request.
Translations
7. If national bidders were penniltcd to submit bids in the
nationnl lunguage. a cenified translation of Ille bid, evaluation
rcpon and the dt:lft contract in either Ar:lbic English or French
shull be furnished to IDB to facilitate the revicw. Such ccnified
translations shall also be fumished to IDB for any subscquent
modificalions of such documents.

(1l11(kl11lCS fl.1r Procurement of(iooJs and \\orks V)

ANNEXD
Guidance "10 Bidders
Purpose
!. ThisAnnc'I; provides guidance to potential bidders interested
in participating in IDB-financed procurement.
Responsibility for Procurement
2. As emphasized in paragraph 1.3 of these Guidelines, the
BCl1cfi!.:iary is legally responsible for the procurement. It
invites, recein;!s. and evaluates bids, and awards the contract.
The Standard Bidding Document and the temls and condi-
tions of the standard contract between the Beneficiary and the
Supplier or Contractor define the rights and obligations or each
contracting party_
lOB's Ro le
3. lOB reviews Ihe procurement procedures. documents,
bid evaluations, award recommendations nnd the contract to
ensure thai the process is carried oul in accordance with agreed
procedures. IlS required in the Finllileing Agreement. Except
for smllJ! contracts (beIO\\ monetllry thresholds specified in the
Financing Agreement) IDB reviews the documents before they
arc issued, as described in Annex C.
4. If at any time in the procurement process (even after the
award ofcomract). lOB concludes that the agreed procedures
were not followed in any material rcspect. lOB may declare
misprocurcment. Ilowcver, if a Beneficiary has awarded a
contract aller obtaining IDS's "no objection." IDB will declare
rnisprocurcrnent only if the "no objection" was issued on the
basis of incomplete. inaccurate or misleuding information
fumished by the Beneficiary. FurthemlOre. if IDB
determinc~ thai corrupt or fraudlllcm practices were engaged in by
rcpresentalhes of the Beneficiary or of the bidder. IDB may
impose the applicable sanctions set forth in paragraph 1.13 of
the Guidelines.
5. lOB publi~hes Standard Bidding Documents (SBDs) for
various types of prncuremenL It is mandutory for the Beneficiary
to usc these documents. with minimum changes to address
country- and project-specific issues. The prequalification and
bidding documents arc finalized <lnd issued by the Bl:neficiOlry.
Information on Bidding
6. InlonmlliOI1 (In bidding opponunitics under ICB may be
obtained from the General Procurement Notice and the Specific
Invitation to Prcqualify or to Bid, us described in paragraph ~.1
of the Guidelines.
Bidder's Role
7. Once a bidder receives the prcquahficution or bidding
document, the bidder should slL1dy the documents carefully
to decide if it canl11cct the technical. commercial and contractual
conditions. and if so, proceed to prepare its bid. The bidder
should then critically review the documents to see if there
is any ambiguity. o111ission or internal contradiction. or any
feature of specifications or other conditions which are unclear
or appear discriminatory or restrictive: if so, it should seek
clarification from the Bencfieillry. in writing, within the time period
specified in the bidding documents for seeking clarifications.
8. TIle criteria and methodology for the selection of the
successful bidder arc outlined in the bidding documents, generdlly
under Instructions to Bidders and Specifications. If these arc
not clear, clarification should be similarly sought from the
Beneficiary.

9. In tllis connection, it should be emphasiLcd that the specific

bidding documents issued by the Beneficiary govern each
procurement. If a bidder reels that any oflhe provisions in the
documents are inconsistent with the Guidelines. il should also
raise this with the Beneficiary.
10. It is the responsibility of the biddl!f to IIssure submission
of a fi.tlly rcslXlnsive (md compliant bid. including all the supponing
documents requested in the bidding documents. Noncompliance
wilh crilictll (tcchllicnl and c01l1mcrcinl) requirements will result
in rejection of the bid. If a bidder wishes to propose deviations
to a noncritical requirement. or propose tln altcrnathe solution,
the bidder should first quote the price for the fully compliant
bid lind then sepllrately indicate the adjustment in price that can
be oftered if the de\ ialion or alternativc solution is accepted.
Once bids are received tlnd publicly opcned. bidders will not be
required or pemlitted 10 change the price or substance ofa bid.

Confidcntialit)
II. The process of bid evaluation shall be confidential until the
award is notified to the successful bidder. This is essential to
enable the Beneficiary 1H1d IDB reviewers to avoid either the
reality or perception ofirnpropcr interference. lfduring evaluation.
a bidder wishes to bring additional inlormation to ihc notice of
the Bcncticinry. IDB. or both, it should do so in writing_

Action by lOB
12 Thc Beneficiary is responsible jor the selection and aWHrd
procedure and bidders should address themsclves to the
Beneficiary for any queries. issues and possible grieves.
Ilowever. bidders arc free to sl!nd copics of their commu·
nications with the Beneficiary to IDB. II is recommended
that they only wnte to IDB directly, when the Beneficiary
docs not respond promptly. When the cOll1munication
concerns a complollll agai tlsl the Bcncticiary, such complaint
should first be Introduced 111 \\ritll1g to the Beneficiary.

(jUllkltl1~~ I(lr PnlL"lIll'I1H:nt (lr(iood~ and \\orb 41

If IDB receivcs a copy of a complaint. it will forward the related
correspondence to the Beneficiary requesting that it take the
necessary action and keep IDB infonned.
13 References received by lOB from potential bidders, prior to
the closing dale for submission of the bids. will, ifappropriate,
bc referred 10 the Beneficiary with IDB's comments and advice.
for action or response.
14 Communication received by IDB from bidders aner the
opening of the bids, will be senl to the Beneficiary for due
consideration and appropriate action. Besides acknowledg-
ing receipt of communications. IDB shall not enter illto any
discussion or correspondence with any bidder during lhe
evaluation nnd re, iew procedure. until award of tile contract is
notified. IDB shall examine the communication only when it
has first bcen sent to the Beneficiary. In consultation with the
Beneficiary. lOB will determine if il needs additional information
or clarification. and shall request it frOIl1 Ihe Beneficiary only.
lOB shall ask Ihe Beneficiary to comlllent on or incorporate it,
as appropriate. in the evaluation report. IDB's review of the
evaluation and award procedure will not be completed unlil the
Beneficiary has fully examined and considcf\.'(! the communication
and replied to ii, with copy to IDB.
Debriefing
15 If: alier notification or award. a bidder wishes to
ascertain the grounds on which its bid was 1101 selected, it should
address its requesl to the Beneficiary. If a discussion is arranged.
only the bidder's bid can be discusscd and not thc bids of
compctitors.
Guidelines for Procurement
of Goods and Works
Under
Islamic Development Bank
Financing

MAY. 2009

Islamic Development Bank