Operational Procurement vs Corporate Procurement

Over the last couple of months you may have noticed that we have published multiple tender announcements and opportunities on our blog, both under the ‘eConsultant2’ tab and the ‘Projects’ tab. You might be wondering, what is the difference? The difference between the opportunities published relates to the procuring entity. The Corporate Procurement (eConsultant2) is procured by the i-love-procurement2World Bank itself, while Operational Procurement (Projects) is procured by the borrowing countries. With operational procurement, the role of the World Bank is limited to oversight and issuing a ‘no objection’ – the World Bank has an oversight role in this but does not run the procurement process.

Operational procurement

In our article about the procurement review (click to read) it was explained that when the World Bank finances a project in a country, the procurement is the responsibility of the borrowing country. The projects often include multimillion dollar assignments, with the suitors being contractors and subcontractors.

Under the conditions of a World Bank financed project, the borrowing country is subject to the World Bank framework of procurement policies, guidelines and arrangements (which is currently under review). This is to ensure open, transparent and fair competition. Although the World Bank has the role of supervisor to the project and contract award decisions, it is not a party to the actual contract, which is strictly between the borrowing country and the winner of the tender.

Corporate procurement

When the World Bank itself procures goods, works or (consulting) services, it is called Corporate Procurement. These assignments are very often consulting services like sector studies, assessments, or helping out with project designs. If the value of the contract is under $50.000, the World Bank can request CVs of three consultants and select the most fitting offer. If the value of the contract is more than $50.000, it needs to be publicly tendered via the eConsultant2 system. We try to bring these to your attention via our blog, but given the short deadlines and large volume of tenders it would be good to check the eConsultant2 system regularly yourself.

In a previous blog article we listed different websites where all tenders and projects can be found, a regular look at these websites will keep well informed on upcoming and current projects and activities financed by the World Bank! When one of the tenders or projects interests you, do not hesitate to contact us for further information. Additionally, remember to ‘go local’ and contact the local authorities and local World Bank staff, for more information when it comes to operational procurement!

For more information and tips & tricks to winning World Bank tenders, please review the handbook ‘Zakendoen met de Wereldbank Groep‘ (in Dutch).