Multilateral Development Banks in an Era of Procurement Reform: How Larger Development Goals are Shaping Revamped Approaches to Procurement

The Government Contractor, Vol. 58, No. 14, 2016

4 Pages Posted: 11 Apr 2016

See all articles by Collin D. Swan

Collin D. Swan

George Washington University - Law School; Office of Suspension and Debarment, The World Bank

Sati Harutyunyan

George Washington University - Law School

Date Written: April 6, 2016

Abstract

Last year was momentous for the international procurement arena, as several of the major multilateral development banks (MDBs) — including the World Bank and the African Development Bank (AfDB) — adopted significant changes to their procurement processes and procedures in efforts to increase flexibility and achieve value for money with integrity. In July 2015, the World Bank’s board of executive directors approved a new procurement policy as part of a larger procurement framework described as “a once-in-a-generation systematic reform and culture change” in how the World Bank approaches procurement. The new procurement framework, which is scheduled to go into effect later this year, will affect more than 1,800 World Bank-financed projects in 172 countries with a total value of $42 billion, although ongoing projects will continue to operate under the existing framework.

A few months later, in October 2015, the AfDB joined its global counterpart in adopting similar changes to its own procurement framework. Similar to the World Bank’s new framework, The AfDB’s reforms focus on “the achievement of value for money by borrowers based on a dynamic and differentiated fit-for-purpose approach to procurement transactions.” According to Vinay Sharma, the director of the AfDB’s Procurement and Fiduciary Services Department, the AfDB’s new procurement framework is expected to result in faster project completion and “over $200 million in economic benefits annually.”

This FEATURE COMMENT highlights several key goals of these procurement reforms, which seek to deliver sustainable development and value for money by, among other things, increasing flexibility in procurement approaches and recognizing the importance of postaward contract management in ensuring successful project implementation.

Keywords: public procurement, government contracts, international procurement, contract management, contract administration, development goals, procurement reform

JEL Classification: H57, H1, K33, K23

Suggested Citation

Swan, Collin D. and Harutyunyan, Sati, Multilateral Development Banks in an Era of Procurement Reform: How Larger Development Goals are Shaping Revamped Approaches to Procurement (April 6, 2016). The Government Contractor, Vol. 58, No. 14, 2016, Available at SSRN: https://ssrn.com/abstract=2760059

Collin D. Swan (Contact Author)

George Washington University - Law School ( email )

2000 H Street, N.W.
Washington, DC 20052
United States

Office of Suspension and Debarment, The World Bank

1818 H Street, NW
Washington, DC 20433
United States

Sati Harutyunyan

George Washington University - Law School ( email )

2000 H Street, N.W.
Washington, DC 20052
United States

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