The African Development Bank’s procurement policy, which is outlined in its procurement rules, governs how clients acquire goods, works and services under projects financed by the Bank, and the roles and responsibilities of the Bank and its clients in that process. The changing circumstances of the African Development Bank’s (Bank) Regional Member Countries (RMCs), since its establishment in 1963, had meant that while maintaining exacting fiduciary standards, the Bank also needed to support an increasingly complex set of development objectives. The existing procurement policy had served the Bank, RMCs and bidder communities well in past years, but there was a recognized need for a more responsive and flexible approach given the general perception that the Bank’s Rules and Procedures were too long, prescriptive, complex and indiscriminately standardized, particularly for complex procurement.
There have been several external emerging trends that have had significant impact on application of the Bank’s operations procurement policy, these include: (i) significant harmonization of Multilateral Development Banks (MDBs) procurement policies; (ii) procurement has come to be seen as a strategic function within RMC’s public expenditure management to effectively and efficiently deliver needed services to citizens and the evolution of two concepts ‘value for money’ and ‘fit for purpose’ procurement; (iii) governments increasingly use procurement policies to support socio-economic objectives, such as promotion of local industries and environmentally and socially responsible procurement (ESRP); and (iv) other significant trends include increasing use of electronic procurement and more specialized methods of procurement.
The above trends underscored the need for a new, robust, flexible and more dynamic procurement policy that more fully supports development effectiveness, within an acceptable fiduciary compliance framework. This becomes even more critical, when further consideration is given to the ever increasing expectations of the RMCs, for more responsive and flexible approaches to procurement by the Bank, which tend to be difficult to fully accommodate under the existing Rules. It is in this light that the Bank has decided to undertake a comprehensive and detailed review of its procurement policy.
The need for the review and the approach the Bank is envisaging were established in the Approach Paper on the subject and was further developed in the Policy Framework Paper. The Bank fully recognizes the need to widely consult with all its stake holders and to obtain their comments and views to serve as guidance for the way forward, 35 consultation workshops were held during March and April 2014 in which 37 Bank Member Countries were represented. In addition, the Bank hereby publishes its Policy Framework Paper and invites you to express your views, comments and opinion which you can express by contacting us through the space below.