The document provides guidelines for procurement of goods, works and consulting services for projects financed by IFAD. It outlines the key responsibilities and principles of procurement which emphasize economy, efficiency, fairness and transparency. It describes the different methods of procurement for goods, works and consulting services and the processes that should be followed, including eligibility rules, advertising of bids, evaluation criteria, and contracting.

1. IFAD Procurement Guidelines (as amended by EB in December 2004) Dec 2010

2. General

5. Responsibilities under the Agreement establishing IFAD Art 7.1(c) Use of funds for the purposes intended with due attention to economy, efficiency & social equity Art 7.2(j) Appropriate preference to experts, technicians & supplies from developing countries Borrower is responsible for Project implementation; IFAD must ensure:

9. Eligibility Rules Change from September 2010: Goods, works & services provided by firms & individuals no longer have to be from IFAD member countries Pre – or post – qualification not to be denied for reasons other than capability and resources

12. Joint ventures Encouraged IFAD does not accept joint ventures to be made mandatory

16. Procurement of Goods & Works

18. Part B – Procurement of Goods & Works Suited to high-value requirements International business community are interested in participation Provides all eligible bidders timely & equal opportunity to compete

47. Force Majeure Failure to perform is not considered a default If it is due to an unforeseeable event (force majeure)

50. Procurement of Consultancy Services

70. Selection of Particular Types of Consultants Selection of UN agencies as consultants Advantages neutralized for evaluation/ comparison (borrower may accept granting immunities/privileges, tax exemption, special payment terms provided these are neutralized in competitive selection) Use of Civil society organizations (CSOs) Non-profit organizations. For community participation projects, with special local knowledge requirements, short-list may be all CSOs Procurement agents (PAS) To be selected using QCBS procedures with cost being given a weight up to 50%. Usually paid a % of value of procurement handled, or combination of % and fixed fee. When PAS provides advisory services/ acts as “agents” for a whole project, payment made on a time basis Inspection agents To be selected using QCBS procedures with cost being given a weight up to 50% & using a contract format with payments based on a percentage of the value of goods inspected and certified Auditors To be selected according QCBS with cost as a substantial selection factor (40 - 50 points), or by “least-cost selection”; LCS may be used for very small assignment Service delivery contractors Frame work contracts. (For hiring large numbers of social workers with defined qualifications & employment terms)

73. Review by IFAD

79. Procurement of Goods & Works with Community Participation

83. Quantity and Value of Procurement Once the goods, works & related services to be procured are identified, estimation of quantity of goods & amount of works & services is critical for procurement planning & preparation When quantities to be procured are undetermined until project implementation (demand-driven), it may be permissible to allocate funds out of the loan as “undetermined procurement”

85. Thank you