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Basic Procurement Policies and Procedures of the IDB I. GENERAL 1.1 Purposes and objectives 1.2 Contents 1.3 Importance of procurement 1.4 Corrupt practices II. RULES COMMON TO ALL PROCUREMENT 2.1 Efficient and economical use of Bank resources 2.2 Legal relationships 2.3 Basic responsibilities 2.4 Procurement planning (a) General procurement plan (b) Bidding packages (type, quantity, and amount of contracts) (c) Turn-key contracts 2.5 Eligibility of contractors and goods 2.6 Nationality requirements for contractors for works 2.7 Criteria for establishing the nationality of contractors for works 2.8 Origin of goods 2.9 Transportation and insurance of goods 2.10 Joint ventures between local and foreign firms 2.11 Eligibility of affiliated firms to submit bids 2.12 Procurement with funds from other sources 2.13 Procurement carried out before the signature of Bank loan contracts 2.14 Procedures for global credit programs 2.15 Procedures for special operations 2.16 Procurement not in accordance with Bank policy 2.17 Supervision by the Bank III. INTERNATIONAL COMPETITIVE BIDDING 3.1 Types of bidding; the basis for competitive bidding 3.2 Basic principles of public bidding 3.3 Contracts that require international competitive bidding 3.4 Procurement for amounts lower than the established limits 3.5 Language and interpretation 3.6 Publicity for international competitive bidding (a) General Procurement Notice (GPN) (b) Notices for specific bidding opportunities (Specific Procurement Notices 'SPN') (i) National publicity (ii) International publicity (iii) Content of procurement notices ('SPN') (c) Threshold amounts above which international publicity is required 3.7 Prequalification (a) Nature of the requirement (b) Two-envelope procedure (c) Registration of potential bidders (d) Time frame 3.8 Bidding Documents (a) Clarity and content (b) Price of the documents (c) Free access to the Borrower (d) Standards of quality (e) Specifications for equipment; brand names (f) Currency (i) Currency of the bids (ii) Currency for evaluation and comparison of bids (iii) Currency for payments (iv) Exchange risk (g) Guarantees (i) Bid bonds (ii) Performance securities (h) Margins of preference (i) National margin of preference (ii) Regional margin of preference (i) Criteria for evaluation of bids (j) Reparable errors or omissions (k) Rejection of all bids (l) Protests (m) Contract conditions (i) General contractual conditions (1) Eligibility of expenses for payment with Bank financing (2) Payments (3) Price adjustment clauses (4) Retention of payment (5) Penalty and bonus clauses (6) Force majeure (7) Resolution of disputes (ii) Conditions of particular application 3.9 Invitation to bid (a) Following prequalification (b) Without prequalification (c) Clarification of bidding documents (d) Modification or amplification of the bidding documents 3.10 Opening and evaluation of bids (a) Time between advertising and bid opening (b) Procedures for opening bids (c) Clarification of bids (d) Confidentiality (e) Analysis of bids (f) Comparison of bids (g) Extension of validity of bids (h) Rejection of bids 3.11 Award of contract 3.12 Contract signature 3.13 Local legislation 3.14 Procurement agents IV.OTHER METHODS OF PROCUREMENT 4.1 Exceptions to international competitive bidding (a) Competitive bidding restricted to local firms (b) Limited international bidding (c) International/local shopping (d) Direct contracting (e) Force account 4.2 Exceptions expressly allowed by the Bank 4.3 Goods for education, scientific, technical, and conservation projects V. RULES FOR PROCUREMENT BY THE PRIVATE SECTOR 5.1 Application of policies to the private sector 5.2 Limited bidding 5.3 Special methods of procurement 5.4 Conflict of interest VI. THE PROCUREMENT COMMITTEE AND PROCEDURES FOR SUBMISSION OF PROTESTS AND COMPLAINTS OF CORRUPTION 6.1 Procurement Committee of the Bank 6.2 Other units of the Bank 6.3 Procedure for submitting protests (a) Review mechanisms (b) Submission of protests 6.4 Procedure for submission of complaints of corruption VII. ANNOUNCEMENTS OF LOANS AND BUSINESS OPPORTUNITIES 7.1 Project information 7.2 Announcement of Approved Loans (a) Press releases (b) Project summaries (c) General Procurement Notice (d) Specific Procurement Notice ('SPN') (e) IDB Projects ANNEX GLOSSARY OF TERMS FREQUENTLY USED IN PROCUREMENT