PROCUREMENT OF GOODS FINANCED WITH SECTOR ADJUSTMENT LOANS
Scope
The following provisions are supplementary and apply to the FAST-DISBURSING
COMPONENT of sector adjustment loans, hereinafter called "sector
loans".
Fast-disbursing resources are used to finance IMPORTS OF GOODS
in one or more sectors of the economy of a borrowing country. A central
agency is responsible for preparing the disbursement documents, while
public or private institutions make the procurement.
Objective
To ensure that the procedures used to procure goods with the proceeds
of sector loans adhere to competitive bidding standards, stipulate the
efficient and economical use of the loan funds, and do not restrict
participation by suppliers in the Bank's member countries.
Basic Guidelines
Disbursements will be made against satisfactory implementation of agreed upon policy and/or sectorial changes, including compliance with any specified tranche releases conditions.
Proceeds of sector loans will be deposited in segregated accounts. The borrower will submit a simple application against which the Bank will disburse the loan proceeds for the borrower's use. The need to make provision for retroactive financing of imports, is no longer necessary.
The Bank will continue to require the borrower to maintain appropriate records of funds disbursed from the loan and may require the borrower to furnish an audited report in respect of any disbursement.
Sector loan contract documents will continue to prohibit use of disbursed funds for purchases of items on the negative list or for purchases from non-IDB members countries.
On a yearly basis, the Bank will report estimated imports from Bank member countries resulting from sector loans. The estimate will be based on the pro-rata shares of all imports made by the borrowing countries form the Bank member countries, appearing in the latest available trade statistics.
In HYBRID LOANS, i.e. those containing fast-disbursing and investment
components, procurement of goods and works for each component will be
governed by the specific rules applicable to each component.
The procurement policy requires the same basic information to be provided
on imports procured from a positive list as from a negative list, but
the Bank's verification and monitoring procedures may vary in each case.
Generally, a positive import list will require stricter verification
and control than purchases imported from a negative list. The Bank will
either consent to the procedure or negotiate the amendments it deems
warranted.
Procurement in the operations referred to herein is limited exclusively
to imports of goods, and therefore no domestic margin of preference
will apply. Borrowers may continue applying the regional margin of preference
should they wish to do so.
Norms
The specific guidelines for the procurement of goods and services under
sector loans are set out in the Operations Administration Manual (OA-900).
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Prevailing
Prevailing Reference Documents:
GP-116-4, August 1990
GN-2001-2, June 1998.
*
The operational policies of the Inter-American Development Bank are
intended to provide operational guidance to staff in assisting the Bank's
borrowing member countries. Over the course of the Bank's more than 40 years of
operations, the approach to developing operational policies has taken
various forms, ranging from the preparation of detailed guidelines to
broad statements of principle and intent. Many policies have not been
updated since they were originally issued, and a few reflect emphases
and approaches of earlier years which have been superseded by specific
mandates of the Bank's Governors, the most recent being the
Eighth Replenishment mandates of 1994.
In
accordance with the Bank's information disclosure policy, the Bank is
making all of its operational policies available to the public through
the Public Information Center. Users please note that the Bank's operational
policies are under a process of continuous review. This review process
includes preparation of best practice papers summarizing experience
at the Bank and other similar institutions, and sector strategy papers.
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