Cooperation with the World Bank: understanding projects, using dialogue, building cooperation activities
The World Bank Group finances international projects in low and middle-income countries. We show you how to identify business opportunities, establish contacts and position yourself at an early stage for cooperation.
Procurement in World Bank projects
The World Bank provides financing for development projects around the world, investing a considerable volume. At present, its projects account for a total volume of around USD 250 billion. Every year, it publishes around 40,000 procurement opportunities for construction works, the provision of equipment, and for consultancy and services in World Bank-financed projects.
Many of these contracts materialise during the implementation phase of projects. In the early project development phase, contracts are often placed for carrying out studies and advisory services. The greater part of the procurement takes place during the following project implementation, by means of international tenders that are organised by the respective executing agencies in the partner countries.
Alongside the ongoing projects, a large number of new projects are in preparation. Every year, international tenders worth around EUR 11 billion pass through the project pipeline. Many of these investments are for infrastructure projects in the energy, transport and water sectors.
It is therefore often a good idea for companies to find out about planned projects early on and assess ways in which they might be involved.
Katy Schröder
Agency for Business and Development
"Many companies find the World Bank’s procurement systems complex. They can get involved in various ways – as service providers, as suppliers of goods or in carrying out construction work. We use the Procurement Roadshow to raise the profile of innovations, thus leading to their early uptake in projects and helping to position the German private sector."
Changes to the World Bank’s procurement system
In recent years, the World Bank has further developed its procurement system to ensure that projects place a stronger focus on quality, impact and sustainable results. A core part of this reform is the greater consideration given to qualitative criteria in international tenders.
Whereas price has hitherto played the most significant role in many tender procedures, in future minimum quality weightings will apply. These might include, for example, technical capacities, project methodology, sustainability aspects and implementation expertise.
These changes are intended to ensure that complex development projects are more strongly based on technical quality, innovation and long-term results.
Another aspect of the reform is the aim to involve market actors at an early stage. In its larger projects, the World Bank now increasingly pursues early market engagement formats. This means that, before issuing invitations to tender, the bank's specialist departments are in contact with companies to familiarise themselves with the available technologies, solutions and market offers.
This communication can help to define the requirements more realistically and adapt procurement strategies to better suit actual market conditions. It is vital for the inclusion of innovations at an early stage and for ensuring projects are based on robust business cases from the private sector.
Local value creation and sustainable supply chains
Another priority of the procurement reform is the greater involvement of the local businesses and workforce. In some construction projects, at least 30 per cent of the labour costs can be earmarked for local employment.
At the same time, local supply chains and sustainable production methods are becoming increasingly important. Procurement processes might, for example, integrate criteria for energy efficiency or the reduction of emissions along supply chains.
These approaches should help to link development projects more closely with local economic development and long-term sustainability goals.
What are the concrete changes?
Early information on projects
It can be vital for companies to learn about planned investments and project developments at an early stage. Often there is just a limited period of time between the publication of a tender and the submission deadline for bids.
As such, early information about planned projects and investments can provide an important basis for strategic preparations, finding partners and project planning.
An important source of information about international development projects is theplatform of Germany Trade & Invest, where information is regularly published about international tenders and planned projects.
Sectors and cooperation in World Bank projects
The World Bank invests in numerous development sectors worldwide. For many of its projects, which require differing technical, organisational and specialist skills, implementation involves international tenders.
The important sectors include
- Water and wastewater infrastructure
- Waste management and the circular economy
- Energy supply and energy grids
- Healthcare systems and medical infrastructure
- Digital infrastructure and information technology.
Larger projects are often implemented by international consortiums that bring together different competences. These could include construction companies, technology providers, consulting firms and local project partners.
Particularly in complex infrastructure projects, cooperation arrangements play an important role. Companies often work together with local partners or international consortium partners, so as to pool technical, financial and regional expertise.