The Procurement Principles and Rules are based on the need to achieve economy and efficiency in both public and private sector operations as well as transparency and accountability in public administration. Competition is the proven way to do this and a fundamental principle of good procurement practice.  Fairly applied competitive procedures in awarding public sector contracts for goods, works and services help to create dependable and stable markets for efficient private businesses. They also form the basis for establishing accountability and encourage the cost-effective use of public funds.

 

In private sector operations, the Bank will encourage its clients to use procurement methods that lead to sound selection of goods, works and services at fair market prices and to make their capital investments in a cost effective manner. Careful procurement planning that takes into account the particular needs of the project is essential for the Bank’s evaluation and agreement. Businesses often achieve these aims by following established commercial practices other than formal international competitive tendering for their procurement. Nevertheless, wherever appropriate, the Bank will encourage the use of international competitive tendering methods by private sector clients, particularly for large contracts.