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World Bank procurement in the USA

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(Last updated: 7 Jul 2008)

Trends and opportunities

The market

The World Bank provides loans and credits to developing countries, which generate up to 40,000 project procurement opportunities in civil works, goods procurement and consulting services.


World Bank projects cover a broad range of sectors and regions, with key operational topics including:

  • AIDS and debt relief: heavily indebted poor countries
  • Education and training
  • Energy and environment
  • Financial sector and governance and public sector reform
  • Health, nutrition and population
  • Information and communication technologies
  • Infrastructure and poverty, social development and urban development
  • Private sector development and rural development and agriculture
  • Water supply and sanitation

World Bank procurement is segmented into three principal types: civil works, goods and consultancy services.


World Bank procurement offers a valuable entrée into emerging markets on familiar public procurement terms. World Bank experience is an impressive addition to a company's capability statement. In this environment, prior international development experience is essential.


The World Bank's strategic priorities in assisting economic development influence major trends in World Bank procurement business. The Bank's strategic direction is informed by global priorities outlined in the Millennium Development Goals and specific sector and country assistance strategies.

Opportunities

Current trends relevant to commercial opportunities for Australian firms include the growing significance of least developed countries in the Bank's portfolio. These countries are those receiving International Development Association (IDA) assistance and include World Bank client countries in Australia's traditional Asian markets (eg. the Mekong region) as well as new regions of World Bank business opportunity (eg. sub Saharan Africa). From a sectoral perspective, the Bank's strong commitment to social sector lending and development is ongoing.


Emerging key trends include a refocusing of the Bank's attention towards middle-income countries. This refocus has an impact on many of the Australian firms' traditional clients in the East Asia and Pacific region. From a sectoral perspective, the re-emergence of infrastructure — considered a key element underpinning Millennium Development Goals — is one to watch, especially in the East Asia region.

Competitive environment

World Bank procurement is open to companies from more than 180 member countries of the World Bank Group. As such, World Bank procurement is highly competitive.


Australia's strongest competitive advantage historically has been in providing consultancy services to World Bank Group operations. Regionally, Australia's strong performance is attributed to a high level of technical and policy expertise. The bulk of Australia's success has been in East Asia and the Pacific.

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Tariffs, regulations and customs

Goods and services provided to World Bank operations are subject to the tariffs, regulations and quotas of the individual borrowing country.

Industry standards

World Bank contracts are let according to a public procurement process. The World Bank Guidelines for the Selection and Employment of Consultants and the Procurement Guidelines govern World Bank procurement for consultancy services and goods respectively.


World Bank operations are governed by the World Bank’s operational policies. While these policies do not directly affect contracting companies, they influence the procurement environment as they place certain requirements on the borrower to ensure a project is economically, financially, socially, and environmentally sound.


These requirements can lead to specific business opportunities (eg. the Bank may require that an environmental impact assessment be undertaken) or they can have an impact on the scope of a World Bank assignment (eg. the outcome of a social impact assessment might determine that a road or rail link should be directed in such a way to minimise the effect on a local community).

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Marketing your products and services

Market entry

The following elements are important in successfully implementing a strategy to market services to World Bank funded operations. This three-part strategy should be applied at both the World Bank (which will be funding the specific operation you are targeting) and at the implementing agency of the developing country government (which will be implementing it and will also be your ultimate client - not the World Bank).


To target specific operations in the World Bank’s portfolio, you should select relevant pipeline and current operations from the Bank’s lending portfolio. A good place to start is 'Projects and Programs' on the World Bank website.


To target specific segments of the World Bank’s lending portfolio (by country, region or sector), based on your company’s prior sectoral and regional experience, you should research current priorities in the Bank’s assistance for 'Countries and Regions' or 'Sectoral Assistance'.


You should also follow up this secondary research with primary research at the World Bank (country office and HQ in Washington DC) and developing country implementing agencies.

To identify specific business opportunities in a World Bank project, you should start with project documents. Once you have selected potential projects or operations to target, you will find that each has a complete listing of project documents that will help you to research specific components of the project that contain potential business opportunities for your firm. 


The 'Project Information Document' is an initial report on a project's parameters. The 'Project Appraisal Document' is a more comprehensive version that is prepared later in the project cycle and ultimately presented to the World Bank board for the loan to be approved. At this point, the World Bank project task manager is a key point of contact to obtain additional information on specific project requirements for international consultants.


To identify specific business opportunities arising from World Bank non-lending operations in specific segments of the Bank’s operations (ie. sectoral or regional) there is no equivalent of the project documents, so the background information will be your primary source of information.


You should also follow up this secondary research with primary research at World Bank and developing country implementing agencies. This will be particularly important for non-lending operations where no project documents are available.

To position your services for both specific operations and segments of the Bank’s operations, you should prepare capability information tailored to the specific operation or segment you are targeting. Your capability information should outline any previous assignments your company has already undertaken in international development – especially any prior work on World Bank projects – and highlight any similar or relevant past assignments.

Once you have completed background research and prepared your capability information, you should express interest to the World Bank task manager, who is responsible for overseeing the project and ensuring it meets its development goals.


You should also express interest to the borrowing country's implementing agency (which is responsible for the project's implementation). The agency will conduct the procurement process and be your ultimate client.


You can effectively express interest to the World Bank and developing country implementing agency by meeting with key officials managing the projects. This assists you to ensure that you understand both the Bank’s and the borrower's objectives and details of individual contracts. Your visits in-country will also provide an opportunity to investigate local market conditions and opportunities to partner to strengthen your bid.

Distribution channels

Products are delivered directly to the borrowing country government in-country. Often a local agent or partner is valuable to provide local content, knowledge and contacts. Local partners are becoming almost essential to win business.

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Links and industry contacts

World Bank Group – www.worldbank.org

Government, business and trade resources for the USA

Development Business Online – www.devbusiness.com
Development Executive Group – www.developmentex.com/index.jsp
Single Window on UN Agencies – www.unbiz.un.int
United Nations Children's Fund – www.unicef.org/children-in-war
United Nations Development Programme – www.un.org/partners/civil_society/m-devel.htm
United Nations High Commissioner for Refugees – www.unhcr.ch 
United Nations System of Organizations – www.unsystem.org

Australian resources

Development Gateway – www.developmentgateway.com.au

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Contact details

The Australian Trade Commission (Austrade) is the Australian Government’s trade and investment development agency, operating as a statutory agency within the Foreign Affairs and Trade portfolio.

Austrade assists Australian businesses contribute to national prosperity by succeeding in trade and investment, internationally, and promoting and supporting productive foreign investment into Australia.

Austrade:

  • Delivers services that assist Australian businesses initiate, sustain and grow trade and outward investment.
  • Promotes Australia as an inward investment destination and, with the States and Territories, supports the inflow of productive foreign direct investment.
  • Administers the Export Market Development Grants scheme.
  • Undertakes initiatives designed to improve community awareness of, and commitment to, international trade and investment.
  • Provides advice to the Australian Government on its trade and investment development activities.
  • Delivers consular, passport and other government services in designated overseas locations.

A list of Austrade offices (in alphabetical order of country) is available.

More information

For further information please contact Austrade on 13 28 78 or email info@austrade.gov.au

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