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The EBRD's Procurement Policies and Rules (PP&R)
The EBRD's Procurement Policies and Rules (PP&R) are based on the fundamental principles of non-discrimination, fairness and transparency. They are designed to promote efficiency and effectiveness and to minimise credit risk in the implementation of the Bank's lending and investment operations.
In their transition to market economies and in applying the principles of multiparty democracy, the countries of operations of the European Bank for Reconstruction and Development need to achieve economy and efficiency in both public and private sector operations, and transparency and accountability in public administration. The establishment of sound procurement policies and practices must be an integral part of the transition process. Competition is the proven way to do this, and it is also the fundamental principle of good procurement practice.
On 6 May 2009, the Board of Directors of the EBRD adopted a revised version of the PP&R which shall be applied to all Bank-financed contracts for which the procurement process was initiated after 6 May 2009.
Should any procurement process have been initiated before 6 May 2009, the old version (May 2007) applies.
Amendment to the May 2009 Procurement Policies and Rules
On 6th May 2010 the Enforcement Policies and Procedures (EPP) of the Bank was approved by the Bank's Board of Directors.
The approval included a revision of Paragraph 2.6 of the Bank's Procurement Policies and Rules to align the PP&R with the revised EPP. The revisions are highlighted below for ease of reference:
2.6 The Bank permits firms and individuals from all countries to offer goods, works and services for Bank-financed projects regardless of whether the country is a member of the Bank. Firms and individuals from developing countries as well as from the Bank’s countries of operations are encouraged to participate on equal terms and thereby assist their own country’s development process. Any conditions for participation shall be limited to those that are essential to ensure the eligible firm or individual's capability to fulfil the contract in question. Clients of the Bank will not exclude a firm or individual from competition for a contract for reasons unrelated to its capability to perform the contract in question unless the firm or individual has been declared, and remains, as at the relevant date, ineligible pursuant to the Bank’s Enforcement Policy and Procedures or unless, as a matter of law or official regulation, the client’s country prohibits commercial relations with the firm or individual's country, provided that the Bank is satisfied that such exclusion does not preclude effective competition for the supply of goods or works required.
Accountability and cost-effectiveness
Open and fair procedures for awarding public sector contracts for goods, works and services help to create dependable and stable markets for efficient private enterprises. They also form the basis for establishing accountability and encourage the cost-effective use of public funds, a matter that is of concern for both the Bank and its countries of operations. Article 13 of the Agreement Establishing the European Bank for Reconstruction and Development requires that:
"(xii) the Bank shall place no restriction upon the procurement of goods and services from any country from the proceeds of any loan, investment or other financing undertaken in the ordinary or special operations of the Bank, and shall, in all appropriate cases, make its loans and other operations conditional on international invitations to tender being arranged; and
(xiii) the Bank shall take the necessary measures to ensure that the proceeds of any loan made, guaranteed or participated in by the Bank, or any equity investment, are used only for the purposes for which the loan or equity investment was granted and with due attention to considerations of economy and efficiency."
Saving time and money
At the level of specific projects, which are the focus of the Bank's operations, the efficiency of the procurement process directly affects the costs and the time required for project execution and the ultimate performance of the operation. Good procurement practices should lead to significant time and money savings for the Bank's clients and help ensure successful project implementation and operation.
The Bank will help countries of operations meet their objectives of achieving economic development and transforming their public administration systems by carefully selecting and designing the projects it supports and by assisting in the development of appropriate institutions that are consistent with the philosophy and needs of market economies. Fostering sound procurement policies and competent organisations to administer them will be an important target in this effort.
EBRD Financing of Private Parties to Concessions
On 1 May 2001, the Bank’s Board of Directors discussed and approved a paper clarifying the Bank’s approach to concession financing and elaborating on the issues involved when the Bank considers financing transactions involving concession or similar contracts awarded to private parties. These issues concern both the process by which the Concession has been awarded as well as the fairness and reasonableness of the Contract terms and conditions. Given the interest in such matters, the Bank is providing extensive extracts of this paper above.
Last updated 13 February 2012
The significant need for investment in infrastructure throughout the EBRD region means that good public procurement regulations are crucial.
Public procurement sector assessment is conducted by EBRD in order to promote sound business practice in its Country of Operations.
Public sector assessment
The core principles reflect the International Best Practice Standards adopted in the Public Procurement Process
Law in transition
Procurement & PPP transactions
Guidance for MDB Public Sector engagements