Project procurement and sustainability

The ability of a project to achieve satisfactory environmental or social outcomes can often be partly dependent on the activities of third parties such as contractors and suppliers.

The Bank’s Project Procurement Department plays a key role in ensuring the environmental and social sustainability standards dependent on third party activities can be achieved.

Although the project appraisal and legal documents will themselves set out many of the environmental and social Performance Requirements for the projects, it is through the procurement, contractor management and supervision process that these can be implemented systematically and effectively.

All EBRD clients are responsible to ensure that any contractors working on project sites comply with the Bank’s environmental and social requirements as set out in the Bank’s Project Requirements (PRs) and in the project-specific Environmental and Social Action Plan (ESAP).

Many projects seeking EBRD finance include at least an element of contracting, particularly when they involve new construction. In such cases, the Bank will, as part of its environmental and social due diligence, focus on the client’s tendering, contractor management and supervision processes and give practical guidance on how environmental and social considerations can be incorporated at the relevant stages of the contracting process.

Clients will also be expected to report on the contractor’s environmental and social performance under the project as part of their annual reports to the EBRD on environmental and social matters.

In 2009, we updated and revised our Procurement Policies and Rules (PPR). The new PPRs include our commitment to integrate environmental and social sustainability considerations in the public procurement process, as appropriate, to ensure compliance with the Environmental and Social Policy.

Last updated 11 May 2010