Local Labour

The EBRD's Local Labour Quick Guide provides a concise overview of everything you need to know about Local Labour under the Bank's Procurement Policies and Rules.

Frequently asked questions

Who qualifies as Local Labour?

Local Labour comprises workers who are nationals or citizens of the client’s country and who are employed by the contractor or its subcontractors to deliver a Bank-financed works contract. Foreign nationals – including visa holders, permanent residents, refugees and asylum seekers – do not qualify as Local Labour.

Why use Local Labour requirements?

Benefits include:

• increased local economic participation and job creation
• skills development and workforce capacity building 
• stronger community engagement and project acceptance 
• support for sustainable public procurement and inclusive development
• improved alignment between project delivery and local economic outcomes.

Local Labour requirements are most effective when they are realistic, proportionate, informed by market analysis and Early Market Engagement, and integrated into procurement planning, evaluation and contract implementation.

When should a Local Labour requirement be included in the procurement process?

For works contracts exceeding €35 million, contractors are generally expected to allocate not less than 50 per cent of Total Labour under the contract to Local Labour. This requirement is informed by market analysis and, where appropriate, Early Market Engagement, and must be agreed with the EBRD.

Where justified by project circumstances, a different percentage may be agreed. Relevant considerations may include availability of Local Labour, the specialised nature of the works, project location and market conditions, competing demand for labour and the potential impact on competition or project delivery.

It is important to note that:

• Local Labour requirements should be clearly reflected in procurement documents and contract arrangements, including requirements for participants to submit a Local Labour plan demonstrating a credible and deliverable approach to implementation.
• Rated Criteria may also be used to assess the quality and added value of Local Labour approaches beyond the minimum requirements, including training, workforce development, skills transfer and broader local economic participation outcomes.