Multilaterals agree procurement framework

The World Bank has signed an agreement with the Asian Development Bank (ADB) to streamline the procurement framework of co-financed projects.

The new alternative procurement arrangement will designate one multilateral as the lead co-financer on a project, with procurement of the project or parts of it to be conducted under the guidelines of the lead co-financer.

Risa Zhijia Teng, director general of the ADB’s procurement, portfolio, and financial management department, said: “The new arrangement allows co-financed projects to be implemented more efficiently by applying a single framework to the whole project.”

The move is expected to cut transaction costs as well as reduce the burden on procurement agencies by imposing a single framework for specific projects.

Meanwhile, the ADB is negotiating with other multilaterals on how to implement similar agreements.