African Development Bank Group and its new Procurement Framework

On October 14, 2015, the Board of Directors of the African DevelopmentBank Group (AfDB) approved the Bank’s new procurement framework. Theneed for a comprehensive revision of the African Development Bank’s twoprocurement policy documents, namely, the “Rules and Procedures forProcurement of Goods and Works” and the “Rules and Procedures for theUse of Consultants” was recognized over the last few years. Though theBank’s existing procurement policy, as outlined in these two Rules, hadserved the Bank, regional member countries and bidder communities well inthe past years, recent trends underscored the need for a more dynamicpolicy and procedures that fully support development effectiveness within anacceptable fiduciary compliance framework. Such trends included thechanging circumstances of the Bank’s regional member countries, whichrequired the Bank to support an increasingly complex set of developmentobjectives and several external emerging factors that had a significantimpact on the application of its operations procurement policy.The key feature of the new framework is the achievement of value for moneyby borrowers based on a dynamic and differentiated fit-for-purpose approachto procurement transactions. This includes the full use of BorrowerProcurement Systems for certain contracts, customized methods andprocedures for more complex ones and third-party systems in other cases.To achieve this, the framework adopts a risk-based engagement withborrowers in which the procurement arrangements incorporated into a Bank-financed project and the accompanying Bank levels of fiduciary oversightdepend on the quality and performance of the procurement system and thecomplexity of the procurement transactions. This dynamic approach, willfurther strengthen the Bank’s position in deepening its support for capacitydevelopment to its regional member countries and at the same time fulfillsuch international commitments as the Paris Declaration and its follow-ondecisions.“The impact of this new framework is expected to be significant,” said VinaySharma, Director of the Bank’s Procurement and Fiduciary Services Department. “We have estimated that this will lead to projects beingcompleted about eight months faster, resulting in over $200 million ineconomic benefits annually. Country ownership will increase and we willhave much greater legitimacy working with borrowers in the improvement oftheir governance systems.“With a large number of contracts being handled through the use ofborrower systems, a sector capacity will be unleashed to handle complextransactions and provide better advice to the countries. Differentiatedprocedures will especially help countries in transition. The focus on socio-economic objectives (including gender issues) will satisfy legitimateaspirations of the countries. The framework will allow for much more flexibleco-financing arrangements with other donors. Use of technology in Africa inpublic procurement will also increase, leading to more transparent, effectiveand efficient use of resources. All in all, this will position the Bank to be thepartner of choice for borrowers on the continent.”

On October 14, 2015, the Board of Directors of the African DevelopmentBank Group (AfDB) approved the Bank’s new procurement framework. Theneed for a comprehensive revision of the African Development Bank’s twoprocurement policy documents, namely, the “Rules and Procedures forProcurement of Goods and Works” and the “Rules and Procedures for theUse of Consultants” was recognized over the last few years. Though theBank’s existing procurement policy, as outlined in these two Rules, hadserved the Bank, regional member countries and bidder communities well inthe past years, recent trends underscored the need for a more dynamicpolicy and procedures that fully support development effectiveness within anacceptable fiduciary compliance framework. Such trends included thechanging circumstances of the Bank’s regional member countries, whichrequired the Bank to support an increasingly complex set of developmentobjectives and several external emerging factors that had a significantimpact on the application of its operations procurement policy.The key feature of the new framework is the achievement of value for moneyby borrowers based on a dynamic and differentiated fit-for-purpose approachto procurement transactions. This includes the full use of BorrowerProcurement Systems for certain contracts, customized methods andprocedures for more complex ones and third-party systems in other cases.To achieve this, the framework adopts a risk-based engagement withborrowers in which the procurement arrangements incorporated into a Bank-financed project and the accompanying Bank levels of fiduciary oversightdepend on the quality and performance of the procurement system and thecomplexity of the procurement transactions. This dynamic approach, willfurther strengthen the Bank’s position in deepening its support for capacitydevelopment to its regional member countries and at the same time fulfillsuch international commitments as the Paris Declaration and its follow-ondecisions.“The impact of this new framework is expected to be significant,” said VinaySharma, Director of the Bank’s Procurement and Fiduciary Services Department. “We have estimated that this will lead to projects beingcompleted about eight months faster, resulting in over $200 million ineconomic benefits annually. Country ownership will increase and we willhave much greater legitimacy working with borrowers in the improvement oftheir governance systems.“With a large number of contracts being handled through the use ofborrower systems, a sector capacity will be unleashed to handle complextransactions and provide better advice to the countries. Differentiatedprocedures will especially help countries in transition. The focus on socio-economic objectives (including gender issues) will satisfy legitimateaspirations of the countries. The framework will allow for much more flexibleco-financing arrangements with other donors. Use of technology in Africa inpublic procurement will also increase, leading to more transparent, effectiveand efficient use of resources. All in all, this will position the Bank to be thepartner of choice for borrowers on the continent.”



Amirmehdi Asghari

Amirmehdi Asghari is the Lead Public Procurement and Contract Management Consultant. Before this, he was the Global Lead Procurement Officer of Project Procurement Office under the Country Programs Complex of the Islamic Development Bank. He served as Senior Project Procurement Specialist, prior to the organizational restructuring of the Bank that occurred in January 2018. Then, since beginning of 2018, he was appointed as Global Lead Procurement Officer (GPO) as per new organizational structure of Country Programs Complex of the Islamic Development Bank (IsDB) and served the Bank until February 2019

Amirmehdi Asghari

Amirmehdi Asghari is the Lead Public Procurement and Contract Management Consultant. Before this, he was the Global Lead Procurement Officer of Project Procurement Office under the Country Programs Complex of the Islamic Development Bank. He served as Senior Project Procurement Specialist, prior to the organizational restructuring of the Bank that occurred in January 2018. Then, since beginning of 2018, he was appointed as Global Lead Procurement Officer (GPO) as per new organizational structure of Country Programs Complex of the Islamic Development Bank (IsDB) and served the Bank until February 2019



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