Procurement Guidelines

III. Other Methods of Procurement
General
3.1 This Section describes the methods of procurement that can be used
where international competitive bidding (ICB) would not be the most economic
and efficient method of procurement, and where other methods are deemed
more appropriate. 40 ADB’s policies with respect to margins of preference for
domestically manufactured goods and works contracts do not apply to methods
of procurement other than ICB. Paragraphs 3.2 to 3.7 describe the generally
used methods in descending order of preference and the remaining paragraphs
the methods used in specific circumstances.
Limited International Bidding
3.2 Limited international bidding (LIB) is essentially ICB by direct invitation
without open advertisement. It may be an appropriate method of procurement
where (a) there is only a limited number of suppliers, (b) the amount of the
contract is not large enough to attract foreign suppliers and contractors
through ICB, or (c) other exceptional reasons may justify departure from full ICB
procedures. Under LIB, borrowers shall seek bids from a list of potential suppliers
broad enough to assure competitive prices, such list to include all suppliers
when there are only a limited number. Domestic preferences are not applicable
in the evaluation of bids under LIB. In all respects other than advertisement and
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Contracts shall not be divided into smaller units in order to make them less attractive for ICB procedures; any
proposal to divide a contract into smaller packages shall require the prior approval of ADB.