Disbursement Procedures - Islamic Development Bank

Purpose
General Information
Chapter 3 -
PROCUREMENT OF GOODS WORKS AND SERVICES
3.2 The procurement of goods and services are governed by the Guidelines for
procurement of goods and services under the IDB and also the use of the services of
consultants is governed by the IDB Guidelines for the use of consultants.
3.3 The above guidelines at 3.2 fully document the requirements of the Bank for
procurement and use of consultants. Borrowers or their representatives who prepare
disbursement applications must fully understand these requirements so that disbursement
for goods, works and services can be effected promptly and efficiency must understand
these requirements so that disbursements can be effected efficiently and promptly. The
noncompliance of the procedures may cause delays in disbursements.
International Competitive Bidding (ICB)
The most effective form of procurmeent in most cases is international competitive bidding.
Expenditures under Contract
The bidding documents always state that the proceeds of Bank financing should be
applied for payment of goods produced in and services rendered from eligible countries.
Bidding documents therefore require the contractor or supplier to provide necessary
information on the country of origin of the goods, works or services to comply with this
requirement.
3.4 General
Purpose
3.4.1 The purpose of International Competitive Bidding is to provide the Recipient with a
wide range of choices in selecting the best bid from competing suppliers/contractors, and
to give all prospective bidders from eligible source countries adequate, fair and equal
opportunity to bid for the goods and services which are being procured under the Bank
financing. The Articles of Agreement of the Bank require that goods and services (other
than consultancy services) be procured, ordinarily, through International Competitive
Bidding, open to suppliers and contractors from all countries of the world.
3.4.2 Exceptions to this rule are those countries which are disqualified by the Bank, or
where the required goods and services are available in the Bank's Member Countries.
Furthermore, where it is ascertained that there are sufficient number of Member Countries
which have the production capability to manufacture a certain plant, equipment or
machinery according to the required standards and which may be interested in providing
after-sales services, the bidding for such plant, machinery or equipment will be restricted
to the Bank's Member Countries.