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The Procurement Market
Development Business uses the term "Global Procurement” to refer to the aggregation of all goods and services tendered, in various currencies, by its partnering multilateral development agencies. The figures below represent the market share of key content providers within the last few years.
Within the last decade, there has been an increase in the amount of money that is disbursed to fund international development projects in an expanding global market.
World Bank Group
The entire World Bank Group delivered $52.6 billion in loans, grants and other assistance in the 2013 fiscal year (ending 30 June 2013) down from $53.4 billion the prior year as demand for aid in middle-income countries fell.
Total procurement of goods and services for operational activities of the UN system:
The overall procurement volume (goods and services combined) of UN organizations in 2015 increased to $17.6 billion, from $17.2 billion in 2014 ‒ an increase of 2.0 per cent13 (Figure 1). The increase in the overall procurement volume from 2014 to 2015 is mainly attributable to a rise in volume from UNDP14. This increase was due in part to a large rise in the procurement of pharmaceuticals, and an increase in the reporting of activity related to UNDP’s National Implementation Modality.
For full report:
2015 Annual Statistical Report on United Nations Procurement
Inter-American Development Bank
In 2012, the IDB continued to be the leading source of multilateral credit for Latin America and the Caribbean. To this end the Bank approved over 169 operations valued at US$11.4 billion.
European Bank for Reconstruction and Development
For 2012, the EBRD delivered another year of strong performance, providing financing of €8.9 billion to nearly 400 clients across more than 30 countries, expanding its mandate into new potential recipient countries, and ending the year in a strong position for the work ahead.
Asian Development Bank
The Asian Development Bank dramatically scaled up its activities in fiscal year 2015 to meet the growing demand for assistance for the region's most intractable challenges. The year’s loan and grant approvals amounted to a record $16.29 billion, compared to $13.49 billion from the previous year. Private sector operations also posted a big jump to $2.63 billion from $1.92 billion in 2014. With the strong support of donors, the ADB was able to mobilize more than $10.74 billion in co-financing, bringing total operations for 2015 to $27.17 billion, the highest in ADB history.
African Development Bank
In 2012, the African Development Bank committed close to USD 6.3 billion – with the largest share going to infrastructure. The quality of the Bank’s portfolio continues to benefit from its selectivity and strategic focus.
Caribbean Development Bank
The CDB’s approvals for 2012 remained relatively stable at around $163 million, with a noticeable shift in emphasis towards community-driven, capacity building and other projects with a high poverty-reduction focus.
Millennium Challenge Corporation
The Millennium Challenge Corporation (MCC) is an initiative by the U.S. government with the goal of fighting global poverty. Twenty-five countries have benefited from the MCC Compact programmes. The total dollar amount for compacts with these countries through fiscal year 2012 stood at $ 9,140,412.
Project and Procurement Cycles
The Project Cycle outlines the process from identification and preparation of the project at the country level to its final funding approval, implementation, completion and evaluation. The Procurement cycle takes place when goods and services need to be procured along with many other deliverables during the implementation stage of the project cycle, with some overlap. The diagram below attempts to simplify the many complex steps in this process.
The role of Development Business comes into effect between the approval and implementation phases of the project cycle when procurement notices are issued, bidding takes place, and later contract awards are announced.
For a typical World Bank procurement cycle, the Monthly Operational Summary provides information on projects in the ‘pipeline’, i.e. when funding is being considered for a proposed project. Once a project is approved, a general procurement notice is published and bidders can evaluate and prepare their participation in a future bidding process. The final requests for procurement (Invitation to Bid or Request for Proposal) provide a specific deadline and are published online in Development Business as soon as the bank finalizes the tender. After the closing of a bid, a subsequent contract award will be posted in Development Business, as well.
Understanding the project and procurement cycle is essential for business planning.
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