January 1999

by Kelly Raftery

The World Bank ("the bank"), like many multilateral development banks, presents an excellent source of procurement opportunities for U.S. companies interested in entering the markets of the former Soviet Union. The World Bank supports development projects and sector-specific investment programs to build capital infrastructure. The bank finances more than 200 new projects each year, each of which involves an estimated 30,000 individual contracts. These contracts can be a rich source for U.S. exporters, assuming they pay strict attention to the tendering process and how it is managed through multiple channels.

The project cycle for the World Bank is a process jointly managed by the bank and the borrowing country ("the borrower"). The bank and the borrower work together to identify likely projects. The borrower prepares a set of documents for bank approval and revisions. Then the bank evaluates the project for viability and economic impact. Negotiations on terms and conditions for the loan are held and, if the board of directors approves the project, it passes into the implementation phase.

A project loan is approved by the bank and, while tenders must be executed according to all World Bank regulations, the actual responsibility for running the tender and choosing an appropriate contractor to fulfill the work lies with the borrower, or the country of project origin. Therefore, when the tender is actually announced, the announcement takes place in the host country. In its web page (www.worldbank.org), the World Bank repeatedly stresses that it is key for companies to market to and pursue contacts in the appropriate governmental body in the borrower country. Essentially all tenders operate in this manner.

There are two ways in which a company can find out more about specific projects from the World Bank. One is through a biweekly publication published by the United Nations called Development Business. A subscription costs US$495 for one year (24 issues) and US$845 for two years (48 issues). This publication includes the following information of potential value to parties interested in working on World Bank contracts:

• Monthly Operational Summary is a monthly listing of all the projects being considered for financing by the World Bank. This summary tracks projects from the time of identification to the time of loan signing. Nearly 900 projects are listed, providing enough information for companies to begin marketing to the borrowers.
  
• General Procurement and Specific Procurement Notices are also published, detailing opportunities for companies.
  
• Major Contract Award Notices identify the successful bidders for contracts that have recently been awarded.
  

• The World Bank Development Business Liason Unit
  Room D10-029
  1818 H Street, NW
  Washington, D.C. 20433
  tel: (202) 458-2397
  fax: (202) 522-3316
  
• Development Business
  United Nations
  P.O. Box 5850
  Grand Central Station
  New York, NY 10163-5850

The other way a company can find out more about specific projects is through a monthly business briefing held in Washington D.C. and in Paris, France by the World Bank. These briefings provide a general overview of the World Bank Group, focusing heavily on procurement policies and procedures. Attendance at a briefing costs US$100 per person, and registration must be completed two weeks prior to the briefing. To obtain a current schedule or to sign up, contact:

• in Washington, D.C.: Ivonne Lejuez, Monthly Business Briefings, Procurement Policy and Services Group, The World Bank, 1818 H Street, N.W., Washington, D.C. 20433; tel: (202) 473-1819; fax: (202) 522-3317.
  
• in Paris: European Business Briefings, 66, avenue d'I‚na, 75116 Paris, France; tel: +33 (1) 40-69-30-21; fax: +33 (1) 47-23-74-36.
  

Kelly Raftery works with BISNIS in Washington, D.C.

This report is provided courtesy of the Business Information Service for the Newly Independent States (BISNIS)