Making Procurement Work Better – An Evaluation of the World Bank’s Procurement System

Investment Rating - The report does not explicitly provide an investment rating for the procurement industry but emphasizes the importance of enhancing procurement processes to achieve better value for money in World Bank-supported projects [20][21]. Core Insights - The evaluation assesses the World Bank's procurement system and its reforms since 2016, highlighting the need for improved efficiency, integrity, and sustainability in procurement practices [20][21]. - The reforms introduced a new procurement framework aimed at addressing bottlenecks and enhancing value for money, with a focus on client capacity building and the introduction of innovative procurement strategies [21][22]. - The findings indicate that while the reform has shown promising results, consistent implementation across projects and regions remains a challenge, particularly in areas with low client procurement capacity [24][25]. Summary by Sections 1. Introduction - The report outlines the significance of procurement for development and the World Bank's 2016 procurement reform aimed at improving procurement efficiency and effectiveness [20][21]. 2. Improving Procurement Efficiency - Procurement times have improved significantly, with the median turnaround time reduced to about two months from over three months prior to the reform [26][29]. - However, common processing issues and delays still impede project implementation, particularly in high-risk and complex procurements [31][34]. 3. Improving Procurement Economy, Integrity, Transparency, and Fairness - The reform emphasizes the need for enhanced market analysis and competitive approaches to engage qualified suppliers, yet the practical uptake of these principles has been slow [79][80]. - There is a need to balance cost and noncost factors in procurement to improve quality and sustainability [34][35]. 4. Improving Procurement Fit for Purpose and Value for Money - The application of procurement principles has led to better performance, but there is a lack of consistent implementation across projects [24][25]. - Early procurement starts and strategic planning are crucial for maximizing project outcomes [37][38]. 5. Procurement Capacity Strengthening and Support - The report highlights the need for strategic capacity strengthening to address persistent procurement issues and enhance client capabilities [56][58]. - Engaging in country-level dialogue and developing tailored capacity strengthening plans are essential for improving procurement performance [55][56]. 6. Conclusions - The evaluation concludes that while the reform's logic is sound, there is an urgent need to scale up its implementation across the investment project financing portfolio to maximize benefits [24][25].