(1) Procurement of Goods and Services (excluding consultancy services)
Procurement of goods and services with funds provided by an ODA loan is the responsibility of the borrower, but the procedure itself must conform to the OECF Procurement Guidelines. These guidelines stipulate that procurement should as a rule, be conducted via international competitive tender. Further, they lay down the steps to be followed in the bidding process and specify other procedures to be adopted by the borrower in procuring goods and services (excluding consultancy services) under the terms of a loan agreement. The principal aims of the Guidelines are set out below.
(i) Procurement should be undertaken with due regard to the principles of economy, efficiency, and transparency in the procurement process and non-discrimination among eligible bidders.
(ii) Procurement with ODA loan funds is to be undertaken by international competitive tender.
(iii) Limited international tender and direct contracting may only be adopted in circumstances such as those that demand continuity and require uniformity of standards and limited qualified contractors.
(iv) Equipment and materials purchased with loan funds must be procured from eligible source countries.
(v) The tender must be advertised in at least one newspaper in general circulation in the recipient country.
(vi) Adequate time must be allowed for the lodgment of tenders to ensure a competitive environment.
Procurement of Goods and Services (excluding consultant's service)
(2) Employment of Consultants
The selection and employment of consultants with funds extended under an ODA loan are the responsibility of the borrower, but the procedure for selection and employment must conform to the Guidelines for the Employment of Consultants by OECF Borrowers. These Guidelines note that the selection of the consultant should primarily revolve about evaluation of technical aspects, and set down the selection procedure (selection and evaluation) and other processes to be followed by the borrower in employing the consultant.
(3) Procurement Contract
The OECF investigates the procurement contract for the goods and services required for the implementation of the project and ascertains whether or not it is appropriate for funding under the loan agreement.