Procurement Overview

One of the mandates of the Caribbean Development Bank (“CDB” or “the Bank”) is to ensure that procurement for the projects which it finances is carried out in conformance with the Articles of Agreement Establishing the Bank (the Charter). Article 15 (h) of the Charter states that:

“The proceeds of finance in the ordinary operations of the Bank shall normally be used only for procurement in territories of members, of goods and services produced in those territories.”

The Charter also requires that the Bank ensures that the proceeds of any loan/grant made, generated or participated in by the Bank are used only for the purpose for which the financing was granted and with due regard to considerations of economy and efficiency.

Responsibility for procurement management under Bank-financed projects rests with the Recipient of CDB financing (herein after the Recipient) and not the Bank. The Recipient is the entity which establishes and signs all contracts with consultants, contractors and suppliers and as the client, is legally and operationally in charge in all such purchasing relationships. The role of the Bank in these procurement undertakings is one of oversight to ensure that procurement is carried out in accordance with the Bank’s procurement guidelines and the terms of the relevant financing agreement between the Recipient and CDB.

CDB supports the creation/upgrading of public procurement systems in its Borrowing Member Countries (BMCs) and regards fairness, economy, efficiency and transparency in BMC procurement as critical to poverty reduction and sustainable development.

Under Procurement five main areas are covered. These are:

  • Procurement Notices which advertise procurement opportunities for CDB-financed projects.
  • Procurement Publications which include:
    • guidelines for the procurement of goods, works, related services and consultancy services; and
    • standard pre-qualification and bidding documents which must be used in the process of engaging contractors and suppliers.
  • Information in respect of contract awards made to contractors and suppliers under CDB-financed projects.
  • Information regarding the monetary thresholds which have been set for each of the Bank’s Borrowing Member Countries (BMC).
  • Misprocurement Guide which outlines common examples of misprocurement and the correctional steps taken.
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