This Guidance Note provides a structured and harmonised framework for assessing Value for Money (VfM) in procurement under infrastructure projects financed by Multilateral Development Banks (MDBs), including the Caribbean Development Bank.
It offers practical guidance on how to align VfM objectives with project design and integrate them across the procurement and project cycle. The framework supports a consistent approach to evaluating procurement performance against the principles of economy, efficiency, effectiveness, and equity (the “4Es”), while promoting transparency, accountability, and alignment with broader development objectives.
Recognising the diversity of institutional contexts and levels of maturity across MDBs and borrowing countries, the Guidance Note provides a unified yet flexible methodology that can be adapted to different operational realities. It is intended for procurement and operational staff within CDB, as well as borrowers, implementing agencies, and other stakeholders involved in CDB-financed projects.
1. About This Framework
2. Why Value for Money in Procurement Matters
3. Integrating Value for Money Across the Project Cycle
4. Process for Assessing Value for Money in Procurement
5. Practical Tips for Achieving Value for Money in Procurement
6. Available Tools
7. Moving Forward
Bibliography
APPENDIXES
Appendix 1: Strategies to Integrate Value for Money Across the Project Cycle
Appendix 2: Sample Indicator Menu
Appendix 3: Sample Value for Money Assessment Tool
Appendix 4: Practical Application of Sensitivity and Variance Analysis
Appendix 5: Value for Money Examples
