Discusses pricing formula and other fees, value-added tax (VAT), etc.

Project Procurement
The IDB provides funding to its borrowing member countries with a broad range of loans and development programs. These operations involve procurement processes for goods, works, and services provided by firms and individuals.

The IDB is supporting Borrowing member countries in their effort to strengthen their procurement systems so that they meet international best practices. The goal is to have Borrowing member countries use their own systems to carry out procurement processes for IDB-financed projects, under the threshold for International Competitive Bidding (ICB), if the system or sub-system has been accepted by the IDB in compliance with the provisions in the Guide for the Acceptance of the Use of Country Procurement Systems. Consequently, IDB Procurement Policies shall be observed for ICB or for when a country’s system has not yet been accepted for use in Bank operations.

Issues around MDB procurement methods earned significant attention during the 2016 World Bank reform of its procurement system from a “lowest cost” model to a “fit for purpose” and “value for money” model. This gave borrowers the flexibility to design projects, and select contractors, based on factors other than cost. The IDB never converted to a lowest cost model and has always maintained a level of flexibility and room for “value for money” analysis in its evaluation methods. Therefore, this type of institutional reform is reportedly not necessary at the IDB. American firms capable of demonstrating value across the entire life cycle of a project are well positioned to be competitive in their bidding at the IDB.

Though IDB loans are denominated in U.S. dollars, public tenders issued by borrowing governments are typically denominated in local currency.

To learn about pricing considerations in countries of interest to your firm see the “Pricing” section of each country’s Country Commercial Guide.
Corporate Procurement
The IDB itself runs competitions for consulting and advisory services, in support of its analysis and evaluation of projects and to perform Technical Cooperation contracts for client governments. These competitions are run through the BEO Procurement System. Tenders and contracts can be denominated in U.S. dollars or local currency.

Bid evaluation criteria, stated in tender documents, typically include a weighted scale of both technical and financial considerations.

Private Sector Solutions
Private sector activities in partnership with IDB Invest involve investments rather than procurements. Therefore, a discussion of pricing is not applicable in a debt/equity financing environment.
 

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