Skip to content
ListingMinds
ListingMinds

Procurement rules · Explainer

Development-bank tenders: which bank pays can decide who may bid

A contractor can be eligible for a project financed by the World Bank and ineligible for the same kind of contract financed by the Asian or African Development Bank. The bank that pays also decides whether local bids can get a price margin, and how a losing bidder can challenge the award.

ListingMinds · Published and updated · Sources verified

Geography: Global, Zambia

On this page

Whether a firm may bid at all can depend on which development bank pays for the project. A World Bank loan lets eligible firms from any country compete, and, apart from listed exceptions, the borrower may not turn one away for reasons unrelated to its capability and resources or to a conflict of interest. The Asian Development Bank lets bidders from its eligible members compete, and its ordinary capital resources pay, unless its Board decides otherwise, only for goods, works and services produced in and supplied from its members. The African Development Bank’s own lending is open only to firms incorporated in, national of and based in a member country.1, 3, 7, 8

The paying bank also shapes the price comparison. Under World Bank rules a borrower may add 15% to the price of imported goods when comparing them with goods made in its own country with at least 30% local content. It may never do so for Plant, the World Bank’s term for the provision of equipped facilities, such as those delivered on a design, supply, installation and commissioning basis. The European Bank for Reconstruction and Development (EBRD) provides for no margin at all in its newest rules.1, 4, 14

And it decides what happens after the award. Only the World Bank’s own rules fix the length of a standstill: 10 business days in which a losing bidder can decide whether to complain, longer if a late debriefing extends them. Only the EBRD gives a bidder deadlines of its own for taking an issue to the bank itself, tied to its own dealings with the client and the bank.

So the first thing to read in a development-bank tender is the financing line: which bank, which of its funds, and which edition of its rules. The World Bank, the Asian Development Bank (ADB) and the EBRD have all issued new ones since .1, 2, 3, 4

Who may bid: the firm, and the fund that pays

At ADB and the African Development Bank (AfDB), the restrictions follow the money. Unless its Board decides otherwise, the test for its ordinary capital resources also covers the funds ADB administers, and its Special Funds pay only for goods, works and services from members that contributed to them or from developing member countries. The AfDB applies its country-of-origin test when it lends its own money or the Nigeria Trust Fund’s; under the African Development Fund, firms from any country may bid.3, 7, 8

The AfDB’s test looks at the firm: where it is incorporated, its nationality and its principal place of business. A firm from a non-member country is not eligible even if it offers from a member country. An unincorporated joint venture is eligible if members that pass the test carry out more than 50% of the value of its works or services.7, 8 A group bidding through a local subsidiary or a partnership therefore has to settle which entity bids before it prices anything.

The other three banks are open by default. The World Bank lists its exceptions, among them a legal ban by the borrower’s country on commercial relations with the bidder’s country, an exclusion that complies with a decision of the UN Security Council, and a sanction under the Bank’s Anti-Corruption Guidelines. The EBRD places no restriction on firms from any country, member of the Bank or not. For projects inside and outside the EU financed from its own resources, the European Investment Bank (EIB) admits firms from all countries; where financing outside the EU comes from third parties, their rules apply and may partly restrict who can bid.1, 4, 5, 9

The EBRD’s rules of add grounds for exclusion. In a public sector operation the client must, subject to the Bank’s no-objection, reject a bidder where it, a member of its joint venture or any of their affiliates faces credible allegations of forced labour, child labour or human rights violations. The allegations must be backed by court judgments or by reports of intergovernmental or recognised human rights organisations. The 2022 rules had no such ground. For sanctions over prohibited practices, the look-back is shorter, five years instead of ten, but a final administrative fine now counts as well as a criminal conviction. The new rules apply only to operations that receive concept approval after ; earlier operations keep the 2022 rules unless the client and the Bank expressly agree otherwise.4, 5

Local bids: who sets a margin, and where it stops

The World Bank’s margin of domestic preference is an evaluation adjustment: it is added to the price of imported goods, or to foreign firms’ prices on works, only for comparing bids. It keeps no one out, but it can decide who wins. It is the borrower’s option, available only in open international competitive procurement for goods or works, agreed in the procurement plan and set out in the request for bids.1

For goods the margin is 15%, and locally made goods qualify only if local labour, raw material and components make up 30% or more of their ex-works price and the production facility has been making such goods at least since bid submission. On works, the margin is 7.5% on foreign firms’ prices, and only in member countries below a per capita income threshold that the Bank sets each year. Neither margin applies to Plant, so for a foreign manufacturer the same equipment can face the 15% margin when a borrower buys it as goods, and none when it goes into a substation let as one design, supply, installation and commissioning contract, the kind of contract the Bank’s definition of Plant gives as its example.1

An EIB borrower outside the EU, except in candidate countries, may also grant a 15% margin for goods with at least 30% local content ex-factory, but never for works, even works that include the supply of goods, or for local services.9 At both banks the form of the contract decides whether a margin can apply at all.

The AfDB may, under special circumstances and conditions, consider accepting the domestic and regional preference margins in a member country’s own procurement regulations, after reviewing them against its policy principles. Its manual suggests ceilings, but its wording for goods points both ways: “not exceeding 15%, but in any case, not exceeding the customs duties” on such imports, then “whichever is higher (yet still below 15%)”, so it leaves open whether the duties lower the ceiling.7, 8

Local labour quotas, and ADB’s compulsory merit points

The World Bank’s seventh edition added a local labour rule. Unless the Bank agrees otherwise, on internationally procured works contracts where its standard documents must be used, bidders must give at least a set share of total labour cost to local staff; the Bank fixes the share in those documents.1, 13 ADB sets its rule on headcount: unless it approves otherwise in writing, at least half of the contracted labour force on internationally advertised works contracts must come from within the borrower’s territory.3

ADB also makes merit-point scoring compulsory in open competitive bidding advertised internationally, for goods and nonconsulting services as well as works, with minimum technical weightings that rise with procurement risk: 10% or 20% where it is moderate or low, 50% or 60% where it is high or substantial, depending on the contract’s value. Those merit points may not reward only the origin of goods, equipment or materials, or the nationality of a bidder’s joint-venture partners, subcontractors or suppliers.3 Both labour rules are written for works, so an equipment supply contract let as goods is outside them; ADB’s scoring rule is not, and where procurement risk is high or substantial it gives technical merit at least half the weight.

Standstill: a length fixed in the rules only at the World Bank

At the World Bank the standstill period starts when the borrower sends its notification of intention to award and lasts 10 business days, counted in the borrower’s official working days, unless a late debriefing extends it; the contract may not be awarded before or during it. None is required where only one bid came in through an open competitive process, for direct selection, for call-offs under framework agreements, or in emergencies the Bank recognises.1

None of the other four sets its length in its own rules. ADB puts the details of any standstill in the bidding documents; the AfDB puts the agreed period in the procurement plan and financing agreement, and its manual’s typical 10 business days, where notices go out electronically, are only indicative good practice.3, 8 Outside the EU, the EIB asks for a reasonable period before signing without setting its length; inside the EU, national law implementing the EU procurement directives applies.9

Complaints: usually through the borrower; a bidder’s own clock only at the EBRD

At the World Bank, on contracts where its standard documents must be used, complaints go to the borrower in writing. One about the bidding documents should arrive at least 10 business days before the bid deadline, or within 5 business days after amended terms are issued, whichever is later. One about the intended award is made within the standstill period and answered within 15 business days, and the borrower does not proceed until it has properly addressed it.1 A late addendum therefore gives a bidder a fresh, short window to challenge the documents.

At ADB the borrower reviews complaints and, beyond acknowledging receipt, ADB generally does not communicate directly with the complainant until the award is published.3 Under the AfDB’s framework, complaints go to the borrower first, and may go to the Bank if the borrower does not respond promptly; to be admissible, they must be filed within the standstill period or, where there is none, before the contract is signed.15

At the EIB, a complaint about the promoter goes to the promoter or the relevant review bodies, normally national ones, and one about the Bank’s own action to its Procurement Complaints Committee. A complaint received after the Bank’s non-objection and during the standstill suspends that non-objection, and the Bank decides within 30 calendar days, or up to 60 in complex cases; once the standstill has expired, the process can no longer be redressed.9

The EBRD expects a bidder to try the client first, through a request for clarification or a debriefing. Until its proposal is opened (the financial proposal in a two-envelope process, the final proposal in a multistage one), it can ask the Bank for a procurement review, but only after one of those requests: no later than 7 days before the submission deadline if it asked for clarification, or within 7 days after its debriefing, the client’s explicit rejection of its debriefing request, or its submission of a debriefing request that the client does not answer within the time the procurement documents allow. Once the proposal is opened, the route is a complaint to the Bank, within 7 days after the same three events. A bidder that receives an unsatisfactory answer to a review request has 7 days to complain; if it misses them, it waives its right to complain about the same issue later in the process. The days are calendar days, and a deadline ending on a weekend or public holiday in the client’s country runs to the next working day only if the bidder told the Bank before the original deadline.4, 14 We read that third event cautiously: as worded, it ties the 7 days to the bidder’s own request, so a bidder whose request goes unanswered is safest counting from the day it asked rather than waiting for the client’s time to run out.

The five banks side by side

The five banks’ rules for bidders
Bank and rules as ofWho may bidPrice margin for local bidsStandstillComplaints go to
World Bank: Procurement Regulations for IPF Borrowers, seventh edition, Eligible firms from all countries, with listed exceptionsBorrower’s option, in open international competition, stated in the request for bids: 15% added to imported goods’ prices against goods made in the borrower’s country (30% local content, from a facility producing them since bid submission); on works, 7.5% added to foreign firms’ prices, below an income threshold; never for Plant10 business days from the notification of intention to award, unless extended after a late debriefingThe borrower, in writing: on the documents, before the bid deadline or soon after amended terms; on the award, within the standstill; no next step until the borrower has addressed it
ADB: Procurement Directive, in force from Goods, works and services from ADB members (ordinary capital resources), unless the Board decides otherwiseOnly a domestic scheme ADB accepts; no merit points for origin aloneMay apply; set in the bidding documentsThe borrower; ADB generally does not communicate directly with the complainant until the award is published
AfDB: framework in force since ; manual revised Member-country firms under AfDB and Nigeria Trust Fund financing; firms from any country under the African Development FundA member country’s own margins, if accepted under special circumstances; suggested ceilings: for goods, 15%, with a link to import duties that the manual words ambiguously; 10% for works (domestic); 10% and 7.5% (regional)Typically 10 business days if notified electronically, as indicative good practice; the agreed period is in the procurement plan and financing agreementThe borrower; the Bank if the borrower does not respond promptly; within the standstill or, if none, before signing
EBRD: Procurement Policies and Rules of , for operations concept-approved after that dateFirms from any country, member or notNone in its rulesNone in its rules or its complaints directiveThe client first; then the Bank: a review request while the proposal is unopened, a complaint once it is opened or after an unsatisfactory review answer; each on a short deadline of its own, and a late complaint after a review waives the issue
EIB: Guide to Procurement, Firms from all countries, for its own resources; third-party financing outside the EU may restrictOutside the EU, except in candidate countries, the borrower may grant 15% for goods with at least 30% local content; none for works or servicesOutside the EU: a reasonable period, length not set; inside the EU, national lawThe promoter or the relevant review bodies (normally national); the Bank’s Procurement Complaints Committee for the Bank’s own action

Source: each bank’s own regulations, directive, policy, manual or guide, at the sections listed for it in the sources below.1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 14, 15

Which rules a tender is under

At the World Bank, a bidder’s rights and obligations come from the request for bids and the contracts, not from the Regulations or the legal agreement between the borrower and the Bank; at ADB, they come from the bidding document and the contracts. The World Bank’s seventh edition is dated , but neither it nor the Bank’s procurement framework page says from which date it applies.1, 2, 3 The request for bids is therefore where a bidder should look for the edition.

ZESCO’s request for bids for Package 4 in Zambia, issued on , was an international request for bids under the World Bank’s seventh edition, open to all eligible bidders. After five addenda, its bids were due on (see our field note on that tender).11, 12

At ADB, references to the 2017 Procurement Regulations in its documents, including those of ADB-financed projects, now refer to the Directive, in force since .3 An old title can therefore carry new rules at ADB, while an older EBRD operation keeps the old rules by default.

Sources (15)

  1. 1

    World Bank: Procurement Regulations for IPF Borrowers, Seventh Edition · Tier 1 · official · Verified

    Where in the document

    Printed page first, PDF page after it. Edition list on the inside cover (PDF p. 2); Defined Terms, “Business Day” (p. iii, PDF p. 5) and “Plant” (p. v, PDF p. 7); paragraph 2.1 (p. 3, PDF p. 23); paragraphs 3.20 to 3.22 (pp. 9–10, PDF pp. 29–30); 3.28 (p. 11, PDF p. 31); 5.52 to 5.54 (pp. 25–26, PDF pp. 45–46); 5.78 to 5.80 (p. 31, PDF p. 51) and 5.82 (p. 32, PDF p. 52); Annex III, 2.3, 2.4 and 3.1(a) and (c) (pp. 65–67, PDF pp. 85–87); Annex VI, 2.2(a) and 2.5 (pp. 81–82, PDF pp. 101–102). The edition gives a month, not a day, and no effective date.

  2. 2

    World Bank: Procurement Framework page · Tier 1 · official · Verified

    Where in the document

    Section “Mandatory requirements” of the page (heading Mandatory requirements), entry “Regulations”: “Procurement Regulations for Investment Project Financing (IPF) Borrowers (2025-09)”, linking the Seventh Edition (S-346). Extract stored in docs/content/extracts/A9/D02.txt.

  3. 3

    ADB: Procurement Directive for ADB Borrowers, effective · Tier 1 · official · Verified

    Where in the document

    Printed page numbers. Paragraphs 1.1 to 1.3 and footnote 1 (p. 1); 2.1 to 2.3 (p. 2); 3.12 and 3.13 (p. 5); 3.23 and 3.25(c) (pp. 7–8); 6.6 (p. 18); 6.8 (p. 19); 6.16 and 6.17 with footnotes 15 and 16 (p. 20); 6.67 (p. 26); 6.72 (p. 27).

  4. 4

    EBRD: Procurement Policies and Rules, · Tier 1 · official · Verified

    Where in the document

    Section I (p. 3); definition “Credible Allegations…” (p. 4); Article 2.7 (p. 9); Article 2.8(d) and (g) (p. 10); Articles 3.53 to 3.57 (pp. 19–20); Article 3.67 (p. 21); Sections V and VI (p. 26). Text search for “preference”, “margin”, “domestic” and “standstill”: none.

  5. 5

    EBRD: Procurement Policies and Rules, (the rules before ) · Tier 1 · official · Verified

    Where in the document

    Article 2.7 and Article 2.8 (p. 6); Article 3.52(b) (p. 15). Text search for “forced”, “child labour” and “human rights”: none.

  6. 6

    AfDB: Procurement framework page · Tier 1 · official · Verified

    Where in the document

    The “Procurement framework” section, first two paragraphs. The site refuses plain requests (HTTP 403, ): read from the Internet Archive capture of (docs/content/extracts/A9/D08.txt). To be opened in a real browser.

  7. 7

    AfDB: Procurement Policy for Bank Group Funded Operations · Tier 1 · official · Verified

    Where in the document

    Paragraph 5.1 and footnote 19 (p. 11); paragraph 8.10 (pp. 20–21). The site refuses plain requests (HTTP 403, ): read from the Internet Archive capture of , the address the framework page of still links. To be opened in a real browser.

  8. 8

    AfDB: Operations Procurement Manual, Part A, Volume 1, revised 2026-05 · Tier 1 · official · Verified

    Where in the document

    Printed page first. Cover; A2.1.3 (p. 4, PDF p. 21); Box A2, items b) and c) (p. 5, PDF p. 22); A7 item c) and Box A9 (p. 35, PDF p. 52); D3.4.11 and D3.4.12 (p. 238, PDF p. 265). The site refuses plain requests (HTTP 403, ): read from the Internet Archive capture of . To be opened in a real browser.

  9. 9

    EIB: Guide to Procurement for projects financed by the EIB, version of 2024-03 · Tier 1 · official · Verified

    Where in the document

    Printed page numbers. “Version dated 2024-03” (PDF p. 7); 1.2 (p. 2); 1.8 (p. 4); 2.1 (p. 5); 3.2.1 and 3.2.2 (p. 7); 3.7.9 (p. 18); 3.7.13 (p. 19); Annex 7 (pp. 35–36). Text search for “standstill”: only 3.7.13 and Annex 7, no length.

  10. 10

    EIB: publication page, Guide to Procurement for projects financed by the EIB · Tier 1 · official · Verified

    Where in the document

    Page header, date line (5 Jul 2024); “The Guide to Procurement was updated 2024-03 …”; “The updated Guide to Procurement (2024-03) replaces the 2018-09 version …”. Extract stored in docs/content/extracts/A9/D13.txt.

  11. 11

    ZESCO Limited: Package 4, Nakonde Stepdown and Kasama 330 kV substations (RFB ZM-ZESCO-495237-CW-RFB), Update 4 archive: Request for Bids REV05 of , Addendum No. 5 and its notice, Clarifications No. 2 · Tier 1 · official · Verified

    Where in the document

    RfB REV05: cover (PDF p. 1); Specific Procurement Notice ¶3 and ¶7 (PDF pp. 3–4); BDS ITB 4.11 (PDF p. 53, printed p. 43). Amendments and clarifications checked, each with what it changed: Addendum No. 1 (deadline from to ); Addendum No. 2 (deadline to ); Addendum No. 3 (Guarantee Test window from 730 to 30 days, extended defects liability from 12 to 36 months, late-payment interest wording, “Air Insulated Substation” in the similar-contract test, ZESCO’s safety rules, technical changes, deadline to ); Clarifications (RFC 1–421), answered before Addendum No. 3; Addendum No. 4 (deadline to , no new date for clarification requests); Addendum No. 5 (exchange-rate date, type tests less than 8 years old in §7.5.1, Tunduma interface, technical and price schedule changes, deadline to ); Clarifications No. 2 (RFC 422–482). None of them changes the cited text.

  12. 12

    ZESCO Limited: Package 4 (RFB ZM-ZESCO-495237-CW-RFB), original tender documents archive: Request for Bids of , REV01 and Addendum No. 1 · Tier 1 · official · Verified

    Where in the document

    Request for Bids of , Specific Procurement Notice (the issue date; ¶7, the first deadline). Addendum No. 1 (pp. 1–3): Specific Procurement Notice ¶7, BDS ITB 23.1 and 26.1, deadline and opening from to , 10:30 CAT, issued with RfB REV01. The archive on ZESCO’s server was replaced after issue (server date ) and holds Addendum No. 1.

  13. 13

    World Bank: Bank Procedure, Procurement in IPF and Other Operational Procurement Matters, effective · Tier 1 · official · Verified

    Where in the document

    Revision history, entry “2025-09” (PDF p. 41): the update reflecting the local labor participation requirements introduced in the Seventh Edition. Section VIII, effective date (PDF p. 39).

  14. 14

    EBRD: Directive, Procurement Reviews and Complaints, effective · Tier 1 · official · Verified

    Where in the document

    Section IV, 1, Introduction (p. 4); 3.1, the stage table (p. 5); 3.3, Computation of Time (p. 6); 4.2 (a) and (b) (p. 7); 5.2 (p. 9); Section VII, Effective Date (p. 12). Text search for “standstill”, “preference” and “margin”: none. Its Section III names the 2022 and 2017 rules; the 2026 rules (Article 3.67) refer to the directive “as published on the Bank’s website”, which is this file.

  15. 15

    AfDB: Guidance Note, Handling Project’s Procurement Related Complaints · Tier 1 · official · Verified

    Where in the document

    Paragraph 4.5.1 (p. 12); paragraph 5.1.1 (p. 13). The site refuses plain requests (HTTP 403, ): read from the Internet Archive capture of , linked from the framework page. To be opened in a real browser.

ListingMinds uses primary procurement, regulatory and contracting sources wherever available. How we work

How to cite

ListingMinds, “Development-bank tenders: which bank pays can decide who may bid”, . https://www.listingminds.com/energy/field-notes/development-bank-procurement-rules

Decide which tenders are worth bidding for.

We'll email you once when access opens.

We'll send a confirmation link to this address. Nothing else is sent until you confirm.

Read our privacy notice.