The Council of Europe Development Bank (CEB), the European Bank for Reconstruction and Development (EBRD), the European Investment Bank (EIB), and the World Bank have agreed to harmonise procurement procedures for public sector investments financed by the development banks in Ukraine, Ukrinform reports, citing a World Bank press release.
“Ukraine’s recovery needs will be substantial. The World Bank has estimated the cost of rebuilding Ukraine after Russia’s invasion in February 2022 – based on the damage caused in the first year of the war alone – at US$411 billion over 10 years. Billions are currently being allocated to Ukraine for economic support, and these sums will only increase when the time comes to rebuild. Ensuring transparency and simplicity in investment management procedures is therefore critical,” the statement said.
It is noted that the Memorandum of Understanding signed by the heads of the four multilateral development banks (MDBs) during the Annual Meetings of the World Bank Group and the International Monetary Fund in Morocco meets the expectations of the Ukrainian authorities and donors. First and foremost, it states that international organisations operating in Ukraine will harmonise and streamline their procurement practices as much as possible while maintaining appropriate fiduciary oversight.
The signing of the memorandum also marks the beginning of enhanced cooperation among MDBs, in line with the reform agenda of the new World Bank President, Ajay Banga.
“This kind of cooperation represents development work at its best. Harmonizing procurement procedures for Ukraine among the multilateral development banks has huge potential to substantially ease demands on the country at a time when its capacity is already stretched to the limits. For its part, Ukraine’s strong emphasis on digital transparency in procurement has made this collaboration possible,” said Banga.
The MoU builds on existing arrangements between the heads of procurement of the four MDBs. They have entered into a series of mutual support agreements to facilitate the implementation of jointly funded projects.
Under these agreements, authority for a joint project is delegated to a designated Chief Financial Officer to oversee and approve procurement transactions.
The MDBs have also agreed on common approaches to support the use of electronic procurement systems and appropriate procurement monitoring mechanisms to support the needs of the Ukrainian authorities.
The MDBs noted the significant progress made by the Ukrainian authorities in bringing the national e-procurement system (Prozorro) in line with international best practices.
The banks reiterate their intention to expand the use of the Ukrainian e-procurement system after the launch of its updated version, which will ensure proper transparency, fair international competition, and optimal value for money for Ukrainian citizens.
As reported, the World Bank has approved using Prozorro for all projects it finances in Ukraine.