This video provides an overview of how ADB determines Noncompliance in Procurement and how borrowers can prevent Noncompliance activities from occurring.
What is noncompliance in procurement?
Noncompliance refers to situations where the borrower fails to follow ADB’s procurement regulations or agreed alternative procurement arrangements.
Typical examples of noncompliance include issuing bidding documents without ADB approval, failing to use the prescribed procurement method, or providing ADB with false or incomplete procurement transaction records.
Why is it important for the borrower to address noncompliance in procurement?
Dealing with noncompliance in a timely manner helps avoid delays in procurement and reduces the risk of bidding-related complaints from interested parties.
A proper assessment by ADB of noncompliance by the borrower also helps identify possible integrity violations such as fraud, corruption, coercion, or collusion that may affect intended project outcomes.
What guides ADB’s approach to dealing with noncompliance in procurement?
Noncompliance in procurement is assessed based on provisions in the project procurement documents or specific financing agreements with the borrower, allowing for a flexible approach that considers the nature and severity of the issue.
This guidance note explains how ADB determines noncompliance in procurement and corresponding actions borrowers must take to ensure a compliant procurement process.