Para 3.17.18 — MSO (Audit)
Original Rule Text
3.17.18 Funds from Bank loan may be disbursed only on account of expenditure for goods and services provided by nationals of, and produced in or supplied from, Bank member countries. Under this policy, nationals of other countries or bidder offering goods and services from other countries should be disqualified from bidding from contracts intended to be financed wholly or in part from Bank loans.
What This Means
World Bank loan funds can only be spent on goods and services from companies based in World Bank member countries. Bidders from non-member countries, or those offering goods produced outside member countries, must be disqualified from contracts financed by World Bank loans. This is a procurement eligibility rule the auditor must verify.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Expenditure is restricted to goods/services from Bank member country nationals
- 2Products must be produced in or supplied from member countries
- 3Bidders from non-member countries must be disqualified
- 4Applies to contracts financed wholly or partly from Bank loans
- 5Auditor must verify compliance with this procurement eligibility condition
Practical Example
An implementing agency floats a tender for medical equipment under a World Bank-funded health project. A company from a non-member country submits the lowest bid. Despite the attractive price, the agency must disqualify this bidder because the goods originate from outside the eligible member countries, and the auditor will verify this during local audit.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Where can I find the list of World Bank member countries?▼
What if only part of the contract is financed by the Bank loan?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.