A new World Bank procurement framework could mean more action for Kiwis
The framework provides new opportunities for companies and the communities they live and work in.
New Zealand suppliers are being actively encouraged to take part in World Bank-financed projects.
The World Bank’s freshly updated procurement framework is providing new opportunities for New Zealand suppliers, says Gallina Vincelette, Vice President, Operations Policy and Country Services for the World Bank.
The changes have increased focus on quality, rather than the lowest price. New requirements also aim to support early market engagement and modern procurement practices, and increase local employment opportunities.
Gallina was in New Zealand in early March, looking to increase the Bank’s profile amongst New Zealand businesses and promote opportunities.
“To give you an idea of the scale of opportunities, we currently have US$250 billion across more than 1,500 active projects, executed through around 40,000 procurements annually.
“Over the past 5 years, New Zealand suppliers have secured approximately US$120 million in World Bank–financed contracts. There are procurement opportunities which are open to companies to bid on. In the Pacific, for example, we see several upcoming large works packages, particularly in the transport and health sectors,” Gallina said.
In 2025, the World Bank introduced several enhancements to its procurement framework aimed at delivering better outcomes in the Bank’s financed procurement. These changes included requiring a 50% minimum quality weighting for most internationally competitive procurement, early market engagement for all contracts with an estimated value at or over $10 million; and working with borrowers to aggregate smaller contracts into larger value packages. Companies bidding on international civil works contracts must now allocate at least 30% of total labour cost to employment of local labour.
Gallina said these enhancements align with best practice in public procurement and are aimed at helping countries where the World Bank finances projects create local jobs and deliver better development outcomes.
These changes were informed by feedback from the business community as well as a comprehensive evaluation by the World Bank Group’s Independent Evaluation Group with the aim to open the door wide for private sector bidders worldwide.
New Zealand companies also provided inputs in August 2024, said Gallina.
“This feedback included wanting to be engaged earlier in the process to inform project design, procurement approach, and more focus on quality when assessing bids, in particular sustainability, past performance, and ability to successfully mobilise local supply chains and local labour. This feedback has been very helpful in informing the changes we’ve made.”
Gallina said continuous improvement in the way the World Bank-finance procurement is carried out has been in the core of the reforms.
“We’re also encouraged to see several New Zealand firms participating in the joint Asian Development Bank and World Bank roster of detailed engineering design and construction supervision firms for Pacific projects. This represents an innovative model for delivering infrastructure in the Pacific – providing a more agile, responsive mechanism for accessing high-quality consulting expertise across the region.”
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