Global MDBs sign memorandum to harmonize their procurement systems in Ukraine

MOSCOW. Oct 17 (Interfax) - 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 harmonize procurement procedures for investments in the public sector financed by the multilateral development banks (MDBs) in Ukraine.

The chiefs of the four MDBs signed a memorandum of intent meeting the Ukrainian authorities' and donors' expectations during the 2023 World Bank Group and International Monetary Fund Annual Meetings in Morocco on Monday, Ukrainian media reported with reference to an EBRD statement.

In particular, they expect international organizations working in Ukraine to harmonize and streamline their procurement practices as much as possible, while exercising proper fiduciary oversight, it said.

Ukraine's reconstruction needs will be "huge," the EBRD said. In particular, the World Bank estimated the cost of reconstruction based on damage Ukraine sustained during the first year of the crisis alone at $411 billion over ten years.

"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," the statement quoted World Bank President Ajay Banga as saying.

EIB President Werner Hoyer described the memorandum as an example of enhanced cooperation among the global MDBs. "Our collective commitment to the colossal task of Ukraine's recovery and reconstruction is carefully coordinated. It can count on EIB financial backing of over 2 billion euros for Ukraine's most urgent needs and the roll out of the EU for Ukraine Fund, backed by Member States contributions and European Commission guarantees of 500 million euros so far," Hoyer said.

The memorandum is based on progress already made by the four MDBs' procurement heads in making a series of mutual reliance agreements to facilitate jointly co-financed projects. To this end, they have delegated authority for a shared project to a designated lead financier for supervision and approval of procurement transactions, it said.

The MDBs have also agreed on common approaches in promoting usage of electronic procurement systems together with the relevant procurement monitoring mechanisms to support the Ukrainian authorities' needs. The MDBs have acknowledged the significant progress the Ukrainian authorities have made in aligning the national e-procurement system (ProZorro) with MDBs' policy requirements and best international practices.

The MDBs have reaffirmed their intention to expand the application of Ukraine's e-procurement system once the upgraded system becomes functional to ensure proper transparency, fair international competition, and value for money for Ukrainian citizens, it said.