Current situation of major donners in the international development aid
Global organisations like the United Nations, World Bank, European Commission and, for example, the German Bank „Kreditanstalt fuer Wiederaufbau“ ( KfW ) often apply strict standards to their procurement processes. The phrase "operational procurement" means that financed projects are being processed through state loans and public grants in a regulated area. Hence, the lender, such as the United Nations, World Bank, European Commission and KfW, are not themselves responsible for the execution of the project, which means that the debtor ( Beneficiary Countries ) shall be in charge of the procurement. However, such procurement activities have to be in strict compliance with the procurement guidelines of those major donors.
The idea behind is that clearly defined, procurement procedures should guarantee a fair and open competition to such development aid projects.
The procurement activities will take place in the following sections:
2) Goods and Supplies;
3) Services ( Non-Consulting ); and
4) Services ( Consulting ).
Transferring primary responsibility for procurement to the developing countries will result in a better process with the countries getting appropriate services, quality and value for money.
Operational procurement is a very interesting field for German Companies due to the fact, that the above mentioned organizations giving away a great number of contracts to private companies to support projects in emerging and third world countries.