ICB – Definition, Procedure, and Requirements

International Competitive Bidding (ICB) is one of the most transparent and widely accepted procurement methods for large-scale projects. It provides a global platform for contractors to compete fairly and is governed primarily by the guidelines of the World Bank.

Under the ICB process, clients must first advertise the tender publicly before proceeding further. According to World Bank guidelines, borrowers are encouraged to select the lowest evaluated and most responsive bid.

What Do You Mean by ICB?

ICB stands for International Competitive Bidding. It is a procurement process required for projects financed by the World Bank and other international financial institutions. ICB allows contractors from across the globe to participate, giving clients a wider choice and ensuring healthy competition.

Price Range of International Competitive Bidding

ICB procurement is generally carried out based on estimated project planning. The typical financial thresholds are:

The ICB threshold also determines whether National Competitive Bidding (NCB) applies and is usually mentioned in the Request for Proposal (RFP). Final bid selection depends on World Bank approval, with emphasis on the lowest evaluated compliant bid.

Procedure Types of ICB

There are two primary bidding procedures under ICB:

The choice of procedure depends on the complexity of the project and must strictly follow World Bank-issued procurement guidelines.

Contract-Based Procedure

The single-envelope procedure is commonly recommended for ADB-funded projects. However, not all contract types suit all procedures. For example, goods procurement may use multiple bidding methods, while construction projects may follow single-stage or two-stage procedures.

For highly complex projects such as power plants or processing facilities, customized bidding procedures may be adopted to meet technical requirements.

Prequalification in ICB

Prequalification is not a separate bidding procedure but an integral part of the ICB process. It is commonly used for complex construction projects or when a large number of contractors are expected to participate.

Through prequalification, only contractors that meet technical, financial, and experience criteria are shortlisted for bidding.

The Asian Development Bank (ADB) provides standard guidelines for prequalification documentation. Key considerations include:

Prequalification is typically valid for 6 to 12 months and applies only to bidders meeting all requirements.

Factors Affecting International Competitive Bidding

Advertisement of the Bid

Effective advertisement is crucial for successful ICB. It ensures that accurate project information reaches potential bidders worldwide.

Advertisements may be published in:

The standard advertisement period is approximately six weeks, allowing bidders sufficient time to prepare and submit documents.

Use of Standard Bidding Documents

All bidding documents must comply with World Bank Standard Bidding Documents (SBDs). Proper documentation ensures global participation and transparency.

Preference to Domestic Bidders

Under certain conditions, domestic bidders may receive a margin of preference during bid evaluation. This preference is applied only to eligible projects and must follow country-specific and World Bank guidelines.

How Does International Competitive Bidding Work?

World Bank-funded projects aim to promote fair competition and value for money. While borrower countries have flexibility in procurement execution, the World Bank expects the selection of the lowest evaluated responsive bid.

Requirements for Conducting ICB

Key requirements for conducting ICB include:

Advantages of International Competitive Bidding