solution

COVID-19 Challenges and Response: How procurement underpins the World Bank’s response to the pandemic With the number of coronaviruses (COVID-19) cases growing exponentially, client countries have requested emergency support and help from the World Bank as they tackle the pandemic. Procuring medical goods on an emergency basis – such as masks, gowns, respirators, hospital beds, ventilators, oxygen cylinders, and ambulances – is critical. The same goes for procurement of consultancy services to raise public awareness and to develop laboratory and medical protocols, especially as many hospitals lack capacity to manage the number of cases and the internal organization needed to prevent intra-hospital infection. Procurement specialists are working round the clock with government counterparts and Bank colleagues on needs assessments and design of faster, more efficient arrangements to jump start project implementation. They are facing many challenges, such as market availability, border closings, and coordination with the government. Procurement specialists are also managing day-to-day activities of ongoing projects in all sectors and must now address challenges posed by the pandemic – such as broken supply-chains, workers not being able to report to work, and restrictions and delays at borders that affect contractors and suppliers’ ability to implement contracts. Most procurement specialists are in countries where the World Bank now requires work from home: this can slow coordination with other project team members as well as implementation units. ? Challenges posed by the outbreak One of these is the state of the market for supplies and workforce that are vital to contain and combat the pandemic. Goods and services are not readily available, and we’re seeing price inflation as demand across the globe far exceeds the supply. Under normal circumstances, the global market regulates itself. But we are now in an unprecedented situation, where there is neither an automatic correction of the markets nor a global regulation in place to address market failures. And as COVID-19 is progressing very rapidly, new cases are being reported in many countries across the world, which makes the assessment of needs very difficult. Impact on ongoing operations: Procurement processes may be delayed or cancelled in some ongoing projects because of COVID-19. The procurement specialists are advising countries on actions to take, but there is a strong possibility of contracts being delayed or terminated due to force majeure situations, as contractors and suppliers are not able to carry out their contracts due to border closings or selfisolation. ? How are some of the issues being addressed
Several measures are being put in place to address the challenges. The Bank launched the Fast Track COVID-19 Facility at the start of April, and a set of templates and guidance notes has been prepared, including fast-track procurement measures. A client government can now choose from several streamlined and simplified processes, and contracts are now subject to ex-post review to accelerate procurement. Retroactive financing can be used up to 40% of the project’s amount. In addition, in some projects depending on the country context, quick disbursing components are being introduced, allowing disbursements from private sector imports against customs documents as proof of imports in the last 12 months. In terms of logistics, staff are conducting all meetings virtually and connecting daily for COVID-19 projects. They are also constantly in touch with government authorities by phone or Skype to provide advice, guidance, and support. Practice managers are providing constant support and motivation to staff on the ground, keeping them informed and holding regular face-to-face WebEx meetings to discuss staff and family welfare, as well as solutions to complex and sensitive procurement issues. All procurement officers, across all regions, also meet regularly through virtual townhalls to exchange information and discuss strategies. In addition, regular meetings are being held with other departments so that the response from the Bank is coordinated and effective.

4. With reference to medical supplies, critically discuss some of the issues that suppliers consider when setting up their product or service prices.

5. With the number of coronavirus (COVID-19) cases growing exponentially, countries have had to respond by procuring the necessary supplies from both big and small businesses to meet the increasing demand. In light of this, critically discuss the demerits associated with purchasing essential supplies from small businesses.

6. “Environmental or green purchasing is the integration of environmental considerations into purchasing policies, programmes and actions. The objective of green purchasing is to facilitate recycling, re-use and resource reduction”. Against this background, discuss some of the methods/actions that can be adopted in various areas towards greening the supply chain.