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German Development Bank (KFW)

GERMANY

[Procurement Procedures]
[Bilateral Assistance: -by Region -by Sector]
[Major Recipient Countries]

There are generally two forms of German bilateral aid: Financial Cooperation and Technical Cooperatiion. KfW administers Financial Cooperation independently according to guidelines established by the Federal Government. Funds are dispersed as long-term loans and grants used to finance development projects. Technical Cooperation is conducted by the German Agency for Technical Cooperation (GTZ), with which KfW closely cooperates at the country level.

Procurement Procedures:

Eligibility: Goods and services for projects financed under Financial Cooperation are procured competitively, though bidding may be limited to businesses established in the Federal Republic of Germany if competition is satisfactory. The tender for goods and services may also be limited to the developing country due to the nature of the good (small quantities, broad regional distribution) or for technical reasons (standardization, follow-up orders). Technical Cooperation delivered through GTZ is more closely tied to German firms.

Registration: There are no pre-existing registration requirements for bidding on KfW financed projects. Prequalification takes place in the case of large or technically complex projects based on the ability of interested firms to provide the required goods and services satisfactorily.

Procurement Rules: In principle, goods and services for projects financed under German Financial Cooperation is procured by the purchaser by way of international competitive bidding. Exceptions are made when there are only a limited number of suppliers of the goods required (when restricted competitive bidding is used) or when technical or financial reasons justify it. The project-executing agency or local partner is responsible for the preparation and implementation of the project with the assistance of KfW. The executing agency officially puts the contracts for goods and works out to public tender, though KfW must review and approve the awarding of any contract.
For more information, see KFW's Guidelines for Procurement and Guidelines for the Assignment of Consultants.

Finding Opportunities: At a minimum, tenders relating to projects funded under German Financial Cooperation are stored in the database of the Federal Office for Foreign Trade Information (bfAI under Auslandsausschreibungen). The daily "News for Foreign Trade" (Nachrichten für den Außenhandel) (NfA) also publishes notices, unless the tender is limited to a single developing county. In such cases, notices are published in the national media of that country.

 
Bilateral Assistance (in $USD millions): 2002
  ODA1 Of which:
LDC2
OA3 Total
  $1,196.5 $263.2 $9.7 $1,206.2
1 Official Development Assistance (assistance to low and middle income developing countries)
2 Assistance to the Least Developed Countries
3 Official Aid (assistance to Central/Eastern Europe and more advanced developing countries)
 
 
Bilateral Assistance By Region (in $USD millions)
  2002 Share
East Asia & the Pacific $262.3 21.7%
Sub-Saharan Africa $260.1 21.6%
South Asia $237.5 19.7%
Latin America & the Caribbean $186.5 15.5%
Europe & Central Asia $176.4 14.6%
Middle East & North Africa $83.4 6.9%
 
 
Bilateral Assistance By Sector (in $USD millions)
  2002 Share
Water & Sanitation $201.3 16.7%
Financial Sector $184.3 15.3%
Multisector $181.5 15.0%
Transport & Storage $175.8 14.6%
Energy $111.5 9.2%
Education $81.3 6.7%
Health Care $74.7 6.2%
Agriculture, Fisheries, & Forestry $69.9 5.8%
 
Major Recipient Countries (in $USD millions)
  2002 Share
India $173.7 14.4%
Indonesia $93.2 7.7%
Turkey $73.1 6.1%
China $72.0 6.0%
South Africa $45.4 3.8%
Philippines $44.7 3.7%
Afghanistan $32.7 2.7%
Bolivia $31.0 2.6%
Vietnam $30.4 2.5%
Dominican Republic $30.1 2.5%
Top 10 Total $626.4 51.9%
 
 

Last Updated:
2004-05-20

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