RESTRICTED
WORLD TRADE WT/WGTGP/W/3
9July1997
ORGANIZATION(97-2863)
Working Group onTransparency
inGovernment Procurement
TRANSPARENCY-RELATED PROVISIONS INEXISTING INTERNATIONAL
INSTRUMENTS ONGOVERNMENT PROCUREMENT PROCEDURES
AND INWTO AGREEMENTS
Note bytheSecretariat
Table ofcontents
A. TRANSPARENCY-RELATED PROVISIONS INEXISTING INTERNATIONAL
INSTRUMENTS ONGOVERNMENT PROCUREMENT
Page
I. Introduction 3
II. International instruments onprocurement 4
III. Procurement methods 5
IV. Information onnational legislation andprocedures 7
V. Information onprocurement opportunities, tendering andqualifications 8
(a) Notice ofinvitation totender orprequalify 8
(i) How public notice should begiven 8
(ii) Information content ofnotices ofinvitation 9
(b) Tender documents 11
(c) Clarification 16
(d) Promptness andtimeliness ofprior information anddeadlines 16
VI. Transparency ofdecisions onqualification 18
(a) Transparency ofcriteria 18
(b) Notification andlisting 18
VII. Transparency ofdecisions oncontract awards 19
(a) Transparency ofcriteria 19
(b) Receipt andopening oftenders 21
(c) Ex-post information oncontract awards 23
VIII. Review 24
IX. Other matters related totransparency 26
(a) Maintenance ofrecord ofproceedings 26
(b) Information technology 27
(c) Language 27WT/WGTGP/W/3
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Page
X. Information tobeprovided toother governments 28
(a) Information onnational legislation 28
(b) Notification ofnational legislation 29
(c) Information oncontract awards 29
(d) Statistical information 29
B. TRANSPARENCY PROVISIONS INWTO AGREEMENTS
I. Introduction 30
II. Publication 30
(a) Publication 30
(b) Timing ofpublication 34
III. Public notice ofproposed regulations 35
IV. Provision ofinformation inresponse torequests from other Members 35
V. Provision ofinformation inresponse torequests from economic operators 37
VI. Treatment ofconfidential information 38
_______________
1. Asrequested oftheSecretariat atthefirstmeeting oftheWorking Group onTransparency
inGovernment Procurement heldon23May1997, thisnoteprovides factual information onthe
provisions related totransparency ininternational instruments ongovernment procurement (Part A)
andintheWTO Agreements (PartB).Incompiling PartA,information onthefollowing international
instruments hasbeenincluded:
- UNCITRAL Model LawonProcurement ofGoods, Construction andServices (1995)
(Model Law)
- Guidelines onProcurement under IBRD Loans andIDACredits (1996) andGuidelines
onSelection andEmployment ofConsultants byWorld BankBorrowers (1997) (World
Bank Guidelines, respectively forgoods andworks andforconsultants 'services)
- WTO Agreement onGovernment Procurement (1994) (GPA).
2. Thecontents ofthenoteshould notbetaken toprejudge what isencompassed bytheterm
"transparency", which isamatter fortheWorking Group. Itspurpose istoprovide background
information thatmaybeuseful totheWorking Group initsstudy oftransparency ingovernment
procurement practices.WT/WGTGP/W/3
Page3
PART A
TRANSPARENCY-RELATED PROVISIONS ININTERNATIONAL INSTRUMENTS ON
GOVERNMENT PROCUREMENT
I. INTRODUCTION
3. Promoting transparency inprocurement procedures isoneoftheexplicit considerations that
guide therequirements intheModel Law(Preamble, paragraph (f)),theGPA(Preamble, paragraph 3),
theWorld Bank Guidelines forgoods andworks (paragraph 1.2(d)) andtheWorld Bank Guidelines
forconsultants 'services (paragraph 1.4(e)). Transparency canbeviewed asalinchpin oftheother
common objectives oftheseinstruments, which are,among others: maximizing economy andefficiency
inprocurement; fostering andencouraging participation inprocurement proceedings bysuppliers;
giving allsuppliers equal opportunity tocompete regardless ofnationality andthereby promoting
liberalization ofinternational trade; andpromoting theintegrity andfairness ofandpublic confidence
intheprocurement process.
4. Thetransparency provisions ofthethree international instruments areaimed atthree setsof
interested parties:
- Suppliers. Thefulfilment oftheobjectives ofprocurement regimes requires that
potential suppliers should beabletoobtain readily adequate information onprocurement
opportunities, ontheconditions tobemettoqualify forthemandonallmatters relevant
tothepreparation andsubmission ofbids. Their participation willalsobeenhanced
ifprocurement procedures areperceived bythem asfairandequitable.
- Legislatures andthegeneral public. Transparency isanecessary condition for
procurement regimes anddecisions tobeaccountable, inparticular intheuseofpublic
or,inthecaseoftheWorld Bank, international funds. Forthispurpose decisions must
notonlybeimpartial, butalsoseentobeimpartial. Thiscallsforobjective criteria,
made known inadvance, forthetaking ofsuchdecisions, thereceipt andopening of
tenders under procedures guaranteeing theregularity ofthetender openings andex-post
information onthecontracts awarded aswellasreview possibilities.
- Other governments. Under theWTO Agreement onGovernment Procurement, each
Party accepts obligations vis-à-vis other Parties totheAgreement, notonlytoensure
thatthesuppliers ofthose Parties benefit from adequate information andtransparent
procedures, butalsotoprovide information directly toother Parties onitsprocurement
procedures anddecisions taken under it.
5. PartAofthisnotestarts byoutlining themain characteristics ofthethree instruments
(Section II).Itthenlooks atthepreferred andsupplementary procurement methods provided forin
them andtherelation ofthese methods totransparency considerations (Section III). Theremaining
sections ofPartAconcern particular aspects oftransparency: information onnational legislation and
procedures(SectionIV);informationonprocurementopportunities,includingtenderingandqualification
(Section V);transparency ofdecisions onqualification (Section VI); transparency ofdecisions on
contract awards (Section VII); review (Section VIII); othermatters related totransparency (Section IX);
andinformation tobeprovided bygovernments (Section X).WT/WGTGP/W/3
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II. INTERNATIONAL INSTRUMENTS ONPROCUREMENT
6. There exist atpresent three international instruments ontheprocedures andpractices of
governments intheareaofprocurement:
(i) TheUNCITRAL Model LawonProcurement ofGoods, Construction andServices
wasdrawnupbytheUnitedNationsCommissiononInternationalTradeLaw(theUNCITRAL)1
toserve asamodel forStates fortheevaluation andmodernization oftheirprocurement laws
andpractices andtheestablishment ofprocurement legislation where nonepresently exists.
Asaframework law,theModel Lawisintended toprovide alltheessential principles and
procedures forconducting procurement proceedings inthevarious typesofcircumstances likely
tobeencountered byprocuring entities. Inlinewiththemandate ofUNCITRAL topromote
international trade andthenotion underlying theModel Lawthatthewider thedegree of
competition thebetter thevalue received forpublic expenditures, theModel Lawasageneral
rulepromotes non-discrimination. Under theModel Lawthisisgiven effect bytheprocedures
designed, forexample, toensure thatnon-national suppliers aregiven adequate transparency.
Atthesame timetheModel Lawrecognizes thattheenacting States mayinsome cases wish
torestrict participation byforeign suppliers withaviewtoprotecting certain domestic industries
orforother legitimate reasons. However, withaviewtopromoting transparency, anysuch
restrictions aresubject totherequirement thattheimposition oftherestriction bytheprocuring
entity should bebased onlyongrounds specified intheprocurement regulations orinother
legislation.2
(ii) TheGuidelines forProcurement under IBRD Loans andIDACredits andtheGuidelines
forSelection andEmployment ofConsultants bytheWorld Bank Borrowers havethepurpose
ofinforming those World Bank Borrower countries ortheiragencies (Borrowers) carrying
outaproject thatisfinanced inwhole orinpartbyaloanfrom theInternational Bank for
Reconstruction andDevelopment (IBRD) oracredit from theInternational Development
Association (IDA) ofthearrangements tobemade forprocuring thegoods andworks andthe
procedures forselecting, contracting andmonitoring consultants3required fortheproject.
Inmostcases theBank requires itsBorrowers toobtain goods andworks through International
CompetitiveBiddingopentoalleligiblesuppliersandcontractors,withallowanceforpreferences
fordomestically manufactured goods andworks under prescribed conditions.4TheWorld Bank
1UNCITRAL isanorgan oftheUnited Nations General Assembly established topromote theharmonization
andunification ofinternational trade law,soastoremove unnecessary obstacles tointernational trade caused
byinadequacies anddivergences inthelawaffecting trade.
2UNCITRAL Model LawGuidelines p.58 andModel LawArticle 8(1)and(2)
3Forthepurposes oftheWorld Bank Guidelines, theterm "consultants" includes awide variety ofprivate
andpublic entities, including consulting firms, engineering firms, construction managers, management firms,
procurement agents, inspection agents, auditors, UNagencies andother multilateral organizations, investment
andmerchant banks, universities, research institutions, government agencies, non-governmental organizations
andindividuals.BankBorrowersusetheseorganizationsas"consultants"tohelpinawiderangeofactivities-such
aspolicyadvice;institutionalreforms;management;engineeringservices;constructionsupervision;financial
services; procurement services; social andenvironmental studies; andidentification, preparation, and
implementation ofprojects -tocomplement Borrowers 'capabilities inthese areas.
4World Bank Guidelines ongoods andworks, paragraph 2.54 andAppendix 2WT/WGTGP/W/3
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Guidelines alsoallow forNational Competitive Bidding forprocurement ofgoods orworks
which, bytheirnature orscope, areunlikely toattract foreign competition.5
(iii) TheWTO Agreement onGovernment Procurement of1994 establishes anagreed
framework ofrights andobligations, among WTO Members Parties totheGPA, withrespect
totheir national laws, regulations, procedures andpractices intheareaofgovernment
procurementwithaviewtoachievinggreaterliberalizationandexpansionoftradeandimproving
theinternational framework fortheconduct ofworld trade. Thecornerstone oftherulesin
theGPA isnon-discrimination between thesupplier andsuppliers ofWTO Members Parties
totheGPA. TheGPAapplies totheprocurement ofgoods andservices, including construction
services, above certain threshold values anddefined bytheschedules ofeachParty contained
inAppendix ItotheGPA.6Certain derogations orexceptions arespecified intheSchedules
ofindividual Parties inAppendix ItotheGPA. Inorder toensure thatthebasic principle
ofnon-discrimination isfollowed andthataccess toprocurement isactually available toforeign
products, services andsuppliers, theGPA laysheavy emphasis onprocedures forproviding
transparencyoflaws,regulations,proceduresandpracticesregardinggovernmentprocurement.
III. PROCUREMENT METHODS
7. Various methods ofprocurement areusedbygovernment entities, according tocircumstances.
Allthree oftheinstruments covered bythisnotedescribe thespecific procurement methods thatmay
beusedanddefine theparameters fortheiruse.Theinstruments provide thatmore transparent methods
ofprocurement aretobefavoured where possible asbeing more likely tobeeffective inrealizing the
objectives ofprocurement systems, buttheseinstruments allow lessinherently transparent means when
circumstances warrant itand,insome instances, subject tospecial conditions often related toensuring
adequate transparency.
8. Asthemethod ofprocurement innormal circumstances, theModel Lawforesees theuseof
tendering forprocurement ofgoods andconstruction services and,forother services, principal method
forprocurement ofservices ,amethod designed togivedueweight intheevaluation process tothe
qualifications andexpertise oftheservice suppliers. Forthepurposes oftheGPA, theopentendering
procedures where allsuppliers maysubmit atender isapreferred method. TheWorld BankGuidelines
prescribe theuseofInternational Competitive Bidding intheprocurement ofgoods andworks and
Quality- andCost-Based Selection fortheselection ofconsultants 'services asthemain method.
9. Forexceptional andwell-defined circumstances, inwhich theabove preferred methods are
notconsidered bytheprocuring entity tobeanappropriate orfeasible method forprocurement, the
threeinstruments offeralternative methods ofprocurement which provide alesser degree ofcompetition
among suppliers compared totheprincipal method. Therefore, conditions ontheuseofother methods
havebeenincluded inallthreeinstruments toavoid unjustified resort tothese methods ofprocurement
andtolimittheirusetoexceptional cases, while safeguarding theobjectives ofnon-discrimination among
suppliers andtransparency oftheprocurement process. TheModel Lawgives theoptions oftwo-stage
tendering ,requests forproposals andcompetitive negotiations where itisnotfeasible fortheprocuring
entity toformulate specifications tothedegree ofdetail required under thetendering method forgoods,
forexample intheprocurement ofhightechnology goods orunder theprincipal method ofprocurement
forservices. These methods givetheprocuring entity anopportunity tonegotiate withsuppliers with
aview tosettling upon technical specifications andcontractual terms. With regard totheselection
5World Bank Guidelines ongoods andworks, paragraph 3.3and3.4
6GPA Article III:2WT/WGTGP/W/3
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ofsuppliers, theModel Lawoffers arestricted tendering method which permits theprocuring entity
tosolicit participation onlyfromalimited number ofsuppliers forprocurements ofatechnically complex
orspecialized nature; arequest forquotations orshopping method withsimplified andaccelerated
procedures under which theprocuring entity isallowed tosolicit quotations from asmall number of
suppliers forcases oflow-value procurement ofstandardized goods orservices; andsingle source
procurementforexceptionalcircumstances,suchasseriouseconomicurgencyduetocatastrophicevents.
Withaviewtoproviding transparency asregards decisions ofprocuring entities touseanexceptional
method ofprocurement rather thanthemethod thatisnormally required, theModel Lawcontains a
requirement thatanysuchdecision should besupported intherecord ofprocurement proceedings
provided under Article 11oftheModel Lawbyastatement ofthegrounds andcircumstances onwhich
theentity hasrelied tojustify theuseofthemethod inquestion.7
10. TheGPAprescribes twomethods ofprocurement otherthanopentendering procedures. Under
selective tendering procedures, those suppliers invited todosobytheentity maysubmit atender.8
Inorder toensure optimum effective international competition under thismethod, purchasing entities
arerequired toinvite tenders fromthemaximum number ofdomestic andforeign suppliers consistent
withtheeffective operation oftheprocurement system. Anumber ofsafeguards toensure non-
discrimination intheprocedures andconditions forqualification ofsuppliers aresetoutinArticle VIII.
Under limited tendering procedures, theentity contacts thepotential suppliers individually.9Because
oftheinherently non-transparent nature ofthismethod, theGPA closely circumscribes thesituations
inwhich itcanbeused; itispermitted, forexample, intheabsence ofresponsive tenders under open
orselective procedures, when theproduct orservice canbesupplied onlybyaparticular supplier,
orforreasons ofextreme urgency brought about byevents unforeseeable totheentity.10TheGPA
subjects thismethod tospecial transparency conditions which require entities toprepare areport in
writing oneachcontract awarded which should include, interalia,astatement oftheconditions referred
toinArticle XVthatjustified thelimited tendering. Furthermore, entities mayholdnegotiations with
suppliers making tenders, provided thisisindicated intheinitial tender notice oritappears fromthe
tender evaluation thatnoonetender isthemostadvantageous, andsubject tospecified safeguards to
ensure thatsuchnegotiations donotdiscriminate between suppliers.11
11. TheWorld Bank Guidelines allow Modified International Competitive Bidding withsimplified
advertising andcurrency provisions tobeusedinthecaseofquick disbursement loansorinprocurement
ofcommodities. Other methods ofprocurement which areusedincircumstances which necessitate
departures fromtheInternational Competitive Bidding method procedures are:Limited International
Bidding which isessentially International Competitive Bidding bydirect invitation andwithout open
advertisement andusedwhere thecontract values aresmall orwhere there isonlyalimited number
ofsuppliers orother exceptional reasons12;National Competitive Bidding ,normally usedforpublic
procurement inthecountry oftheBorrower, which isconsidered tobethemostefficient andeconomical
wayofprocuring goods orworks which, bytheir nature orscope, areunlikely toattract foreign
7Model LawArticle 18(4)
8GPA Articles VII:3(b) andX
9GPA Article VII:3(c)
10GPA Article XV
11GPA Article XIV
12World Bank Guidelines ongoods andworks; paragraph 3.2WT/WGTGP/W/3
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competition13;Shopping (international andnational) which isbased oncomparing price quotations
obtained from several suppliers toassure competitive prices andisappropriate forprocuring readily
available off-the-shelf goods orstandard specification commodities thataresmall invalue14;andDirect
Contracting Without Competition (single source)15usedunder conditions similar tothoseofsingle source
procurement under theModel Laworlimited tendering under theGPA. Asalternatives totheprincipal
method ofselection ofconsultants, Quality- andCost-Based Selection ,theWorld Bank Guidelines
prescribe Quality-Based Selection forcomplex orhighly specialized assignments orforthose which
invite innovations.16Other methods ofselection ofconsultants under theWorld Bank Guidelines, with
specifiedconditionsfortheiruse,includeSelection under aFixed Budget ,Least-Cost Selection ,Selection
Based onConsultants 'Qualifications andSingle-Source Selection .17
12. While many ofthespecific requirements relating totransparency referred tointhelatersections
ofthisnoteconcern transparency under anyoftheallowable procurement methods, itshould benoted
thatsome ofthespecific requirements relate more directly topreferred methods ofprocurement.
IV. INFORMATION ONNATIONAL LEGISLATION AND PROCEDURES
13. Government procurement activities aregenerally regulated through lawsatthecentral orsub-
centrallevelsofgovernmentsupplementedbyadministrativerulingsanddirectivesofgeneralapplication.
TheModel LawandtheGPArequire thepublic accessibility oftherelevant texts.18TheGPAexplicitly
requires theGPA Parties topublish anylaw,regulation, judicial decision, administrative rulings of
general application andanyprocedure regarding government procurement (including standard contract
clauses) insuchamanner astoenable other GPA Parties andsuppliers tobecome acquainted with
them. Thepublications inwhich individual GPAParties publish theirrespective national legislations
havetobeidentified inAppendix IVtotheGPA.19TheWorld Bank Guidelines arepublished bythe
World Bank andmade available toBorrowers.20
14. TheGPAalsoprovide forother means bywhich suppliers and/or other governments canobtain
information onnational procurement procedures. Under theGPA eachentity shall, onrequest from
asupplier ofaGPA Party, promptly provide anexplanation ofitsprocurement practices and
procedures.21TheGPAParties arealsorequired toprovide thechallenge procedures under Article XX
inwriting andmake them generally available.22
13World Bank Guidelines ongoods andworks, paragraph 3.3-3.4
14World Bank Guidelines ongoods andworks, paragraph 3.5-3.6
15World Bank Guidelines ongoods andworks, paragraph 3.7
16World Bank Guidelines onselection ofconsultants, paragraph 3.2-3.4
17World Bank Guidelines onSelection ofconsultants, paragraph 3.5to3.11
18Model LawArticle 5;GPA Article XIX:1
19GPA Article XIX:1
20World Bank Guidelines ongoods andworks, paragraph 1.1;World Bank Guidelines consultants 'services,
paragraph 1.1
21GPA Article XVIII:2(a)
22GPA Article XX:3WT/WGTGP/W/3
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V. INFORMATION ON PROCUREMENT OPPORTUNITIES, TENDERING AND
QUALIFICATION
15. Thethreeinstrumentsrecognizethattimely,sufficientlydetailedandreadilyavailableinformation
onopportunities tobidforspecific contracts isessential forguaranteeing effective competition. They
laydown detailed provisions ontheadvance information thatentities mustprovide ontheirintended
procurements. Where prequalification isanecessary condition fortendering, information must be
provided ontheprocedures andcriteria thathavetobefulfilled inorder foraninterested potential
supplier toqualify.
(a) Notice ofinvitation totender ortoprequalify
(i) Howpublic notice should begiven
16. Therelevant provisions inthethree instruments setforth asetofminimum procedures for
giving public notice oftendering opportunities thattheprocuring entity should follow inorder toobtain
expressions ofinterest inaspecific procurement frompotential suppliers. Under theModel Lawand
theGPA, theinformation onanintended procurement mustbeadvertised primarily through anotice
ofinvitation toparticipate intheintended procurement.23Thepublications inwhich individual GPA
Parties publish theirnotices ofinvitations totender havetobeidentified inAppendix IItotheGPA.24
TheWorld Bank Guidelines require theBorrower country tonotify theprojects which include
procurement ofgoods andworks onthebasis ofInternational Competitive Bidding oranyexpected
consultancy assignments through aGeneral Procurement Notice onthebasis ofadraftprepared and
submitted totheBankbytheBorrower. TheBorrower country mustnotify theinternational community
inatimely manner oftheopportunities tobidforspecific procurement ofgoods andworks through
invitations tobidadvertised intheformofSpecific Procurement Notices.25Forselection ofconsultants,
thepreparation ofrequests forproposals shallinvolve aLetter ofInvitation which shallstatetheintention
oftheBorrower toenter intoacontract forprovision ofconsultancy services.26
17. Allthreeinstruments foresee thepublication ofanotice ofinvitation toparticipate inanofficial
gazette orother official journal.27Moreover, tocreate awareness oftheprocurement opportunity in
theinternational community, theModel LawandtheWorld Bank Guidelines require thenotice of
invitation totender alsotobepublished inanewspaper orarelevant trade publication inalanguage
customarily usedininternational trade, inatechnical magazine oraprofessional journal ofwide
international circulation.28Under theWorld Bank Guidelines theinvitations tobidforgoods orworks
orlistsofconsultancy assignments which areadvertised intheGeneral Procurement Notice andthe
23Model LawArticles 24(2), 37(2) and48(2); GPA Article IX:1
24GPA Article IX:1
25World Bank Guidelines ongoods andworks, paragraph 2.7,2.8and2.10 andonconsultants 'services
26World Bank Guidelines onconsultants 'services, paragraph 2.9
27Model LawArticle 24(1) andGPA Article IX:1
28Model LawArticle 24(2); World Bank Guidelines forgoods andworks paragraph 2.8andonconsultants '
services, paragraph 2.5WT/WGTGP/W/3
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Specific Procurement Notices arepublished inDevelopment Business .29World Bank Borrowers are
alsoencouraged totransmit invitations toembassies andtrade representatives ofcountries oflikely
suppliers andcontractors.30
18. TheGPA requires thatanyamendment orre-issue ofanotice ofinvitation totender, after
publication ofaninvitation toparticipate inanintended procurement butbefore thetimesetforopening
orreceipt oftenders, shallbegiven thesame circulation astheoriginal documents upon which the
amendment isbased.31
(ii) Information content ofnotices ofinvitation
19. Allthree instruments require entities toinclude aminimum amount ofinformation intheir
invitations totender sufficient toenable suppliers toassess theirinterest intheintended procurement
andtofacilitate theirparticipation intendering procedures.32Thethree instruments referbroadly to
thesame elements. Thespecific elements identified inoneormore ofthese instruments arelisted
below, withtheinstrument thatexplicitly contains thatelement identified inthefootnotes:
ontheintended procurement :
- thename andaddress oftheentity responsible fortheprocurement, awarding the
contract andproviding anyinformation necessary forobtaining specifications andother
documents33ordetails oftheclient ofconsultancy services34;
- thescope oftheprocurement withdetails onthenature andthequantity ofthegoods
andservices tobeprocured ortheconstruction tobeeffected35;
- anyoptions forfurther procurement; thenature andquantity ofanyrecurring
contracts36;
- thetime-table forthesupply ofgoods, theprovision ofservices orforthecompletion
oftheconstruction.37Ifpossible, anestimate ofthetiming when anyoption forfurther
29Development Business (UNDB) isapublication oftheUnited Nations Department ofPublic Information,
UNPlaza, NewYork, NewYork 10017, USA. ADevelopment Business office ismaintained attheWorld Bank,
1818 HStreet, N.W., Washington D.C., 20433, USA.
30World Bank Guidelines ongoods andworks, paragraph 2.8andonconsultants 'services, paragraph 2.5
31GPA Article IX:10
32Model Law25(1); GPA Article IX:6-8
33Model LawArticles 25(1)(a) and37(1); GPA Article IX:6(e); World Bank Guidelines ongoods andworks,
paragraph 2.7
34World Bank Guidelines onconsultants 'services, paragraph 2.9
35Model LawArticles 25(1)(b) and37(1); GPA Article IX:6(a); World Bank Guidelines forgoods andworks,
paragraph 2.7andonconsultants 'services, paragraph 2.3
36GPA Article IX:6(a)
37Model LawArticle 25(1)(c); GPA Article IX:6(c)WT/WGTGP/W/3
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procurement maybeexercised; inthecaseofrecurring contracts anestimate ofthe
timing ofthesubsequent tender notices38;
- theplace ofdelivery ofthegoods tobesupplied, thelocation where services areto
beprovided orwhere theconstruction istobeeffected39;
regarding suppliers :
- anyeconomic andtechnical requirements, financial guarantees andinformation
required40;
- thecriteria andprocedures tobeusedforevaluating thequalifications ofsuppliers.41
Tofacilitate obtaining tender documents orprequalification documents bysuppliers interested inbidding
fortheintended procurement, theprocuring entity shallalsoprovide information regarding :
- themeans ofobtaining thedocuments andtheplace fromwhich theymaybeobtained42;
- theprice charged43andthecurrency andmeans ofpayment fordocuments44;
- thescheduled datefortheavailability ofthedocuments45;
- thelanguage orlanguages inwhich thedocuments areavailable46;
andinformation regarding submission ofapplications totender ortoprequalify :
- theaddress forsubmitting anapplication tobeinvited totender orforqualifying for
thesuppliers 'listsaswellasforsubmission orreceiving tenders47;
38GPA Article IX:6(a)
39Model LawArticles 25(1)(b) and37(1)
40GPA Article IX:6(f)
41Model LawArticle 25(1)(d)
42Model LawArticles 25(1)(f), 25(2)(a) and37(1)
43Model LawArticles 25(1)(g), 25(2)(b) and37(1)
44Model LawArticle 25(1)(h) and(2)(c); GPA Article IX:6(g)
45World Bank Guidelines ongoods andworks, paragraph 2.7
46Model LawArticle 25(1)(i) and(2)(d)
47GPA Article IX:6(d); Model LawArticle 25(1)(j); World Bank Guidelines ongoods andworks,
paragraph 2.43 andonconsultants 'services, paragraph 2.9WT/WGTGP/W/3
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- thedeadline forthesubmission orreceipt oftenders48;
- thelanguage orlanguages inwhich application tobeinvited totender orqualify for
thesuppliers 'listmust besubmitted.49
20. Under theWorld Bank Guidelines onconsultants 'services, thedocument prepared forthe
assignment called theTerms ofReference shall define theobjectives, goals andthescope ofthe
assignment andprovide background information tofacilitate theconsultants 'preparation oftheir
proposals. Terms ofReference shall alsolisttheservices andsurveys necessary tocarry outthe
assignment andtheexpected results, forexample reports, data, maps orsurveys.50
21. Under theGPA, invitations totender shallcontain certain other specific information ,including
information concerning themethod ofprocurement applied (open, selective, negotiated procedures)51
andonthemode ofprocurement (purchase, lease, rental orhirepurchase).52
22. Since theGPA obligations onlyapply toprocurement bythose entities explicitly covered in
theschedules ofindividual GPAParties inAppendix ItotheGPAsubject toexceptions contained therein
andtogoods andservices above specified threshold values, thenotices ofinvitation toparticipate in
intended procurements orthepublication inwhich suchnotices appear should indicate whether the
procurement forwhich tenders aresought issubject totheobligations oftheAgreement.53
23. Finally, under theGPA, being anintergovernmental agreement subscribed tobyParties using
different languages, entities mustpublish inanappropriate publication listed inAppendix II,foreach
caseofintended procurement, asummary notice oftheinvitation totender inoneoftheofficial languages
oftheWTO. Thenotice shallcontain atleastinformation regarding thesubject matter ofthecontract,
thetime-limits setforthesubmission oftenders oranapplication tobeinvited totender, andthe
addresses from which documents relating tothecontracts mayberequested.54
(b) Tender documents
24. Theinformation contained intender documents describes theneeds oftheprocuring entity
andestablishes asetofstandards which enables theprocuring entity tocompare thetenders submitted
inanobjective andfairmanner.55Tender documents alsosetouttherulesandprocedures withwhich
aprospective tenderer should comply inpreparing andsubmitting aresponsive tender. Thelevelof
detail andcomplexity oftender documents mayvarywiththesizeandnature oftheintended procurement
buttheyshould include, atleast, theinformation thatisrequired tobepublished inthenotice ofintended
48Model Law Article 25(1)(j); GPA Article IX:6(d); World Bank Guidelines ongoods andworks,
paragraph 2.43 andonconsultants 'services, paragraph 2.9
49GPA Article IX:6(d)
50World Bank Guidelines onconsultants 'services, paragraph 2.3
51GPA Article IX:6(b)
52GPA Article IX:6(h)
53GPA Article IX:11
54GPA Article IX:8
55UNCITRAL Guidelines p.80WT/WGTGP/W/3
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procurement.56Thethree instruments refer broadly tothesame elements.57Thespecific elements
identified inoneormore ofthethree instruments arelisted below, withtheinstrument thatexplicitly
specifies those elements identified inthefootnotes:
regarding theprocuring entity:
- theaddress oftheentity towhich tenders should besent58;
- theaddress where requests forsupplementary information orrequests forclarification
should besent59andthename, functional titleandaddress ofoneormore officers or
employees oftheprocuring entity whoareauthorized tocommunicate withsuppliers
inconnection with theprocurement proceedings, without theintervention ofan
intermediary60;
regarding theintended procurement :
- acomplete description oftheproducts orservices orconstruction tobeprocured61,
abriefdescription oftheconsultancy assignment62;
- where theprocurement isforgoods, thequantity oforalistofthegoods tobe
procured63;
- anyrequirements (including technical andquality specifications, standards, minimum
performance requirements, conformity certification) tobefulfilled andthetestmethods
thatwillbeusedtoassess theconformity oftheequipment orworks withthose
specifications64;
56Model LawArticles 26and27(a); GPA Article XII:2
57TheWorld Bank Borrowers useStandard Bidding Documents (SBDs) published bytheBank forvarious
types ofprocurement (World Bank Guidelines ongoods andworks, paragraph 2.12). Where noSBDs have
been issued, theBorrower usesother standard conditions ofcontract orcontract forms acceptable totheBank.
Forselection andemployment ofconsultants theBorrower usesthestandard Request forProposals (RFPs) which
includesaletterofInvitation,InformationtoConsultants(ITC),theTermsofReference,andtheproposedcontract
(World Bank Guidelines onconsultants 'services paragraph 2.8and2.10 andAppendix 2).
58GPA Article XII:2(a)
59GPA Article XII:2(b) andWorld Bank Guidelines onconsultants 'services, Appendix 2(c)
60Model LawArticle 27(u)
61Model LawArticle 27(d); GPA Article XII:2(g)
62World Bank Guidelines onconsultants 'services, Appendix 2(a)
63Model LawArticle 27(d); World Bank Guidelines ongoods andworks, paragraph 2.11
64Model Law Article 27(d); GPA Article XII:2(g); World Bank Guidelines ongoods andworks,
paragraphs 2.11 and2.16WT/WGTGP/W/3
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- necessary plans, drawings, designs andinstructional materials65;
- ifalternatives tothecharacteristics ofthegoods, construction orservices, designs,
materials, completion schedules, payments terms, contractual terms andconditions
orother requirements setforth inthetender documents arepermitted, astatement to
thateffect, andadescription ofthemanner inwhich alternative tenders aretobe
evaluated andcompared66;
- thewarranty andmaintenance requirements67;
- thelocation ofdelivery ofthegoods tobesupplied, services tobeprovided or
installation oftheconstruction68;
- thedelivery timeorschedule ofcompletion ofthegoods, theconstruction tobeeffected
ortheservices tobeprovided69;
- ifsuppliers orcontractors arepermitted tosubmit tenders foronlyaportion ofthe
goods, construction orservices tobeprocured, adescription oftheportion orportions
forwhich tenders maybesubmitted70;
- themanner inwhich thetender price istobeformulated andexpressed, including a
statement astowhether thepriceistocover elements other thanthecostofthegoods,
construction orservices themselves, suchasanyapplicable transportation andinsurance
charges, inspection costsaswellascustoms duties andothercharges ortaxesapplicable
toimported goods71;
- thecurrency orcurrencies inwhich thetender priceistobeformulated andexpressed72
andtheexchange ratethatwillbeusedfortheconversion oftenders intothatcurrency
orastatement thattheratepublished byaspecified financial institution prevailing on
aspecified datewillbeused73;
65Model Law27(d); GPA Article XII:2(g)
66Model LawArticle 27(d) and(g); World Bank Guidelines ongoods andworks, paragraph 2.17
67World Bank Guidelines ongoods andworks, paragraph 2.16
68Model LawArticle 27(d); World Bank Guidelines ongoods andworks, paragraph 2.16
69Model LawArticle 27(d); World Bank Guidelines ongoods andworks, paragraph 2.11and2.16andon
consultants 'services, Appendix 2(p)
70Model LawArticle 27(h)
71Model LawArticle 27(i)
72Model Law Article 27(j); GPA Article XII:2(h); World Bank Guidelines onconsultants 'services,
Appendix 2(i)
73Model LawArticle 27(s)WT/WGTGP/W/3
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regarding suppliers :
- anyeconomicandtechnicalrequirements,financialguaranteesandanyotherinformation
orevidence required from suppliers74;
- requirements astodocumentary evidence orother information thatmustbesubmitted
bysuppliers todemonstrate theirqualification75;
- thecriteria andprocedures relative totheevaluation ofthequalifications ofsuppliers76;
regarding evaluation oftenders orproposals:
- thecriteria tobeusedbytheprocuring entity indetermining thesuccessful tender and
forawarding thecontract, including anymargin ofpreference andanyfactor other
thanpricetobeconsidered intheevaluation oftenders, suchasinsurance andinspection
costs, customs duties andother import charges, taxes andcurrency ofpayment for
imported goods andtherelative weight ofsuchcriteria77andthewayinwhich such
factors willbequantified orotherwise evaluated78;
regarding submission andreceipt oftenders orproposals :
- themanner, place anddeadline forthesubmission oftenders, applications toprequalify
orproposals79;
- theclosing dateandtimeforreceipt oftenders andthelength oftimeduring which
anytender should beopenforacceptance80;
- theperiod oftimeduring which tenders shallbeineffect orconsultants 'proposals
shallbeheldvalid81;
- thelanguage orlanguages inwhich tenders must besubmitted82;
74GPA Article XII:2(f); Model LawArticle 27(c)
75Model LawArticles 7(3)(a)(iii) and27(c)
76Model LawArticle 27(b)
77Model LawArticle 27(e); GPA Article XII:2(h)
78World Bank Guidelines ongoods andworks, paragraph 2.11, 2.17and2.51andonconsultants 'services,
paragraph 2.10 andAppendix 2(d)
79Model LawArticles 7(3)(a)(iv) and27(n); World Bank Guidelines onconsultants 'services, Appendix 2(h)
and(l)
80GPA Article XII:2(d)
81Model LawArticle 27(p); World Bank Guidelines onconsultants 'services, Appendix 2(o)
82GPA Article XII:2(c)WT/WGTGP/W/3
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regarding opening oftenders :
- theplace, dateandtimeof,andpersons authorized tobepresent at,theopening of
tenders83;
- theprocedures tobefollowed foropening andexamining tenders84;
regarding theprocurement contract :
- theterms andconditions oftheprocurement contract, bothgeneral andspecial, tothe
extent theyarealready known totheprocuring entity, andthecontract form, ifany,
tobesigned bytheparties85;
- theterms ofpayment86;
- anyformalities thatwillberequired, onceatender hasbeenaccepted, foraprocurement
contract toenter intoforce, including, where applicable, thesigning ofawritten
procurement contract andapproval byahigher authority ofthegovernment together
withtheestimated period oftimefollowing thedispatch ofthenotice ofacceptance
thatwillberequired toobtain theapproval87;
andregarding certain other matters :
- anyrequirements oftheprocuring entity withrespect toanytender security tobe
provided bysuppliers including theissuer andthenature, form, amount andother
principal terms andconditions88;
- anycommitments tobemade bythesupplier orcontractor outside oftheprocurement
contract, such ascommitments relating tocounter-trade ortothetransfer of
technology.89
25. Under theModel Law, atanytimepriortothedeadline forsubmission oftenders, theprocuring
entity may, foranyreason, whether onitsowninitiative orasaresult ofarequest forclarification
byasupplier orcontractor, modify thetender documents byissuing anaddendum. Theaddendum
shallbecommunicatedpromptlytoallsuppliersorcontractorstowhichtheprocuringentityhasprovided
thesolicitation documents andshallbebinding onthose suppliers orcontractors.90
83Model Law Article 27(q); GPA Article XII:2(e); World Bank Guidelines ongoods andworks,
paragraph 2.44
84Model LawArticle 27(r)
85Model LawArticles 7(3)(a)(ii) and27(f); World Bank Guidelines ongoods andworks, paragraph 2.11
86GPA Article XII:2(i)
87Model LawArticle 27(y)
88Model LawArticle 27(l) and(m)
89Model LawArticle 27(v)
90Model LawArticle 28(2)WT/WGTGP/W/3
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(c) Clarification
26. UndertheModelLawandtheWorldBankGuidelinestheprocuringentityisrequiredtorespond
toanyrequest byasupplier forclarification ofthetender documents orprequalification documents
within areasonable timepriortothedeadline forthesubmission oftenders orapplication toprequalify
soastoenable thesupplier tomake atimely submission ofitstender orapplication toprequalify.
Theprocuring entity isalsorequired, without identifying thesource oftherequest, tocommunicate
theclarification, anyadditional information, correction oferrors oranyother modifications toallother
suppliers towhich theprocuring entity hasprovided thetender documents. Therecord ofanymeeting
withanysuppliers shallalsobecommunicated toother suppliers.91
27. Under theGPA, entities arerequired toreplypromptly toanyreasonable request fromsuppliers
forexplanations relating totender documentation under openandselective procedures. Entities are
alsorequired toreply toanyreasonable request forrelevant information fromasupplier participating
inthetendering process oncondition thatsuchinformation doesnotgivethatsupplier anadvantage
overitscompetitors intheprocedure fortheaward ofthecontract.92Also, anysignificant information
given toonesupplier regarding invitations totender foraparticular intended procurement shallbe
given simultaneously toallothersuppliers concerned inadequate timetopermit thesuppliers toconsider
suchinformation andtorespond toit.93
28. UndertheWorldBankGuidelines,allprospectivebiddersshallbeprovidedthesameinformation,
andshall beassured ofequal opportunities toobtain additional information onatimely basis.94
Borrowers shallprovide reasonable access toproject sitesforvisits byprospective bidders. Forworks
orcomplex supply contracts, particularly forthose requiring refurbishing existing works orequipment,
apre-bid conference maybearranged whereby potential bidders maymeet withtheBorrower 's
representatives toseekclarifications. Minutes oftheconference shallbeprovided toallprospective
bidders withacopytotheBank.95
(d) Promptness andtimeliness ofprior information anddeadlines
29. TheModel LawandtheGPAemphasize theimportance ofpromptness intheaccess tonational
legislation andthepublication oftextsofrelevant legislation.96TheWorld Bank Guidelines ongoods
andworks emphasize thatspecific bidding opportunities should beadvertised toallthose interested
inbidding and,inparticular, totheinternational community inatimely manner toenable prospective
bidders toobtain prequalification orbidding documents andprepare andsubmit theirresponses.97
30. Allthreeinstruments provide thatsuppliers mustbegranted asufficient period oftimetoprepare
theirtenders. TheModel Lawrecognizes thatthelength ofthatperiod oftimemayvaryfrom case
91Model LawArticles 28(1) and(3)and7(4); World Bank Guidelines ongoods andworks, paragraph 2.18
92GPA Article XII:3(a)-(c)
93GPA Article IX:10
94World Bank Guidelines ongood andworks, paragraph 2.18
95World Bank Guidelines ongoods andworks, paragraph 2.18.
96Model LawArticle 5;GPA Article XIX:1
97World Bank Guidelines ongoods andworks, paragraph 2.7and2.8WT/WGTGP/W/3
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tocasedepending onthecircumstances ofthegiven procurement anditislefttotheprocuring entity
tofixthedeadline bywhich tenders must besubmitted.98
31. TheGPA prescribes certain minimum deadlines thatmust beallowed forthepreparation,
submission andreceipt oftenders toenable responsive tendering. Therelevant provisions alsocontain
general considerations thatshould govern when entities settime-limits fortendering anddelivery.
Anyprescribed time-limit shallbeadequate toallow suppliers ofother Parties aswellasdomestic
suppliers toprepare andsubmit tenders before theclosing ofthetendering procedures. Indetermining
suchatime-limit, entities shall, consistent withtheirownreasonable needs, takeintoaccount factors
suchasthecomplexity oftheintended procurement, theextent ofsubcontracting anticipated andthe
normal timefortransmitting tenders bymailfromforeign aswellasdomestic points. Furthermore,
eachParty isrequired toensure thatitsentities shalltakedueaccount ofpublication delays when setting
thefinaldateforreceipt oftenders orofapplications tobeinvited totender.99
32. Paragraphs 2and3ofArticle XIoftheGPA ondeadlines specify theminimum periods that
mustbeprovided forthepreparation andsubmission oftenders bysuppliers aftertheissuance ofnotices
ofinvitation totender. Thedeadlines maybeshortened under certain circumstances specified inthat
Article.
33. TheWorldBankGuidelinesalsorequirethatthetimeallowedforthepreparationandsubmission
ofbidsshallbedetermined withdueconsideration oftheparticular circumstances oftheproject and
themagnitude andthecomplexity ofthecontract and,generally, nolessthansixweeks fromthedate
ofinvitation tobidorthedateofavailability ofbidding documents, whichever islater, shallbeallowed
forInternational Competitive Bidding.100Therelevant provisions require thatsufficient timeshould
beallowed toprospective bidders toprepare theirbidsaftertheyhavebeennotified oftheprocurement
opportunity. Aleadtimeofeightweeks isprescribed between thepublication ofaGeneral Procurement
Notice forprocurement onthebasisofInternational Competitive Bidding andtherelease ofthebidding
documents tothepublic. Thenotifications onopportunities tobidforspecific contracts, ortoprequalify,
intheformofSpecific Procurement notices, shallbepublished insufficient timetoenable prospective
bidders toobtain prequalification orbidding documents andprepare andsubmit theirresponses.101
34. TheGPA hasdetailed provisions aimed atallowing asufficient period oftimeforpotential
suppliers toprequalify. Tothisend,theGPAprovides thatanyconditions forparticipation intendering
procedures shallbepublished inadequate timetoenable interested suppliers toinitiate andcomplete
thequalification procedures102;thetimerequired forqualifying suppliers shallnotbeusedinorder
tokeepsuppliers ofother GPA Parties offasuppliers 'listorfrom being considered foraparticular
intended procurement103;entities maintaining permanent listsofqualified suppliers shallensure that
suppliers mayapply forqualification atanytime; andthatallqualified suppliers sorequesting are
98Model LawArticle 30(1)
99GPA Article XI,paragraph 1
100World Bank Guidelines ongoods andworks, paragraph 2.43
101World Bank Guidelines ongoods andservices, paragraph 2.7and2.8
102GPA Article VIII: (a)
103GPA Article VIII:(c)WT/WGTGP/W/3
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included inthelistswithin areasonably short time; if,afterpublication ofatender notice, asupplier
notyetqualified requests toparticipate, theentity shallpromptly startprocedures forqualification.104
VI. TRANSPARENCY OFDECISIONS ONQUALIFICATION
(a) Transparency ofcriteria
35. Allthree instruments contain provisions aimed atensuring thatdecisions onthequalification
ofsuppliers aretaken andseentobetaken onthebasisofcriteria thathavebeenpreviously disclosed,
arecapable ofobjective application andlinked totheabilities ofinterested suppliers toperform.105
36. TheModel Lawsetsforthcertain criteria thatprocuring entities mayrequire thesuppliers to
meetinorder toqualify forparticipation inprocurement proceedings.106TheGPA requires thatany
conditions forparticipation intendering procedures belimited tothose which areessential toensure
thefirm'scapability tofulfil thecontract inquestion. Entities shallrecognize asqualified suppliers
such domestic andforeign suppliers thatmeet theconditions forparticipation inanintended
procurement.107TheGPA alsoprescribes anumber ofprocedures inArticle VIIItoensure that
qualification process isfairanddoesnotleadtodiscrimination among suppliers. TheWorld Bank
Guidelines emphasize thatqualification ofsuppliers bebased entirely ontheircapability andresources
toperform theparticular contract satisfactorily andliststhefactors thatshould betaken intoaccount.108
37. Inorder toguarantee fairness ofandnon-discrimination inthequalification process, theModel
Lawrequires thatthesame criteria must beapplied toallsuppliers participating intheprocurement
proceedings; theprocuring entity shallevaluate thequalification ofsuppliers inaccordance withthe
qualification criteria setforth intheprequalification ortender documents and;inreaching adecision
withrespect tothequalification ofeachsupplier, theprocuring entity shallapply onlythecriteria set
forth insuchdocuments.109TheWorld Bank Guidelines require thatthescope ofthecontract and
aclearstatement oftherequirement forqualification besenttothose whohaveresponded toinvitation
toprequalify.110
(b) Notification andlisting
38. Thethreeinstruments havespecific requirements ontheprovision ofinformation ondecisions
toqualify tothesuppliers concerned andtothegeneral public. Under theModel Law, theprocuring
entity shallmake available toanymember ofthegeneral public, uponrequest, thenames ofallsuppliers
orcontractors thathavebeenprequalified.111Each supplier submitting anapplication toprequalify
104GPA Article VIII:(e)
105Model LawArticle 6;GPA Article VIIIandWorld Bank Guidelines ongoods andworks, paragraph 2.9
and2.10
106Model LawArticle 6(b)
107GPA Article VIII:(b) and(c)
108World Bank Guidelines ongoods andworks, paragraph 2.9
109Model LawArticle 6(3)
110World Bank Guidelines ongoods andworks, paragraph 2.10
111Model LawArticle 7(6)WT/WGTGP/W/3
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shallbenotified whether ornotithasbeenprequalified.112Under theModel LawandtheGPA, the
procuring entity shall, uponrequest, communicate tosuppliers whose application toqualify wasrejected
orwhose qualification hasbeenbrought toanendthegrounds therefor.113TheGPArequires theentity
concerned toadvise anysupplier having requested tobecome aqualified supplier ofitsdecision in
thisregard.114
39. Under theprocedures ofArticle XoftheGPA onselective tendering, entities maintaining
permanent listsofqualified suppliers arerequired topublish annually inoneofthepublications listed
inAppendix IIIanotice containing thefollowing115:
- theenumeration ofthelistsmaintained, including theirheadings, inrelation tothe
products orservices orcategories ofproducts orservices tobeprocured through the
lists;
- theperiod ofvalidity ofthelists, andtheformalities fortheirrenewal.
Entities arerequired tonotify thequalified suppliers included onpermanent listsofthetermination
ofanysuchlistsoroftheirremoval from them.116
VII. TRANSPARENCY OFDECISIONS ONCONTRACT AWARDS
(a) Transparency ofcriteria
40. Government procurement regimes andeachofthethree instruments referred tointhisnote
putgreat emphasis ondecisions ontheaward ofthecontracts notonlybeing objective butalsobeing
seentobeobjective. Thisconcern liesattheheartofthenexus linking transparency andaccountability.
Being seentobeobjective indecision-making requires, first, thattheevaluation criteria, including
technical specifications, beobjective innature andpublicly announced inadvance and,second, that
arrangements forthereceipt andopening oftenders aresuchastoensure theirregularity. Transparency
indecision-making further entails theavailability expostofinformation onthedecisions taken.
41. Asstated above under thesection ontender documents, allthreeinstruments provide thattender
documents should contain thecriteria, including anyfactor other thantheprice, tobeconsidered by
theprocuring entity indetermining thesuccessful tender andforawarding thecontract. Allthree
instruments alsoemphasize thatentities should evaluate tenders onlyonthebasis ofthecriteria that
havebeenpreviously published.
42. Theprovisions oftheModel Lawonexamination, evaluation andcomparison ofbidsrequire
theprocuring entity toevaluate andcompare thetenders inorder toascertain thesuccessful tender
inaccordance withtheprocedures andcriteria setforthinthetender documents andprohibit theuse
112Model LawArticle 7(6)
113Model LawArticle 7(7)andGPA Article XVIII:2(b)
114GPA Article VIII:1(f)
115GPA Article IX:9(a)-(c)
116GPA, Article VIII(f)WT/WGTGP/W/3
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ofanycriterion thathasnotbeensetforth inthetender documents.117Inevaluating andcomparing
tenders, aprocuring entity maygrant amargin ofpreference infavour ofadomestic supplier; but
anyrulesforcalculation ofsuchpreference margins should besetforthintheprocurement regulations
andshould becalculated accordingly. Moreover, theuseofamargin ofpreference istobepredisclosed
inthetender documents andreflected intherecord oftheprocurement proceeding.118
43. TheGPA alsoexplicitly provides thatawards should bemade inaccordance withthecriteria
andessential requirements specified inthetender documentation.119Unless inthepublic interest an
entity decides nottoissue thecontract, theentity shallmake theaward tothetenderer whohasbeen
determined tobefullycapable ofundertaking thecontract andwhose tender, whether fordomestic
products orservices, orproducts orservices ofother Parties, iseither thelowest tender orthetender
which interms ofthespecific evaluation criteria setforth inthenotices ortender documentation is
determined tobethemost advantageous.120
44. TheWorld Bank Guidelines require thatbidding documents shallspecify therelevant factors
inaddition tothepricetobeconsidered inbidevaluation andthemanner inwhich theywillbeapplied
forthepurposeofdeterminingthelowestevaluatedbid.121TheBorrowerisrequiredtoprepareadetailed
report ontheevaluation andcomparison ofbidssetting forth thespecific reasons onwhich the
recommendation fortheaward ofthecontract isbased.122Under theprovisions ondomestic preferences,
theBorrower maygrantamargin ofpreference intheevaluation ofbidsunder International Competitive
Bidding procedures; butinsuchcases, thebidding documents shallclearly indicate anypreferences
tobegranted andtheinformation required toestablish theeligibility ofabidforsuchpreference.123
45. Particular attention isgiven inthethreeinstruments toensuring thetransparency andobjectivity
oftechnical specifications criteria andtheirevaluation. TheGPA andtheModel Lawstipulate that
technical specifications124prescribed byprocuring entities shallnotbeprepared, adopted orapplied
withaviewto,orwiththeeffect of,creating unnecessary obstacles tointernational trade.125TheGPA
andtheWorld Bank Guidelines require thattechnical specifications prescribed byprocuring entities
shallbebased oninternational standards, where suchexist, otherwise, onnational technical regulations,
117Model LawArticle 34(4)(a)
118Model LawArticles 27(e), 34(4)(d) and39(2)
119GPA Article XIII:4(c)
120GPA Article XIII:4(b)
121World Bank Guidelines ongoods andworks, paragraph 2.51
122World Bank Guidelines ongoods andworks, paragraph 2.53
123World Bank Guidelines ongoods andworks, paragraph 2.54 andAppendix 2
124Such asquality, performance, safety anddimensions, symbols, terminology, packaging, marking and
labelling, ortheprocedures andmethods fortheirproduction andrequirements relating toconformity assessment
procedures prescribed byprocuring entities
125GPA Article VI:1; Model LawArticle 16(1)WT/WGTGP/W/3
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recognized national standards orother equivalent standards, orbuilding codes.126TheGPA hasan
explicit preference fortheuseofspecifications based onperformance rather thandesign ordescriptive
characteristics. TheModel Lawrequires thatanyspecifications, plans, drawings, designs and
requirements ordescriptions bebased ontherelevant objective technical andquality characteristics
ofthegoods.127Allthree instruments proscribe theuseofbrand names andother references pointing
to,forexample, apatent, specific origin, producer orsupplier.128Moreover, theGPArequires entities
nottoseekoraccept, inamanner which would havetheeffect ofprecluding competition, advice which
maybeusedinthepreparation ofspecifications foraspecific procurement fromafirmthatmayhave
acommercial interest intheprocurement.129
(b) Receipt andopening oftenders
46. TheGPAprovisions require thatprocedures andconditions forreceipt andopening oftenders
guarantee theregularity oftheopenings andbeconsistent withthenational treatment andnon-
discrimination provisions oftheGPA.130
47. TheModel LawandtheWorld Bank Guidelines setforthdetailed conditions which areaimed
atpreventing anynon-transparent action ordecision bytheprocuring entity intheprocess ofopening
oftenders andatenabling suppliers toobserve thattheentity complies withtheprocurement criteria
andprocedures. Tothisend,these twoinstruments provide, interalia,that:
- bidsshallbeopened atthetimeandplace stipulated inthenotice ofinvitation totender
orinthetender notice131;
- allsuppliers thathavesubmitted tenders ortheirrepresentatives shallbepermitted by
theprocuring entity tobepresent attheopening oftenders132;
- thetechnical proposals, submitted separately fromfinancial proposals, shallbeopened
immediately byacommittee ofofficials drawn fromtherelevant departments (technical,
finance, legal, asappropriate) aftertheclosing timeforthesubmission ofproposals133;
thefinancial proposals shallremain sealed andshallbedeposited withareputable public
auditor orindependent authority untiltheyareopened publicly134;
126World Bank Guidelines ongoods andworks, paragraph 2.19 and2.20
127Model LawArticle 16(2)
128GPAArticleVI:2-3;ModelLawArticle16(2);WorldBankGuidelinesongoodsandworks,paragraph2.19
and2.20
129GPA Article VI:4
130GPA Article XIII:3
131Model LawArticle 33(1); World Bank Guidelines ongoods andworks, paragraph 2.44
132Model Law33(2); World Bank Guidelines ongoods andworks, paragraph 2.44
133World Bank Guidelines onconsultants 'services, paragraph 2.12
134World Bank Guidelines onconsultants 'services, paragraph 2.12WT/WGTGP/W/3
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- thename andaddress ofeachsupplier whose tender isopened andthetender price
orthetotalamount ofeachbidshallbereadaloud tothose persons present atthe
opening oftenders, andcommunicated onrequest tosuppliers thathavesubmitted
tenders butthatarenotpresent orrepresented attheopening oftenders135;
- thename andaddress ofeachsupplier whose tender isopened andthetender price
orthetotalamount ofeachbidshallberecorded immediately intherecord ofthe
tendering proceedings.136
48. Thethree instruments setforth anumber ofother provisions thatsafeguard transparency at
thebidevaluation stage. Theprocuring entity mayaskbidders forclarifications oftheirtenders that
areneeded toevaluate them, butnochanges aretobeasked orpermitted withaview tomaking
unresponsive bidsresponsive except forthecorrection ofarithmetical errors appearing ontender.137
TheGPA requires thatanyopportunity thatmaybegiven totenderers tocorrect unintentional errors
offormbetween theopening oftenders andtheawarding ofthecontract shallnotbepermitted togive
risetoanydiscriminatory practice.138TheWorld Bank Guidelines preclude thealteration ofbidsafter
thedeadline forreceipt ofbids.139
49. Under theGPA, negotiations withentities mayonlytakeplace where prior notice hasbeen
given orwhere noonetender isobviously themostadvantageous interms ofthespecific evaluation
criteria setforth earlier inthenotices ortender documentation.140Tosafeguard transparency inthe
course ofnegotiations, entities shall ensure thatanyelimination ofparticipants iscarried outin
accordance withthecriteria setforth inthenotices andtender documentation; allmodifications to
thecriteria andtothetechnical requirements aretransmitted inwriting toallremaining participants
inthenegotiations; allremaining participants areafforded anopportunity tosubmit neworamended
submissions onthebasis oftherevised requirements; andwhen negotiations areconcluded, all
participants remaining inthenegotiations shallbepermitted tosubmit finaltenders inaccordance with
acommondeadline.141TheModelLawprohibitsnegotiationsbetweentheprocuringentityandasupplier
withrespect toatender submitted bythesupplier.142
50. TheWorld Bank Guidelines require thatinformation relating totheexamination, clarification,
andevaluation ofbidsandrecommendations concerning awards shallnotbedisclosed tobidders or
135Model LawArticle 33(3); World Bank Guidelines ongoods andworks, paragraph 2.44
136Model LawArticle 33(2); World Bank Guidelines ongoods andworks, paragraph 2.44
137Model LawArticle 34(1)
138GPA Article XIII:1(b)
139World Bank Guidelines ongoods andworks, paragraph 2.45
140GPA Article XIV:1
141GPA Article XIV:4(a)-(d)
142Model LawArticle 35WT/WGTGP/W/3
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other persons notofficially concerned withthebidding process untilthesuccessful bidder isnotified
oftheaward.143
51. Under theprocedures onnegotiations intheModel LawandintheGPA, entities arerequired
totreat information intenders, inparticular anytechnical, price orother market information,
confidentially andnottoprovide information intended toassist particular participants tobring their
tenders uptothelevelofother participants.144
52. Under theWorld Bank Guidelines onconsultancy services, information relating toevaluation
ofproposals andrecommendations concerning awards shallnotbedisclosed totheother consultants
thathavesubmitted theproposals ortoother persons untiltheaward ofthecontract isnotified tothe
successful firm.145
(c) Ex-post information oncontract awards
53. Thethree instruments laydown provisions requiring procuring entities toinform thepublic
and,inparticular,thesuppliersthathaveparticipatedintheprocurementprocessoftheirawarddecisions.
TheModel LawandtheGPA require entities topublish anotice award after theaward ofeach
contract.146Thepublications inwhich individual GPA Parties publish suchnotices areidentified in
Appendix IItotheGPA. TheGPA setsforth indetail thetypeofinformation thatsuchnotices, to
bepublished within aspecified time-limit after theaward ofeachcontract, must contain. Such
information shallrelate to147:
- thenature andquantity ofproducts orservices inthecontract award;
- thename andaddress oftheentity awarding thecontract;
- thedateofaward ofthecontract;
- thename andaddress ofwinning tenderer;
- thevalue ofthewinning award orthehighest andlowest offertaken intoaccount in
theaward ofthecontract;
- where appropriate, means ofidentifying thenotice ofinvitation totender orjustification
fortheuseoflimited tendering procedure; and
- thetypeofprocedure (open, selective orlimited) used.
143World Bank Guidelines ongoods andservices, paragraph 2.46
144Model LawArticle 49.3 andGPA Article XIV:3
145World Bank Guidelines onconsultants 'services, paragraph 2.28
146Model LawArticle 14(1) and(2);GPA Article XVIII:1
147GPA Article XVIII:1(a)-(g)WT/WGTGP/W/3
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54. Inaddition topublication ofanotice ofcontract award, theGPA goesontorequire entities
topromptly inform directly those suppliers thathaveparticipated inatender ofthedecision onthe
contract award, inwriting ifrequested.148Under theModel Law, theprocuring entity isrequired to
giveanotice toother suppliers afterithasentered intoacontract withasupplier, specifying thename
andaddress ofthesupplier andthecontract price.149
55. TheGPAconfers onunsuccessful tenderers therighttoobtain thenecessary information on
thecontract award. Accordingly, eachentity mustrespond promptly torequests forfurther information
fromasupplier ofaGPAParty regarding itsprocurement practices andprocedures. Inorder tofoster
transparency andaccountability ofthedecisions oftheprocuring entity, theModel LawandtheGPA
allow anunsuccessful tenderer toseekandobtain pertinent information concerning thereasons why
itstender wasnotselected. TheGPAalsorequires theprovision ofinformation onthecharacteristics
andrelative advantages ofthetender selected aswellasthename ofthewinning tenderer. Under
theModel Law, however, theprocuring entity isnotrequired tojustify thegrounds foritsrejection
oftenders.150
56. Asregards thetreatment ofconfidential information oncontract awards, theGPA foresees
thatentities maydecide towithhold certain information oncontract awards where release ofsuch
information mayimpede lawenforcement orotherwise becontrary tothepublic interest orwould
prejudice thelegitimate commercial interests ofparticular enterprises ormight prejudice faircompetition
between suppliers.151
57. Theprovisions oftheModel Lawbartheprocuring entity fromdisclosing certain information,
including thatrelating totheexamination, evaluation andcomparison oftenders soastosafeguard
thepublic interest orthecommercial interest ofparties involved intheproceedings.152
VIII. REVIEW
58. Review procedures areoften considered akeycomponent oftransparency andaccountability
ofgovernment procurement practices. TherulessetoutintheModel LawandtheGPAestablish the
basicfeatures thatnational review mechanisms musthavewithout going intogreatdetail. Thepurpose
ofthese provisions istogivesuppliers believing thatanentity hasbreached national lawor,inthe
caseoftheGPA, therules oftheGPA itself, arightofreview.153
59. Under theModel LawandtheGPA, asaninitial step,complainants areencouraged toseek
resolution oftheircomplaints through consultations withtheprocuring entity itself prior torecourse
148GPA Article XVIII:3
149Model LawArticle 36(6)
150Model LawArticle 12(1) andGPA Article XVIII:2
151GPA Article XVIII:4
152Model LawArticle 45andArticle 34(8)
153Model LawArticle 52;GPA Article XX:1WT/WGTGP/W/3
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toanadministrative review body.154Under theModel Law, unless thecomplaint isresolved bymutual
agreement, theprocuring entity shall, within prescribed time-limits issueawritten decision including
astatement onthereasons forthedecision andindicating anycorrective measures thataretobetaken.155
60. Ifthematter isnotsettled atthisstage, thecomplainant isentitled, under theModel Law, to
seekanadministrative review.156Thefunctions ofadministrative review maybevested inanexisting
appropriate administrative body orabody whose competence isexclusively toresolve disputes in
procurement matters andwhich isindependent oftheprocuring entity. Thedecisions ofthereview
bodies orfailure tomake adecision within prescribed time-limits shallbesubject tojudicial review.157
TheModel Lawalsolaysdown certain procedures toensure theopenness andfairness ofreview
procedures.158
61. Under theGPA, Parties mayconfer theauthority tohearchallenges bysuppliers onnational
courts oronanimpartial andindependent review body ofanadministrative nature. Intheevent that
abidchallenge isheard byareview body which doesnothavethestatus ofacourt oflaw,either its
decisions must besubject tojudicial review oritmust follow thecriteria laiddown indetail in
Article XX:6(a)-(g). These minimum standards aremainly designed toensure theopenness, fairness
andequity oftheproceedings.159
62. TheWorld BankGuidelines allow abidder oraconsultant whowishes toascertain thegrounds
onwhich itsbidorproposal wasnotselected, afternotification ofaward, toaddress arequest for
explanation totheBorrower country oragency. Ifthebidder orconsultant isnotsatisfied withthe
explanation given, itmayseekdebriefing withtheWorld Bank.160
63. Under theGPA, areview body must havetheauthority toorder thecorrection ofabreach
oftheAgreement orcompensation forthelossordamages suffered byasupplier, butthismaybe
limited tocosts fortender preparation orprotest. Pending theoutcome ofthechallenge, thereview
bodymustbeabletoorder rapidinterim measures, including thesuspension oftheprocurement process,
tocorrect breaches oftheGPA andtopreserve commercial opportunities.161However, procedures
mayprovide thatoverriding adverse consequences fortheinterests concerned, including thepublic
interest, maybetaken intoaccount indeciding whether suchmeasures should beapplied. Theprovisions
oftheModel Lawalsoprovide forsuspension ofprocurement proceedings which takeaccount ofthe
154GPA Article XX:1
155Model LawArticle 53
156Model LawArticles 54and55
157Model LawArticle 57
158Model LawArticle 55
159GPA Article XX:6(a)-(g)
160World Bank Guidelines ongoods andworks, Appendix 4,paragraph 15andonconsultants 'services,
Appendix 4,paragraph 15
161GPA Article XX:7(a)-(c)WT/WGTGP/W/3
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needoftheprocuring entity toconclude acontract inaneconomic andefficient waywithout undue
disruption anddelay intheprocurement process.162
IX. OTHER MATTERS RELATED TOTRANSPARENCY
(a) Maintenance ofrecord ofproceedings
64. TheModel Lawestablishes anexplicit requirement forthemaintenance ofarecord ofthekey
decisions andactions taken bytheprocuring entity during thecourse oftheprocurement proceedings.
Asisexplained intheGuide totheEnactment oftheModel Law, maintenance ofarecord isoneof
theprincipal mechanisms forensuring adherence totherules andalsofacilitates theexercise ofthe
rightofaggrieved suppliers toseekreview.163
65. Under theModel Law, therecord ofproceedings should contain, ataminimum, thefollowing
keyinformation regarding theprocurement ,theprocuring entity andsuppliers andevaluation of
tenders164:
- abrief description ofthegoods, construction orservices tobeprocured, orofthe
procurement needforwhich theprocuring entity requested proposals oroffers;
- thenames andaddresses ofsuppliers thatsubmitted tenders, proposals, offers or
quotations, andthename andaddress ofthesupplier orcontractor withwhom the
procurement contract isentered intoandthecontract price;
- information relative tothequalifications, orlackthereof, ofsuppliers thatsubmitted
tenders, proposals, offers orquotations;
- theprice, orthebasisfordetermining theprice, andasummary oftheother principal
terms andconditions ofeachtender, proposal, offerorquotation andoftheprocurement
contract, where these areknown totheprocuring entity;
- asummary oftheevaluation andcomparison oftenders, proposals, offers orquotations,
including theapplication ofanymargin ofpreference;
- anyinformation onrejection oftenders, proposals, offers orquotations under the
relevantprovisionsoftheModelLawincludingastatementtothateffectandthegrounds
therefor;
- astatement ofthegrounds andcircumstances onwhich theprocuring entity relied to
justify theselection ofthemethod ofprocurement used;
162Model LawArticle 56
163UNCITRAL Model LawonProcurement ofGoods, Construction andServices withGuide toEnactment,
pages 61and71
164Model LawArticle 11(a)-(m)WT/WGTGP/W/3
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- inprocurement proceedings inwhich theprocuring entity, limits participation onthe
basis ofnationality, astatement ofthegrounds andcircumstances relied upon bythe
procuring entity forimposing thelimitation;
- asummary ofanyrequests forclarification oftheprequalification orsolicitation
documents, theresponses thereto, aswellasasummary ofanymodification ofthose
documents.
66. TheGPA stipulates thatinformation ontheopening oftenders shallremain withtheentity
concerned atthedisposal ofthegovernment authorities responsible fortheentity inorder thatitmay
beusedifrequired under theprocedures relating totheprovision ofinformation byentities (GPA
Article XVIII), between governments (GPA Article XIX) andunder theprocedures forbidchallenge
(GPA Article XX)anddispute settlement (GPA Article XXII).165
67. Moreover, given themore restrictive nature oflimited tendering procedures under theGPA,
entities using thismethod inagiven procurement arerequired toprepare areport inwriting oneach
contract awarded using thelimited tendering method, rather thanopenandselective tendering. Each
report shallcontain thename oftheprocuring entity, value andkindofgoods orservices procured,
country oforigin, andastatement oftheconditions forusing limited tendering asstated inArticle XV:1
which prevailed. Thisreport shallremain withtheentities concerned atthedisposal ofthegovernment
authorities responsible fortheentity inorder thatitmaybeusedifrequired under theprocedures for
information andreview asregards obligation ofentities andParties (Articles XVIII andXIX) andon
bidchallenge anddispute settlement (Articles XXandXXII).
(b) Information technology
68. Information technology canplay, andinsome countries isalready playing, amajor rolein
enhancing transparency. With aview toensuring thattheprovisions oftheGPA donotconstitute
anunnecessary barrier totechnical progress, Article XXIV:8 oftheGPA foresees consultations, and
ifnecessary, negotiations ofmodifications totheAgreement inview ofdevelopments intheuseof
information technology ingovernment procurement. Theconsultations intheCommittee shall, in
particular, aimtoensure thattheuseofinformation technology promotes theaims ofopen, non-
discriminatory andefficient government procurement through transparent procedures, thatcontracts
covered under theAgreement areclearly identified andthatallavailable information relating toa
particular contract canbeidentified. Therelevant provision oftheGPA further states thatwhen a
Party intends toinnovate, itshallendeavour totakeintoaccount theviews expressed byother Parties
regarding anypotential problems. Inthecontext ofthethree-year review oftheAgreement under
Article XXIV:7(b), theCommittee onGovernment Procurement hasinitiated work onpossible
amendments totherelevant provisions oftheGPA toreflect therecent developments ininformation
technology.166
(c) Language
69. Under theModel Law, there isageneral requirement thatdocuments relating totendering
proceedings shallbeformulated intheofficial language orlanguages oftheenacting stateand,except
incertain specified cases, inalanguage customarily usedininternational trade. Anadditional rule
165GPA Article XIII:3
166GPA/8WT/WGTGP/W/3
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intheModel allows theformulation andsubmission oftenders inanylanguage inwhich thetender
documents havebeenissued orinanyother language thattheprocuring entity specifies inthetender
documents.167TheGPA requires thesubmission ofasummary oftheinvitation totender inoneof
theWTO official languages.168TheWorld Bank Guidelines require thatthequalification documents
beprepared ineither English, French orSpanish butallow entering intocontracts withlocalbidders
inthenational language oftheBorrower.169
X. INFORMATION TOBEPROVIDED TOOTHER GOVERNMENTS
70. TheGPA istheonlyinternational instrument ongovernment procurement thatconfers on
governmentsthatarePartiestoitcontractualrightsandobligations.Therefore,theproceduresdescribed
inthissection concern theexchange ofinformation between governments Parties totheGPAasrequired
under therelevant provisions oftheGPA.
(a) Information onnational legislation
71. TheGPAPartiesarerequiredtobepreparedtoexplaintheirgovernmentprocurementprocedures
inresponse toarequest byanyother GPA Party.170More particularly, theprovisions onspecial
treatment fordeveloping countries require developed country Parties toestablish, individually orjointly,
information centres torespond toreasonable requests fromdeveloping country Parties forinformation
relatingto,amongothers,laws,regulations,proceduresandpracticesregardinggovernmentprocurement,
notices about intended procurement which havebeenpublished, addresses oftheentities covered by
theAgreement, andthenature andvolume ofproducts orservices procured ortobeprocured, including
available information about future tenders. TheCommittee onGovernment Procurement established
under theAgreement mayalsosetupaninformation centre torespond toenquiries bydeveloping
countries.171
72. TheGPA hasageneral provision inArticle XIX:4, requiring thatconfidential information
provided toanygovernment Party totheGPAshallnotberevealed without formal authorization from
theParty providing theinformation. Thedefinition ofconfidential information isidentical tothatin
Article XofGATT 1994withtheaddition ofareference toinformation "which would prejudice fair
competition between suppliers".172
167Model LawArticles 17and29
168GPA Article IX:8
169World Bank Guidelines ongoods andworks, paragraph 2.15andonconsultants 'services, paragraph 1.21
and1.22
170GPA Article XIX:1
171GPA Article V:11
172GPA Article XIX:4WT/WGTGP/W/3
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(b) Notification ofnational legislation
73. Under theGPA each Party hasanobligation toinform theCommittee onGovernment
Procurement ofanychanges inthenational legislation anditsadministration.173TheCommittee has
adopted aDecision onprocedures forthenotification ofnational implementing legislation bytheGPA
Parties, including responses toachecklist ofissues.174
(c) Information oncontract awards
74. FurthertotheobligationsofentitiesunderArticleXVIII:2(c)oftheGPArelatingtotheprovision
ofinformation toanunsuccessful tenderer, theGPAallows thegovernment ofanunsuccessful tenderer
which isaParty totheGPA toseeksuchadditional information onthecontract award asmaybe
necessary toensure thattheprocurement wasmade fairly andimpartially. Tothisend,theprocuring
government isrequired toprovide information onboththecharacteristics andrelative advantages of
thewinning tender andthecontract price. Thegovernment maydisclose theinformation thusobtained
provideditexercisesthisrightwithdiscretion.Incaseswherereleaseofsuchinformationwouldprejudice
competition infuture tenders, thisinformation shallnotbedisclosed except afterconsultation with
andagreement oftheParty which gavetheinformation tothegovernment oftheunsuccessful tenderer.175
TheGPAalsoimposes ageneral requirement onParties toprovide, uponrequest, toanyother Party,
information concerning procurement bycovered entities andtheirindividual contract awards.176
(d) Statistical information
75. Asameans ofmonitoring procurement covered bytheGPA, Article XIX:5 oftheGPArequires
eachParty tocollect andprovide totheCommittee onanannual basis statistics onitsprocurements
covered bytheGPA. Thetypeofinformation thatsuchreports shallcontain isstipulated indetail
inArticle XIX:5, paragraphs (a)to(d).
173GPA Article XXIV:5(a) and(b)
174GPA/1/Add.1
175GPA Article XIX:2
176GPA Article XIX:3WT/WGTGP/W/3
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PART B
TRANSPARENCY PROVISIONS INWTO AGREEMENTS
I. INTRODUCTION
76. WTO Agreements contain extensive transparency provisions aimed atensuring theadequate
provision ofinformation onnational trade measures bothtoeconomic operators andtoother WTO
Members. These provisions would appear tobemotivated bythree main underlying concerns:
- first, thattraders andother affected economic operators should, asabasic principle,
onlybesubject tomeasures which havebeenpreviously published or,atleast, made
otherwise publicly available;
- second, theneedforadequate information ontrading opportunities provided under
theWTO tobeavailable inorder thateconomic operators cantakeadvantage ofthem;
and
- third, theneedforinformation onnational measures tobeavailable toWTO bodies
andother Members asabasisformonitoring theoperation ofWTO Agreements and,
inparticular, compliance withthem.
77. ThisPartfocuses onprovisions inWTO agreements, inparticular those inAnnex IoftheWTO,
relating totheavailability ofinformation onnational trade measures totraders andother economic
operators. Itthusdeals withsuchmatters asthepublication orpublic availability oflaws, regulations,
judicial decisions andadministrative rulings, advanced notice ofproposed regulations, theprovision
ofinformation inresponse torequests andthetreatment ofconfidential information. Another important
dimension oftransparency isthenotification ofinformation byMember governments tootherMembers
through theWTO. Rather thanduplicating theconsiderable work thathasbeendoneoncompiling
informationonthesenotificationrequirements,notablybytheWorkingGrouponNotificationObligations
andProcedures, theattention ofdelegations isdrawn todocuments G/NOP/W/2/Rev.1 and
G/L/112/Add.1 which listexisting notification obligations under agreements inAnnex 1AoftheWTO
Agreement.
II. PUBLICATION
(a) Publication
78. Article XofGATT 1994 isattheorigin oftheprovisions inother WTO Agreements which
setforth specific obligations requiring Members topublish laws, regulations, judicial decisions and
administrative rulings ofgeneral application effective inMembers andwhich relate totheoperation
oftherespective Agreements. Article X:1ofGATT 1994 reads:
"Article X
1. Laws, regulations, judicial decisions andadministrative rulings ofgeneral
application, made effective byanycontracting party pertaining totheclassificationWT/WGTGP/W/3
Page31
orthevaluation ofproducts forcustoms purposes, ortoratesofduty, taxes orother
charges, ortorequirements, restrictions orprohibitions onimports orexports oron
thetransfer ofpayments therefor, oraffecting theirsale,distribution, transportation,
insurance, warehousing inspection, exhibition, processing, mixing orother use,shall
bepublished promptly insuchamanner astoenable governments andtraders tobecome
acquainted withthem. Agreements affecting international trade policy which arein
force between thegovernment oragovernmental agency ofanycontracting party and
thegovernment orgovernmental agency ofanyother contracting party shallalsobe
published."
79. Transparency ispartofthegeneral obligations anddisciplines intheGeneral Agreement on
Trade inServices. Therequirement topublish, ormake otherwise publicly available, issetoutin
thefollowing terms:
"Article III
Transparency
1. EachMember shallpublish promptly and,except inemergency situations, at
thelatest bythetimeoftheir entry intoforce, allrelevant measures ofgeneral
application which pertain tooraffect theoperation ofthisAgreement. International
agreements pertaining tooraffecting tradeinservices towhich aMember isasignatory
shallalsobepublished.
2. Where publication asreferred toinparagraph 1isnotpracticable, such
information shallbemade otherwise publicly available."
80. TheAgreement onTrade-Related Aspects ofIntellectual Property Rights establishes the
requirement topublish, ormake publicly available, therelevant legislation aspartoftheprocedures
ondispute prevention orsettlement.
"Article 63
Transparency
1. Laws andregulations, andfinaljudicial decisions andadministrative rulings
ofgeneral application, made effective byaMember pertaining tothesubject matter
ofthisAgreement (theavailability, scope, acquisition, enforcement andprevention
oftheabuse ofintellectual property rights) shallbepublished, orwhere suchpublication
isnotpracticable made publicly available, inanational language, insuchamanner
astoenable governments andright holders tobecome acquainted with them.
Agreements concerning thesubject matter ofthisAgreement which areinforcebetween
thegovernment oragovernmental agency ofaMember andthegovernment ora
governmental agency ofanother Member shallalsobepublished."
81. Itmaybenoted thatintheWTO Agreements citedabove, theobligation topublish extends
tointernational agreements inforce between Members affecting thesubject matter oftherespective
Agreements.WT/WGTGP/W/3
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82. TheAgreement onImplementation ofArticle VIIofGATT 1994stipulatespublicationofdomestic
legislation byreference toArticle X:1ofGATT 1994. Therelevant provision reads:
"Article 12
Laws, regulations, judicial decisions andadministrative rulings ofgeneral
application giving effect tothisAgreement shall bepublished inconformity with
Article XofGATT 1994 bythecountry ofimportation concerned."
83. Therequirement onpublication intheAgreement onPreshipment Inspection issetforth as
partofthegeneral transparency obligations imposed onuserMembers. These provisions read:
"Article 2
Obligations ofUserMembers
Transparency
8. UserMembersshallpublishpromptlyallapplicablelawsandregulationsrelating
topreshipment inspection activities insuchamanner astoenable other governments
andtraders tobecome acquainted withthem."
84. Thedisciplines governing theapplication ofrulesoforigin during thetransition period under
theAgreement onRules ofOrigin require Members tocomply withtherequirements onpublication
setforth inArticle X:1ofGATT 1994. Therelevant provisions read:
"Article 2
Disciplines During theTransition Period
Until thework programme fortheharmonization ofrulesoforigin setoutin
PartIViscompleted, Members shallensure that:
(g) theirlaws, regulations, judicial decisions andadministrative
rulings ofgeneral application relating torules oforigin are
published asiftheyweresubject to,andinaccordance with,
theprovisions ofparagraph 1ofArticle XofGATT 1994."
85. Under theAgreement onImport Licensing Procedures theobligation imposed onMembers
topublish concerns, inparticular, thespecific procedures governing theapplication oflicensing
requirements andthelistsofproducts subject tolicensing requirement. Therelevant provision reads:
"Article 1
General Provisions
4. (a) Therulesandallinformation concerning procedures forthesubmission
ofapplications, including theeligibility ofpersons, firms andinstitutions tomake such
applications, theadministrative body(ies) tobeapproached, andthelistsofproducts
subject tothelicensing requirement shallbepublished, inthesources notified totheWT/WGTGP/W/3
Page33
Committee onImport Licensing provided forinArticle 4(referred tointhisAgreement
as"theCommittee"), insuchamanner astoenable governments andtraders tobecome
acquainted withthem."
86. Therelevant obligations ofcentral government bodies intheAgreement onTechnical Barriers
toTrade withrespect topublication orpublic availability ofallregulations andprocedures read:
"Article 2
Preparation, Adoption andApplication ofTechnical Regulations byCentral Government Bodies
2.11 Members shallensure thatalltechnical regulations which havebeenadopted
arepublished promptly orotherwise made available insuchamanner astoenable
interested parties inother Members tobecome acquainted withthem."
"Article 5
Procedures forAssessment ofConformity byCentral Government Bodies
5.8 Members shallensure thatallconformity assessment procedures which have
beenadopted arepublished promptly orotherwise made available insuchamanner
astoenable interested parties inother Members tobecome acquainted withthem."
Moreover, theCode ofGood Practice forthePreparation, Adoption andApplication ofStandards under
theAgreement onTechnical Barriers toTrade contains thefollowing provision requiring standardizing
bodies topublish thestandards adopted bythem:
"O. Once thestandard hasbeenadopted, itshallbepromptly published."
87. Annex BoftheAgreement ontheApplication ofSanitary andPhytosanitary Measures stipulates
thepublication ofregulations (sanitary andphytosanitary measures suchaslaws, decrees orordinances
which areapplicable generally) inthefollowing terms:
"Publication ofregulations
1. Members shallensure thatallsanitary andphytosanitary regulations which
havebeenadopted arepublished promptly insuchamanner astoenable interested
Members tobecome acquainted withthem."
88. TheAgreement onImplementation ofArticle VIoftheGeneral Agreement onTariffs and
Trade 1994 requires Members togivepublic notice oftheinitiation ofaninvestigation, ofany
preliminary orfinaldetermination, ofanydecision toaccept anundertaking pursuant toArticle 8,
ofthetermination ofsuchanundertaking, andofthetermination ofadefinitive anti-dumping duty.
Thedetails ofinformation thatsuchnotices should contain, orotherwise make available through a
separate report, arealsosetforth intherelevant provisions. Therequirements onpublic notice also
apply totheinitiation andcompletion ofreviews ofanti-dumping duties andprice undertakings and
todecisions toapply duties retroactively.177
177Article 12WT/WGTGP/W/3
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89. TheAgreement onSubsidies andCountervailing Measures requires Members togivepublic
noticeoftheinitiationofaninvestigationofanallegedsubsidy,ofanypreliminaryorfinaldetermination,
ofanydecision toaccept anundertaking pursuant toArticle 18,ofthetermination ofsuch an
undertaking, andofthetermination ofadefinitive countervailing duty. Thedetails ofinformation
thatsuchnotices should setforth, orotherwise make available through aseparate report, areenumerated
under therelevant provisions. Therequirements onpublic notice alsoapply totheinitiation and
completion ofreviews ofcountervailing duties andtodecisions toapply countervailing duties
retroactively.178
(b) Timing ofpublication
90. Article X:2ofGATT 1994requires thatnational legislation shallbepublished promptly. The
General Agreement onTrade inServices requires thatmeasures bepublished promptly and,except
inemergency situations, atthelatest bythetimeoftheirentry intoforce.
91. TheAgreement onImport Licensing setsforthanobligation topublish licensing requirements
andanyamendments inadvance oftheirentry intoforce andsetsoutspecific time-limits. Therelevant
provision reads:
"Article 4(a)
...Suchpublication shalltakeplace, whenever practicable, 21dayspriortotheeffective
dateoftherequirement butinallevents notlaterthansucheffective date. Any
exception, derogations orchanges inorfromtherulesconcerning licensing procedures
orthelistofproducts subject toimport licensing shallalsobepublished inthesame
manner andwithin thesame timeperiods asspecified above."
92. Theprovisions ontransparency intheAgreement onPreshipment Inspection alsoemphasize
theimportance ofinforming exporters ofanyadditional procedural requirements orchanges inexisting
procedures. They require thatsuchmodifications shallnotbeapplied toashipment unless theexporter
isinformed ofthese changes atthetimetheinspection dateisarranged. Anexception clause applies
inemergency situations ofthetypeaddressed byArticles XXandXXIofGATT 1994 allowing the
application ofsuchadditional requirements orchanges toashipment before theexporter hasbeen
informed.179
93. Under theAgreement onTechnical Barriers toTrade180andtheAgreement ontheApplication
ofSanitary andPhytosanitary Measures181,Members arerequired toallow areasonable timebetween
thepublication ofameasure anditsentry intoforce toallow forproducers inexporting Members,
andparticularly indeveloping country Members, toadapt theirproducts ormethods ofproduction
totherequirementsoftheimportingMember.However,exceptionsareallowedforurgentcircumstances
referred tointherespective Agreements.
178Article 22
179Article 2:6
180Article 2.12 andArticle 5.9
181Annex B,paragraph 2WT/WGTGP/W/3
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III. PUBLIC NOTICE OFPROPOSED REGULATIONS
94. Asanintegral partoftheprocedures forthenotification ofproposed regulations andprocedures,
theAgreement onTechnical Barriers toTrade182andtheAgreement onSanitary andPhytosanitary
Measures183require Members togiveadvance public notice ofproposed regulations orprocedures.
Under theseprovisions, Members arerequired topublish anotice inapublication atanearlyappropriate
stage insuchamanner astoenable interested parties inother Members tobecome acquainted with
theproposal tointroduce aparticular regulation. However, incaseofurgent problems ofsafety, health,
environmental protection ornational security, Members areallowed toproceed withtheadoption of
regulations andprocedures without giving advance public notice.
IV. PROVISIONOFINFORMATIONINRESPONSETOREQUESTSFROMOTHERMEMBERS
95. Certain WTO agreements contain obligations onMembers toprovide information bilaterally
toanother Member inresponse toaspecific request.
96. Under theGeneral Agreement onTrade inServices ,therelevant provision included inArticle III
ontransparency reads:
"4. Each Member shallrespond promptly toallrequests byanyother Member
forspecific information onanyofitsmeasures ofgeneral application orinternational
agreements within themeaning ofparagraph 1."
97. Theobligation ontheestablishment ofenquiry point(s) under thetransparency provisions in
Article IIIoftheGeneral Agreement onTrade inServices reads:
"4. ...Each Member shallalsoestablish oneormore enquiry points toprovide
specific information toother Members, upon request, onallsuchmatters aswellas
those subject tothenotification requirement inparagraph 3.Suchenquiry points shall
beestablished within twoyears from thedateofentry intoforce oftheAgreement
Establishing theWTO (referred tointhisAgreement asthe"WTO Agreement").
Appropriate flexibility withrespect tothetime-limit within which suchenquiry points
aretobeestablished maybeagreed uponforindividual developing country Members.
Enquiry points neednotbedepositories oflawsandregulations."
98. Under theAgreement onTrade-Related Aspects ofIntellectual Property Rights ,Members shall
respond torequests forinformation fromanother Member concerning domestic legislation aswellas
onanyspecific judicial decisions oradministrative rulings orbilateral agreements intheareaof
intellectual property. Therelevant provision under theArticle ontransparency reads:
"Article 63
Transparency
3. Each Member shallbeprepared tosupply, inresponse toawritten request
fromanother Member, information ofthesortreferred toinparagraph 1.AMember,
182Articles 2.9.1 and5.6.1
183Annex B,paragraph 5(a)WT/WGTGP/W/3
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having reason tobelieve thataspecific judicial decision oradministrative ruling or
bilateral agreement intheareaofintellectual property rights affects itsrights under
thisAgreement, mayalsorequest inwriting tobegiven access toorbeinformed in
sufficient detail ofsuchspecific judicial decisions oradministrative rulings orbilateral
agreements."
99. Theobligation intheAgreement onTrade-Related Investment Measures torespond torequests
forinformation isstated inthefollowing terms:
"Article 6
Transparency
3. EachMembershallaccordsympatheticconsiderationtorequestsforinformation,
andafford adequate opportunity forconsultation, onanymatter arising from this
Agreement raised byanother Member."
100. Under theAgreement onTechnical Barriers toTrade ,Members mustsetupanational enquiry
pointtoprovideinformationonanytrade-relatedtechnicalregulations,standards,conformityassessment
procedures within theMember 'sterritory whether proposed oradopted, aswellasontheMember 's
participation inbilateral orplurilateral standards-related agreements, regional standardizing bodies and
conformity assessment systems. Theestablishment ofenquiry points toprovide information onthe
standardization activities ofnon-governmental organizations issubject toabest-endeavours
obligation.184,185,186
101. Annex BoftheAgreement ontheApplication ofSanitary andPhytosanitary Measures setting
forth transparency requirements gives details onthetypeofinformation which maybeobtained by
interested Members from enquiry points established under thatAgreement.187,188
184Article 10.1, 10.2 and10.3
185Document G/TBT/ENQ/-, which isregularly updated, contains thelistofnames andaddresses ofenquiry
points andanyadditional information provided byMembers concerning their operation.
186Subsequent totheDecisions adopted byMinisters on15April 1994 relating totheAgreement onTechnical
Barriers toTrade, aWTO Standards Information Service operated byISOwasestablished toprovide information
ontheactivitiesofthestandardizingbodieswhichhavesubscribedtotheCodeofGoodPracticeforthePreparation,
Adoption andApplication ofStandards inAnnex 3totheAgreement (G/L/1).
187Annex B,paragraph 3
188Document G/SPS/ENQ/-, which isregularly updated, contains thelistofnames andaddresses ofenquiry
points andanyadditional information provided byMembers concerning their operation.WT/WGTGP/W/3
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V. PROVISION OFINFORMATION INRESPONSE TOREQUESTS FROM ECONOMIC
OPERATORS
102. TheAgreement ontheImplementation ofArticle VIIoftheGATT 1994 provides asfollows:
"Article 16
Upon written request, theimporter shallhavetherighttoanexplanation in
writing from thecustoms administration ofthecountry ofimportation astohowthe
customs value oftheimporter ’sgoods wasdetermined."
103. TheAgreementonPreshipmentInspectionincludesspecificprovisionswhichrequiretheentities
inuserMembers toprovide information inresponse torequests byexporters. Inthisrespect the
Agreement reads:
"Article 2
Obligations ofUserMembers
Transparency
6. User Members shall ensure that, when initially contacted byexporters,
preshipment inspection entities provide totheexporters alistofalltheinformation
which isnecessary fortheexporters tocomply withinspection requirements. The
preshipment inspection entities shallprovide theactual information when sorequested
byexporters. Thisinformation shallinclude areference tothelawsandregulations
ofuserMembers relating topreshipment inspection activities, andshallalsoinclude
theprocedures andcriteria usedforinspection andforpriceandcurrency exchange-rate
verification purposes, theexporters 'rights vis-à-vis theinspection entities, andthe
appeals procedures setupunder paragraph 21."
104. TheprovisionsontransparencytobeprovidedbyuserMembersintheAgreementonPreshipment
Inspection requires thepreshipment inspection offices maintained bypreshipment inspection entities
toserve asinformation points:
"Article 2
Obligations ofUserMembers
Transparency
7. UserMembers shallensure thattheinformation referred toinparagraph 6is
made available toexporters inaconvenient manner, andthatthepreshipment inspection
offices maintained bypreshipment inspection entities serve asinformation points where
thisinformation isavailable."WT/WGTGP/W/3
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105. Enquiry points established under Article 10oftheAgreement onTechnical Barriers toTrade
istoanswer allreasonable enquiries notonlyfromother Members butalsointerested parties inother
Members.
106. Theprovisions onincreasing participation ofdeveloping countries inArticle IVoftheGeneral
Agreement onTrade inServices alsorequire developed country Members toestablish contact points
tofacilitate theaccess ofdeveloping Members 'service suppliers toinformation. Thetypeofinformation
thatsuchcontact points should provide isalsosetforth. Therelevant provision reads:
"Article IV
2. Developed country Members, andtotheextent possible other Members, shall
establish contact points within twoyears fromthedateofentry intoforce oftheWTO
Agreement tofacilitate theaccess ofdeveloping country Members 'service suppliers
toinformation, related totheirrespective markets, concerning:
(a) commercial andtechnical aspects ofthesupply ofservices;
(b) registration, recognition andobtaining ofprofessional qualifications; and
(c) theavailability ofservices technology."
VI. TREATMENT OFCONFIDENTIAL INFORMATION
107. Itshould benoted thatmany WTO Agreements contain provisions allowing confidential
informationtobewithheld,notwithstandingthenormaltransparencyobligation.Confidentialinformation
isgenerally defined asinformation which would impede lawenforcement orotherwise becontrary
tothepublic interest orwould prejudice thelegitimate commercial interests ofparticular enterprises,
public orprivate. Inthisrespect, Article X:1ofGATT 1994 reads:
"...Theprovisions ofthisparagraph shallnotrequire anycontracting party
todisclose confidential information which would impede lawenforcement orotherwise
becontrary tothepublic interest orwould prejudice thelegitimate commercial interests
ofparticular enterprises, public orprivate."
108. Furthermore, theArticle ofGATT 1994onsecurity exceptions inArticle XXIhasprovisions
onthetreatment ofconfidential information which read:
"Article XXI
Security Exceptions
Nothing inthisAgreement shallbeconstrued
(a) torequire anycontracting party tofurnish anyinformation the
disclosure ofwhich itconsiders contrary toitsessential security
interests."WT/WGTGP/W/3
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109. Article IIIbisoftheGeneral Agreement onTrade inServices reads:
"Article IIIbis
Disclosure ofConfidential Information
Nothing inthisAgreement shallrequire anyMember toprovide confidential
information, thedisclosure ofwhich would impede lawenforcement, orotherwise be
contrary tothepublic interest, orwhich would prejudice legitimate commercial interests
ofparticular enterprises, public orprivate."
110. Thelanguage intheAgreement onTrade-Related Intellectual Property Rights ,paragraph 4
ofArticle 63,allowing confidential information tobewithheld issimilar tothatinArticle X:1of
GATT 1994.
111. Article 6oftheAgreement onTrade-Related Investment Measures ontransparency alsomakes
adirect reference totherelevant provision inArticle X:1ofGATT 1994 andallows Members not
todisclose confidential information.
112. TheAgreement onTechnical Barriers toTrade allows thewithholding ofinformation related
toessential security interests. Therelevant provision reads:
"10.8 Nothing inthisAgreement shallbeconstrued asrequiring:
10.8.3 Members tofurnish anyinformation, thedisclosure ofwhich they
consider contrary totheiressential security interests."
113. Theprovisions ontheprotection ofconfidential information arepartoftheGeneral Reservations
under theAgreement ontheApplication ofSanitary andPhytosanitary Measures. They read:
General Reservations
11. Nothing inthisAgreement shallbeconstrued asrequiring:
(b) Members todisclose confidential information which would impede
enforcement ofsanitary orphytosanitary legislation orwhich would
prejudice thelegitimate commercial interests ofparticular enterprises.
114. Itmight benoted that,while theabove provisions ofWTO Agreements allow Members to
exempt confidential information from transparency obligations, certain other provisions ofWTO
Agreements mandate theprotection ofsuchinformation. These include Article 10oftheAgreement
onImplementation ofArticle VIIoftheGATT 1994, Article 12oftheAgreement onPreshipment
Inspection andArticle 39oftheAgreement onTrade-Related Aspects ofIntellectual Property Rights.