The Caribbean Development Bank (CDB, the Bank) and the International Fund for Agricultural Development (IFAD) have signed a landmark Agreement to enhance the effectiveness of project procurement processes. This Agreement, which applies to joint co-financed projects, is designed to simplify procurement procedures, reduce transaction costs, and improve project planning and execution across the Caribbean.

The Procurement Framework Agreement builds on the longstanding partnership between CDB and IFAD. It establishes a collaborative structure where both institutions will mutually rely on each other’s procurement policies in jointly funded projects. This innovative approach addresses the complexities arising from varying procurement frameworks of international institutions, which often result in inefficiencies during project implementation. By recognising that the two organisations share core procurement principles of economy, efficiency, transparency, fairness, and accountability, the Agreement allows for mutual reliance on their respective project procurement frameworks and establishes effective mechanisms for cooperation. This is expected to greatly facilitate a better division of labour between the two partners, along with more consistent and timely project procurement implementation.

Speaking at the ceremonial signing, Therese Turner-Jones, CDB’s Acting Vice President, Operations, remarked, “This agreement is an important step in enhancing the efficiency and effectiveness of how we implement co-financed projects. By enabling the adoption of streamlined procurement arrangements in joint co-financed projects, we are reducing the burden on beneficiaries, enabling faster project execution, and ultimately delivering better development outcomes for the Caribbean region.”

Donal Brown, Associate Vice-President of IFAD’s Programme Management Department, stated, “The mutual reliance established by this agreement is a testament to the strong partnership between IFAD and CDB. Our collaboration will not only streamline processes but also ensure that agricultural and rural development projects in the Caribbean are implemented with the highest standards of efficiency and accountability.”

The new Procurement Framework Agreement will significantly promote future collaboration between the two institutions and enhance their ability to co-finance development projects in the agriculture and rural development sectors. This partnership is poised to bring about greater coherence, development impact, and improved service delivery across the Caribbean. Caribbean.