Contracting with the Government

The topic explores the process, time and cost of awarding a public contract for road resurfacing to a domestically-owned medium-sized limited liability company. The indicator benchmarks the entire procurement process and examines the 5 main phases in the life of a government project to be implemented by a private company: (1) budgeting and needs assessment; (2) advertisement and bid submission; (3) bid opening, evaluation and contract signing; (4) contract management; and (5) payment. The indicator further benchmarks the legal framework regulating public procurement in a given economy.

Contracting with the Government data

DB2020 data and notes (Excel)

  • Economy Procuring Entity
    Afghanistan Ministry of Public Works
    Albania Albanian Road Authority
    Algeria Direction des Travaux Publics de la Wilaya d'Alger du Ministère des Travaux Publics et des Transports
    Angola Instituto de Estradas de Angola
    Antigua and Barbuda Ministry of Works
    Argentina Dirección de Vialidad de la Provincia de Buenos Aires
    Armenia Transport Project Implementation Organization
    Australia Roads and Maritime Services Agency
    Austria Department of Road Construction and Administration of the Provincial Government of Lower Austria
    Azerbaijan State Agency for Automobile and Road Transport
    Bahamas, The Ministry of Public Works.
    Bahrain Ministry of Works, Municipalities Affairs and Urban Planning
    Bangladesh Chittagong Roads and Highways Department of The Road Transport and Highways Division within the Ministry of Road Transport and Bridge
    Bangladesh Dhaka Roads and Highways Department of The Road Transport and Highways Division within the Ministry of Road Transport and Bridge
    Barbados Ministry of Transport, Works and Maintenance
    Belarus Republican Unitary Enterprise within the Ministry of Transport and Communications of the Republic of Belarus
    Belgium Brussel Mobiliteit / Bruxelles Mobilité
    Belize Ministry of Works (MOW)
    Benin Ministry of Public Works and Transport
    Bhutan Department of Roads (DoR)
    Bolivia Administradora Boliviana de Carreteras
    Bosnia and Herzegovina Public Enterprise of the Road of the Federation of Bosnia and Herzegovina (JP Ceste F BIH)
    Botswana Ministry of Transport - Department of Roads
    Brazil Rio de Janeiro Department of Roads of the State of Rio de Janeiro
    Brazil São Paulo Department of Roads of the State of São Paulo
    Brunei Darussalam Department of Roads within the Ministry of Development.
    Bulgaria Road Infrastructure Agency
    Burkina Faso Direction Générale des Routes du Ministère des Infrastructures du Désenclavement et des Transports
    Burundi Office des Routes (ODR)
    Cabo Verde Instituto de Estradas de Cabo Verde
    Cambodia Ministry of Public Works and Transport
    Cameroon Ministry of Public Works
    Canada Province of Ontario, Department of Transportation
    Central African Republic The Ministry of Public Works and Road Maintenance.
    Chad Ministere des Infrastructure, des Transnports et du Desenclavement
    Chile Dirección de Vialidad del Ministerio de Obras Públicas
    China Beijing Beijing Municipal Transportation Commission Road Bureau
    China Shanghai Shanghai Road Administration Bureau
    Colombia Instituto Nacional de Vías
    Comoros Ministry of Transport
    Congo, Dem. Rep. Office des Routes
    Congo, Rep. Ministère de lAménagement de lÉquipement du Territoire des Grands Travaux
    Costa Rica Consejo Nacional de Vialidad (CONAVI)
    Côte d'Ivoire Agence de Gestion des Routes du Ministère des Infrastructures Économiques
    Croatia Hrvatske Ceste D.O.O.
    Cyprus Department of Public Works
    Czech Republic Road and Motorway Directorate of the Czech Republic
    Denmark Municipal Council of Copenhagen
    Djibouti Ministère de l'Equipement et des Transports-Djibouti
    Dominica Ministry of Public Works, Water Resource Management and Ports
    Dominican Republic Ministry of Public Works and Communications
    Ecuador Ministerio de Transporte y Obras Públicas de Ecuador
    Egypt, Arab Rep. General Authority for Roads, Bridges and Land Transport
    El Salvador Fondo de Conservación Vial
    Equatorial Guinea Ministry of Public Works, Housing and Urban Planning
    Eritrea Ministry of Public Works and Construction
    Estonia Estonian Road Administration (ERA)
    Eswatini Ministry of Public Works and Transport
    Ethiopia Ethiopian Roads Authority
    Fiji Fiji Roads Authority
    Finland Finnish Transport Infrastructure Agency (Väylä) through the Center for Economic Development Transport and the Environment (ELY-Center) of Uusimaa
    France Direction Régionale et Interdépartementale de l'Équipement et de l'Aménagement du Ministère de la Transition Écologique et Solitaire
    Gabon l'Agence Nationale des Grands Travaux d'Infrastructures (ANGTI)
    Gambia, The National Roads Authority
    Georgia State Procurement Division within the Department of Georgian Roads
    Germany Land Brandenburg represented by the Landesbetrieb Strassenwesen Brandenburg
    Ghana Ghana Highway Authority within the Ministry of Roads and Highways
    Greece Hellenic Ministry of Infrastructure, Transport and Networks
    Grenada Project Implementation and Management Unit (PIMU) at the Ministry of Infrastructure Development, Public Utilities, Energy, Transport and Implementation.
    Guatemala General Directorate of Roads within the Ministry of Communications, Infrastructure and Housing
    Guinea Ministry of Public Works in collaboration with the National Directorate of Public Procurement (DNMP)
    Guinea-Bissau Ministry of Public Works, Construction and Urbanism - General Directorate for Roadways and Bridges
    Guyana Ministry of Public Infrastructure
    Haiti Ministere des Travaux Publics Transport et Communications (MTPTC)
    Honduras Secretaría de Infraestructura y Servicios Públicos (INSEPH)
    Hong Kong SAR, China Highways Department (HyD) of Hong Kong Special Administrative Region (HKSARG)
    Hungary Magyar Közút Nonprofit Zrt.
    Iceland Icelandic Road and Coastal Administration
    India Delhi Public Works Department of the National Capital Territory of Delhi
    India Mumbai Public Works Department of the Government of Maharashtra, Mumbai Region
    Indonesia Jakarta Direktorat Jenderal Bina Marga within the Ministry of Works and Housing
    Indonesia Surabaya Dinas Pekerjaan Umum Bina marga within the East Java Province
    Iran, Islamic Rep. Ministry of Roads & Urban Development
    Iraq State Commission for Roads and Bridges within the Ministry of Construction and Housing.
    Ireland Transport Infrastructure Ireland
    Israel National Transport Infrastructure Company Ltd. of the Road Projects Department of Netivei Israel
    Italy Astral S.P.A.
    Jamaica National Works Agency
    Japan Osaka Kinki Regional Development Bureau within the Ministry of Land, Infrastructure, Transport and Tourism
    Japan Tokyo Kanto Regional Development Bureau within the Ministry of Land, Infrastructure, Transport and Tourism
    Jordan Government Tenders Directorate within the Ministry of Public Works and Housing
    Kazakhstan NC Kazautozhol Jsc.
    Kenya Kenya National Highways Authority
    Kiribati Ministry of Public Works and Utilities
    Korea, Rep. Public Procurement Service
    Kosovo Ministry of Infrastructure and Transport
    Kuwait Public Authority of Road and Transportation in association with the Ministry of Public Works and the Central Agency of Public Tenders
    Kyrgyz Republic Department of Roads within the Ministry of Transport and Ways
    Lao PDR Ministry of Public Works and Transportation (MPWT)
    Latvia State Joint Stock Company, Latvian State Roads ("Latvijas Valsts Cei")
    Lebanon Directorate General of Roads and Buildings within the Ministry of Public Works and Transport
    Lesotho Ministry of Public Works and Transport, Roads Directorate
    Liberia Ministry of Public Works
    Libya Roads and Bridges Authority
    Liechtenstein Office for Construction and Infrastructure
    Lithuania The Lithuanian Road Administration within the Ministry of Transport and Communications
    Luxembourg Administration des Ponts et Chaussées
    Madagascar Autorité Routière de Madagascar
    Malawi Malawi Roads Authority
    Malaysia Malaysian Public Works Department
    Maldives Ministry of National Planning and Infrastructure
    Mali Agence d'Exécution Chargée de l'Entretien du Ministère de l'Équipement, des Transports et du d'Ésenclavement
    Malta Department of Contracts
    Marshall Islands Public Management Unit of the Ministry of Public Works
    Mauritania Direction Générale des Infrastructures de Transport within the Ministry of Equipment and Transport
    Mauritius The Road Development Authority
    Mexico Mexico City Dirección General de Carreteras de La Secretaría de Comunicación y de Transportes
    Mexico Monterrey Secretaría de Infraestructura, Gobierno de Nuevo León
    Micronesia, Fed. Sts. Project Management Office of the Office of Transportation and Infrastructure of the Government of Pohnpei
    Moldova State Administration of Roads
    Mongolia Ministry of Road and Transport Development
    Montenegro Transport Directorate within the Ministry of Transport and Maritime Affairs of Montenegro
    Morocco Direction des Routes du Ministère de l'Équipement, du Transport, de la Logistique et de l'Eau
    Mozambique Administração Nacional de Estradas
    Myanmar Ministry of Construction of the Republic of the Union of Myanmar
    Namibia Roads Authority
    Nepal Department of Road, Road Division Office, Kathmandu
    Netherlands Province of North Holland
    New Zealand New Zealand Transport Agency
    Nicaragua Fondo de Mantenimiento Vial (FOMAV)
    Niger Ministère de lEquipement
    Nigeria Kano Kano State Ministry of Works, Housing & Transport
    Nigeria Lagos Lagos State  Ministry of Works and Infrastructure
    North Macedonia Public Enterprise for State Roads
    Norway Norwegian Public Roads Administration
    Oman Directorate General of Roads of the Ministry of Transport & Communication
    Pakistan Karachi Works & Services Department within the Government of Sindh
    Pakistan Lahore Communication and Works Department, Government of the Punjab
    Palau Bureau of Public Works
    Panama Ministerio de Obras Públicas
    Papua New Guinea Department of Works
    Paraguay Dirección de Vialidad del Ministerio de Obras Públicas y Comunicaciones
    Peru Provías
    Philippines Department of Public Works and Highways
    Poland Mazowiecki Voivodship Roads Authority
    Portugal Infraestruturas de Portugal, S.A.
    Puerto Rico Department of Transportation and Public Works
    Qatar Ashghal
    Romania Contracting Authority of the Ilfov County Council
    Russian Federation Moscow Federal Highway Administration Central Russia of the Federal Road Agency
    Russian Federation Saint Petersburg SPI Lenavtodor
    Rwanda Rwanda Transport Development Agency within the Ministry of Infrastructure
    Samoa Land Transport Authority
    San Marino Azienda Autonoma di Stato per i Lavori Pubblici
    São Tomé and Príncipe National Institute of Roads (INAE-Instituto Nacional das Estradas)
    Saudi Arabia Ministry of Transport
    Senegal Ageroute Sénégal
    Serbia Putevi Srbije (Roads of Serbia)
    Seychelles Seychelles Land Transport Agency
    Sierra Leone Sierra Leone Roads Authority
    Singapore Land and Transport Authority
    Slovak Republic Slovak Road Administration (Slovenská Správa Ciest)
    Slovenia Slovenian Infrastructure Agency
    Solomon Islands Ministry of Infrastructure Development
    Somalia Ministry of Finance in the name of the Somalia National Highways Authority within the Ministry of Public Works
    South Africa Gauteng Province, Department of Road and Transport
    South Sudan South Sudan Roads Authority through the Ministry of Roads and Bridges
    Spain Dirección General de Carreteras e Infraestructuras de la Comunidad de Madrid dentro de la Consejería de Transportes, Vivienda e Infraestructuras de la Comunidad Autónoma de Madrid.
    Sri Lanka Road Development Authority
    St. Kitts and Nevis Ministry of Public Works, Utilities, Transport and Postal Services
    St. Lucia Ministry of Infrastructure, Ports, Energy and Labour
    St. Vincent and the Grenadines Ministry of Transport, Works, Urban Development & Local Government
    Sudan National Highway Authority of Sudan
    Suriname Ministry of Public Works, Transport and Communication
    Sweden Swedish Transport Administration
    Switzerland Civil Engineering Department of the Canton of Zurich
    Syrian Arab Republic Ministry of Transport
    Taiwan, China Directorate General of Highways within the Ministry of Transportation and Communications
    Tajikistan Ministry of Transport and Communications
    Tanzania Tanzania National Roads Agency within the Ministry of Works
    Thailand Department of Highways
    Timor-Leste Directorate of Roads, Bridges, and Flood Control of the Ministry of Public Works, Transport and Communications
    Togo Ministry of Infrastructure and Transport
    Tonga Ministry of Infrastructure
    Trinidad and Tobago Ministry of Works and Transport
    Tunisia Direction Générale des Ponts et Chaussées du Ministère de l'Équipement, de l'Habitat et de l'Aménagement du Territoire
    Turkey General Directorate of Turkish Highways ("Karayollari Genel Mudurlugu") under the Ministry of Transport and Infrastructure.
    Uganda Uganda National Roads Authority within the Directorate of Procurement
    Ukraine Automobile Roads Service of Kiev Region
    United Arab Emirates Roads & Transport Authority
    United Kingdom Highways England
    United States Los Angeles The California State Transportation Department (Caltrans)
    United States New York City New York State Department of Transportation
    Uruguay Dirección Nacional de Vialidad de Uruguay dentro del Ministerio de Transporte y Obras Públicas
    Uzbekistan State Unitary Enterprise Directorate for the Construction and Reconstruction of Public Roads"
    Vanuatu Public Works Department
    Venezuela, RB Ministerio del Poder Popular de Obras Públicas
    Vietnam Directorate for Roads of Vietnam within the Transport Ministry
    West Bank and Gaza Ministry of Public Works and Housing
    Yemen, Rep. Ministry of Public Works and Highways (MPWH)
    Zambia Road Development Agency (RDA)
    Zimbabwe Department of Roads of the Ministry of Transport and Infrastructural Development
  •   

    BidCo

    • Is one of the companies participating in the call for tender and meets all solvency, technical and administrative requirements to compete;
    • Is a privately and domestically-owned medium-sized Limited Liability Company (or its most common legal equivalent);
    • Operates in the largest business city;
    • Is up to date with all regulations and is in good standing with all relevant authorities, including those related to taxes;
    • Has all licenses and permits needed to operate in this technical area;
    • Has already responded to a public call for tender and is already registered with the procuring entity defined below;
    • Submits all required documents free of errors and without delay.

    Contract

    • Entails resurfacing 20 km of a flat two-lane road (not a highway and not under concession), connecting the largest business city to another city within the same state, region or province, if applicable), with an asphalt overlay of 40 to 59 mm (or its most common equivalent in the economy);
    • Value: USD 2.5 Million;
    • Does not include any other work (such as site clearance, subsoil drainage, bridgework or further routine maintenance).

    Procuring Entity

    • Is the agency in charge of procuring construction works for the authority that owns the road described above;
    • Is the sole funder of the works, has budget for the works and is solvent.

    Procurement Process

    • Is an open, unrestricted, and competitive public call for tender for resurfacing a road like the one described above;
    • Is completed without complaints/challenges/protests from interested parties;
    • Ends with the awarding of the contract to BidCo, whose bid satisfied all technical and administrative criteria and offered the best value for money.
  • Why it matters?

    Worldwide, public procurement accounts for between 10% and 25% of GDP on average.1 Up to one fifth of the value of government contracts may be lost to corruption.2 Developing countries spend over USD 820 billion annually on public procurement.3 A recent study from the European Parliament showed that corruption costs the EU between EUR 5bn in GDP terms on an annual basis.4

    As such, efficient public procurement is crucial to supporting governments achieve inclusive and sustainable development goals. On many national markets, the public sector is the biggest buyer, so when used strategically, public procurement can act as a catalyst for economic growth and social inclusion. Governments can significantly impact national employment and growth through legislation promoting the development and participation of SMEs in public procurement markets.5 SMEs contribute up to 33% of GDP and 45% of employment in developing countries, and about 64% of GDP and 62% of employment in developed countries.6 Examples of preferential provisions include allocations of quotas, divisions of large public contracts into smaller lots, restrictions on bid securities, and provisions of targeted technical assistance and trainings to SMEs bidding for public tenders.7

    Other policy goals can be promoted through public procurement.8 Governments have the opportunity to foster innovation by purchasing products and services that require investments in research and development, and/or having preferential rules.9 Provisions to promote the development of innovative goods and services include set-asides, bid preferences, and waived fees and quotas.10 Equal employment, social inclusion and respect of social rights are among the policy objectives that can be promoted through rules on the criteria for the eligibility and qualification of contractors, criteria for the award of contracts, and contract awards contingent to certain conditions being met.11

    Finally, the area of construction, the one on which the indicator’s case study focuses, was chosen because of the crucial role infrastructure plays on the productivity and social inclusiveness of an economy. There is a robust correlation between income inequality and infrastructure quantity and quality. While the private sector depends on a wide and efficient infrastructure network to remain competitive, citizens depend on such a network to access services and have equal opportunity.

    -----------------------------------

    1. European Commission, DG Enterprise and Industry. 2014. "Evaluation of SMEs’ access to public procurement markets in the EU: final report." European Commission, Brussels.

    2. World Bank. 2012. "Why Reform Public Procurement?". 

    3. World Bank. 2012. "Why Reform Public Procurement?". 

    4. European Parliamentary Research Service. 2016. "The Cost of Non-Europe in the area of Organized Crime and Corruption."

    5.  Asian Development Bank. 2012. "SME Development Government Procurement and Inclusive Growth." Manila: ADB.

    6. European Bank for Reconstruction and Development (EBRD). 2017. "Public Procurement Is open competition good for small and medium enterprises?" London: EBRD.

    7. Appelt, S., Galindo-Rueda, F. 2016. "Measuring the Link between Public Procurement and Innovation." OECD Science, Technology and Industry Working Papers, No. 2016/03.

    8. Rolfstam, M. 2012. "Understanding Public Procurement of Innovation: Definitions, Innovation Types and Interaction Modes."Available at http://dx.doi.org/10.2139/ssrn.2011488.

    9. Handler, H. 2015. "Strategic Public Procurement. An Overview." Policy Paper No 28. WIFO.

    10. Calderón, C., Servén, L. 2004. "The Effects of Infrastructure Development on Growth and Income Distribution." Policy Research Working Paper; No. 3400. Washington, DC: World Bank.

    11. Organisation for Economic Co-operation and Development (OECD). 2017. "Getting Infrastructure Right. A framework for better governance." Paris: OECD.

     

  • Frequently asked questions

    -What is the status of the indicator?

    -Will the indicator be part of the Doing Business ranking in the Doing Business 2020 report?

    -What kind of professionals contribute to the Contracting with the Government indicator?

     

    What is the status of the indicator?

    In parallel with the Doing Business 2018 study, the team conducted a pilot of the Contracting with the Government indicator for 18 countries. Through this pilot, and through extensive engagements with external experts, the team refined its questionnaire and conducted a much larger data collection exercise in parallel with the Doing Business 2019 study. Data was finalized for over 90 countries, though input was received for all 190 economies benchmarked by the larger Doing Business dataset. 

    Will the indicator be part of the Doing Business ranking in the Doing Business 2020 study?

    No. The team plans to include the indicator’s data and methodology in an Annex to the Doing Business 2020 study. The indicator will be considered for inclusion in the Doing Business ranking in the following study.

    What kind of professionals contribute to the contracting with the government indicator?

    The data is collected from 2 major sources:

    1.       Lawyers with experience in administrative and procurement law – these experts are pivotal in directing the team to the right laws and regulations, in providing a clear understanding of administrative powers, as well as in providing insights on their practical interactions with the procuring entity and the contractors.

    2.       Construction/engineering firms – these experts are key to helping the team understand how regulations are applied in practice, especially in some phases of the project in which lawyers might be less involved (such as quality controls and payments).

    The above contributions are complemented, where relevant and appropriate, by insights provided directly by the procuring entity, for example on budgeting or internal needs assessment procedures. WBG colleagues also provide useful insights on the practices and regulations of countries within their portfolios.