Global business opportunities through multilateral procurement

Business Sweden works to increase the presence of Swedish companies in multilateral development projects. We collaborate with Team Sweden and facilitate every step through access to information, networks and concrete business opportunities.

Every year, multilateral organisations fund over USD 100 billion worth of procurement in Development Assistance Committee (DAC) countries. There are ample opportunities for Swedish companies to participate in these projects, yet current participation is low compared to other countries.

 

 

Business opportunities with multilateral development banks and climate funds

Multilateral Development Banks (MDBs) lend money to low- and middle-income countries to finance projects that promote development and poverty reduction. These investments are often made in sectors where Swedish companies are at the forefront, such as infrastructure, healthcare, information and communication technology (ICT), education, energy and the environment.

 

Business Sweden can help Swedish companies through the three main steps of the process:

  1. Project initiation: MDBs and the local government body determine the direction of the project.
  2. Procurement phase: The tender is released for bidding, with the project requirements firmly in place.
  3. Decision-making stage: The local government reviews bids received during the procurement phase and decides whom to award the tender and what is purchased, but the MDBs can influence the decision and make recommendations. 

 

How it works

Step 1: Project initiation

  • MBDs provide loans to low- and middle-income countries to finance development projects.
  • The project sector is determined (e.g. infrastructure, healthcare, ICT, education, energy and the environment) in consultation with the local government and based on the country’s needs.
  • Early engagement is crucial for stakeholder management.
  • A government implementing agency is appointed to collaborate with the MDB throughout the development of the project and the procurement phase.

Step 2: Procurement phase

  • When the scope of the project and the procurement’s requirements and specifications (Terms of Reference) have been established between the MDBs and the implementing authority, all relevant information is published on the MDBs’ websites, including the tender and rules for procurement bidding.
  • Once the tender has been published, the requirements can not be changed or updated.

Step 3: Decision-making stage

  • The local government, through its implementing authority, makes the final decision on whom to award the contract.
  • The MDBs can make recommendations regarding project implementation and contract details.