tools directory

Community Led Procurement

What situations is this tool used in?

Community-led procurement (CLP) enables local communities to participate in or actively control the allocation of local government or donor funds for the purchase of goods or services. Cited benefits include increased accountability and transparency in the procurement process, reduced corruption and wastage, better quality or value for money, and increased use of local contractors.

Who is this tool aimed at?

CLP can be initiated by any procurement budget holder, including governments, public/private partnerships and civil society or donor organisations. The process is thought to enable better public understanding of procurement systems as well as building partnerships between all parties involved.

How Is the Tool Used?

Commonly, CLP involves three broad stages: preparation and initiation; building capacity and structures; procurement of goods and services. The preparatory stage includes clarification of scope and initial consultation with the community, leading to the establishment of a community procurement committee. Capacity building follows, and involves assessment of current knowledge, organisation of training and technical assistance, and the establishment of structures potentially including transfer of funds from the government or donor source to the community, The procurement phase focuses on the provision of support to the procurement committee for the development of procurement guidelines, policies and mechanisms, including monitoring and evaluation processes.

Who has used the tool?

The Community-led Infrastructure Finance Facility (CLIFF) in Mumbai, India, stemmed from a four-year DFID (UK Department for International Development) funded research project exploring the possibility for communities to carry out their own habitat developments in Africa, Asia and Latin America. CLIFF provides venture capital and other financial products directly to organisations of the urban poor, supporting community-led slum upgrading schemes conceived in partnership with city authorities.

CLIFF report: http://www.developmentfunds.org/pubs/CLIFF%202.pdf 

Where to find out more

Overview of community-led procurement: http://www.pgexchange.org/index.php?option=com_content&view=article&id=162&Itemid=157