IFI governance


Bank hired in Israel without bidding process

22 September 2009

The World Bank was awarded a $500,000 contract to examine the Israeli Electricity Corporation’s (IEC) financial condition with no bidding process. If this were a Bank-funded project, such a procedure would not be allowed. “The appointment of the bank without a tender process, with the reasoning that no other entity in the world is able to do the job, is at best incorrect,” said Professor Daniel Czamanski, who chaired a committee that examined the structure of the electricity markets in Israel. The IEC has been criticised by environmental protection minister Gilad Erdan for promoting decisions that pose environmental and health impacts on Isreal. “There is just one reason to hire the World Bank,” added Czamanski, “IEC is trying, as it has in the past, to blind both the Electricity Authority and the public by enlisting impressive sounding names and political clout to avoid implementation of the law.”