World Bank RFP: Strengthening Institutional Capacity for Public Financial Management in Water Utilities

The World Bank's RFP for Strengthening Institutional Capacity for Public Financial Management (PFM) in Water Utilities represents a strategic opportunity for organizations to contribute to sustainable water sector reform. This procurement is part of the World Bank's Water Global Practice, which aims to improve water security and sanitation services worldwide. The RFP is motivated by the recognition that many water utilities in developing countries face critical financial management challenges, including inadequate budgeting systems, weak internal controls, poor revenue collection, and lack of financial transparency. These issues lead to high levels of non-revenue water (NRW), inefficiencies in operations, and inability to access capital markets, which perpetuates a cycle of underinvestment and poor service delivery. By strengthening PFM, the World Bank seeks to create bankable utilities that can attract private investment and deliver sustainable services. The project will involve technical assistance, training, and support for implementing robust financial management systems, including budgeting, accounting, procurement, treasury management, and internal audit. It will also focus on improving tariff setting, revenue collection, and reducing water losses. The RFP targets a diverse range of beneficiaries, from large urban utilities to smaller service providers in rural areas. The total project value is expected to be between $5 million and $10 million, with a duration of three to five years. Eligible countries include those eligible for IDA and IBRD financing, particularly in Sub-Saharan Africa, South Asia, and Latin America. The deadline for proposals is July 30, 2026, and the World Bank has indicated high urgency due to the critical state of water infrastructure in many regions. Bidders must demonstrate a track record of successful PFM reforms in the water sector, as well as expertise in change management, stakeholder engagement, and capacity building. The proposal should include a detailed work plan, staffing plan, budget, and results framework. The World Bank will evaluate proposals based on technical quality, innovation, past performance, and cost. This RFP is a significant opportunity for consulting firms, NGOs, and consortia to contribute to global development goals and enhance their reputation in the water sector. GSLI training can support bidders by providing resources to strengthen their proposal and implementation capacity.

Strategic Overview

The World Bank's RFP for Strengthening Institutional Capacity for Public Financial Management (PFM) in Water Utilities represents a strategic opportunity for organizations to contribute to sustainable water sector reform. This procurement is part of the World Bank's Water Global Practice, which aims to improve water security and sanitation services worldwide. The RFP is motivated by the recognition that many water utilities in developing countries face critical financial management challenges, including inadequate budgeting systems, weak internal controls, poor revenue collection, and lack of financial transparency. These issues lead to high levels of non-revenue water (NRW), inefficiencies in operations, and inability to access capital markets, which perpetuates a cycle of underinvestment and poor service delivery. By strengthening PFM, the World Bank seeks to create bankable utilities that can attract private investment and deliver sustainable services. The project will involve technical assistance, training, and support for implementing robust financial management systems, including budgeting, accounting, procurement, treasury management, and internal audit. It will also focus on improving tariff setting, revenue collection, and reducing water losses. The RFP targets a diverse range of beneficiaries, from large urban utilities to smaller service providers in rural areas. The total project value is expected to be between $5 million and $10 million, with a duration of three to five years. Eligible countries include those eligible for IDA and IBRD financing, particularly in Sub-Saharan Africa, South Asia, and Latin America. The deadline for proposals is July 30, 2026, and the World Bank has indicated high urgency due to the critical state of water infrastructure in many regions. Bidders must demonstrate a track record of successful PFM reforms in the water sector, as well as expertise in change management, stakeholder engagement, and capacity building. The proposal should include a detailed work plan, staffing plan, budget, and results framework. The World Bank will evaluate proposals based on technical quality, innovation, past performance, and cost. This RFP is a significant opportunity for consulting firms, NGOs, and consortia to contribute to global development goals and enhance their reputation in the water sector. GSLI training can support bidders by providing resources to strengthen their proposal and implementation capacity.

Who is it For?

This solicitation is specifically designed for international consulting firms, non-governmental organizations (NGOs), research institutions, and consortia with proven expertise in public financial management (PFM) and water utility operations. Eligible entities must have a minimum of ten years of experience in institutional capacity building within the water sector, including at least five successful PFM reform projects in developing countries. The World Bank encourages submissions from organizations that have direct experience working with water utilities, regulatory bodies, and ministries of finance. Consortia are welcome, provided they include at least one local partner to ensure contextual relevance and stakeholder buy-in. Key personnel must include a team leader with a master's degree in finance, public administration, or a related field and at least fifteen years of experience; a PFM specialist with expertise in accounting standards (e.g., IPSAS) and financial management information systems (FMIS); and a monitoring and evaluation (M&E) specialist. The target beneficiaries are water utilities in countries eligible for International Development Association (IDA) and International Bank for Reconstruction and Development (IBRD) financing. Priority regions include Sub-Saharan Africa (e.g., Kenya, Uganda, Ghana), South Asia (e.g., Bangladesh, Nepal), and Latin America (e.g., Peru, Colombia). Organizations must demonstrate an understanding of the political economy of water utility reform and the ability to engage with diverse stakeholders, from utility management to labor unions.

Priorities

The World Bank's global priorities under this RFP are aligned with its goals to end extreme poverty and promote shared prosperity through sustainable water services. Specifically, the donor seeks to strengthen the financial viability of water utilities to ensure they can deliver safe, affordable, and reliable water supply and sanitation services. Key performance indicators (KPIs) include: reduction in non-revenue water (NRW) by at least 20% from baseline within three years; improvement in the operating cost coverage ratio to >1.1; reduction in accounts receivable days to <60 days; and improved credit rating of the utility (e.g., achieving a corporate credit rating). The Bank also prioritizes gender-responsive budgeting and the integration of climate resilience into PFM practices. Proposals must demonstrate alignment with the country's national water sector strategy and poverty reduction goals. The World Bank emphasizes innovation, including the use of digital tools for financial tracking, blockchain for revenue collection, and performance-based contracts. Additionally, the Bank values sustainability—capacity building efforts should include train-the-trainer components and institutional memory retention. Bidders must show how their approach will foster ownership and reduce dependency on external consultants. Expected impact includes improved service delivery, increased household connections, and enhanced accountability to citizens. The ultimate goal is to create bankable utilities that attract private sector investment.

Eligibility

Eligibility for this RFP is governed by the World Bank's Procurement Regulations for IPF Borrowers (July 2016, revised November 2020). Bidders must be legal entities (public or private) with no conflict of interest, and must not be debarred or suspended by the World Bank. Financial eligibility requires audited annual reports for the past three years demonstrating positive net worth and annual turnover of at least $5 million for a single entity, or a combined turnover of $10 million for a consortium. The bidder must have at least three references of similar PFM assignments in the water sector completed in the last ten years, each with a contract value of at least $500,000. Corporate legal registration must be valid and include tax compliance certificates. Spatial eligibility: the bidder must demonstrate a presence in the target country or region, either through a permanent office or a formal partnership with a local entity. Subcontracting is allowed for up to 30% of the project value. Key personnel must be employed by the bidder or affiliates. Proposers must submit a signed declaration of eligibility, including a commitment to abide by the World Bank's anti-corruption and fraud policies. Failure to meet any of these criteria will result in automatic disqualification. Additionally, the bidder must demonstrate experience working with IDA/IBRD-funded projects, including familiarity with World Bank procurement and disbursement procedures. It is advisable to include detailed CVs of proposed experts and a statement of availability.

Path to Success

To succeed in this World Bank RFP, bidders must follow a strategic roadmap that integrates GSLI training to enhance proposal quality and implementation capacity. Step 1: Conduct a Thorough Needs Assessment and Partner Identification. Prior to bid preparation, the lead organization must conduct a rapid assessment of the target water utility's PFM maturity, using tools like the Public Expenditure and Financial Accountability (PEFA) framework. Identify gaps and align the proposal's technical approach with the specific challenges identified. Simultaneously, form a consortium with local partners that have established relationships with the utility and relevant ministries. GSLI's course on 'Financial Management for NGOs' can train project teams in PFM best practices and enhance credibility. Step 2: Develop a Comprehensive Technical Proposal. The proposal should include a detailed work plan with at least three phases: diagnostic, implementation, and sustainability. Each phase must have clear deliverables, timelines, and staff assignments. Highlight the use of innovative tools such as financial management dashboards and mobile payment systems. Incorporate a robust M&E plan with baseline data and SMART indicators. GSLI's 'Monitoring & Evaluation (M&E)' course equips teams with skills to design such frameworks. Step 3: Strengthen Institutional Capacity with GSLI Training. Propose to embed a training component using GSLI courses for utility staff, including 'Procurement & Supply Chain' and 'Writing Winning Proposals' for future fundraising. This adds value and ensures capacity building is sustainable. Step 4: Submit a Competitive Financial Proposal. Prepare a detailed budget that aligns with the World Bank's cost norms, including fees, per diems, travel, and equipment. Ensure that indirect costs do not exceed 15% of direct costs. Include a cost-sharing element to demonstrate commitment. Attend the pre-bid conference if offered, and seek clarifications through the official channel. After submission, be available for negotiations. By leveraging GSLI's training, bidders can demonstrate a holistic approach to capacity building, which aligns with the World Bank's emphasis on institutional strengthening.

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Deadline: 2026-07-30

Persona: General

Urgency: Normal