What GAO Discovered
Global Financial institution knowledge point out that companies within the U.S. have been awarded a rather small proportion of contract bucks, however have been frequently a success when bidding. In step with Global Financial institution knowledge, from Global Financial institution fiscal years (FY) 2013 via 2022, borrower nations awarded on reasonable round 21,000 contracts valued at $15 billion according to yr to home and world companies. Of the ones contracts awarded to world companies, companies within the U.S. have been awarded the second-highest selection of contracts (about 3 p.c), however the ninth-highest contract bucks (about 2 p.c). Companies in China have been awarded the third-highest selection of world contracts (about 3 p.c), however probably the most contract bucks (about 29 p.c), as proven within the determine. Companies within the U.S. bid on few contracts, however gained about 70 p.c of contracts once they bid, in keeping with GAO’s research of Global Financial institution abstract knowledge from FY 2017 to October 2022.
Determine: Proportion of Global Financial institution Borrower World Contract Awards to Companies within the U.S., China, and France, Fiscal Years 2013-2022
Notes: The Global Financial institution’s fiscal yr starts July 1st. The quantity and greenback quantity of contracts awarded to companies within the U.S. and different nations is also over or underestimated because of boundaries within the Global Financial institution’s knowledge. As an example, debtors determine contract awardees according to the rustic of commercial registration, which would possibly not be mindful really helpful possession or different issues that can impact determinations of nationality and possession. The knowledge additionally come with contracts awarded to multilateral organizations such because the United International locations.
GAO’s research discovered that from calendar years 2017 via 2021, Global Financial institution debtors awarded 28 contracts to entities that can were on decided on U.S. sanctions and different lists of events of shock, corresponding to export keep an eye on lists. Those 28 contracts—value round $76 million—have been out of roughly 150,000 contracts value round $80 billion that GAO reviewed in its research masking the length. Global Financial institution officers instructed us that every one entities from all nations are eligible to bid for borrower contracts, with the exception of for sure entities debarred via the Global Financial institution or sanctioned via the United International locations. The ones officers additionally instructed us that the Global Financial institution monitors contract awardees towards some U.S. sanctions lists and that it will verify most effective six of the 28 contracts have been awarded to entities on U.S. lists. Division of the Treasury (Treasury) officers instructed us that Treasury isn’t chargeable for tracking person borrower contract awards, which happen after the Global Financial institution board approves a venture.
Why GAO Did This Learn about
The US is likely one of the greatest participants to the Global Financial institution. The Global Financial institution supplies financing to low- and middle-income nations for a variety of functions corresponding to for infrastructure and social and financial building tasks. Global Financial institution debtors are chargeable for managing tasks in keeping with the Global Financial institution’s insurance policies. The Global Financial institution calls for debtors to make use of aggressive procurement processes to award contracts for venture implementation. Treasury leads U.S. engagement with and has oversight duty for the Global Financial institution, and Treasury officers are stationed within the Place of job of the U.S. Government Director, which represents U.S. priorities and considerations at the Global Financial institution’s board.
GAO used to be requested to study Global Financial institution debtors’ contract awards. This document examines (1) the level to which Global Financial institution debtors awarded contracts to companies within the U.S. compared to companies in different nations; and (2) the level to which Global Financial institution debtors awarded contracts to entities that can were on decided on U.S. sanctions or different lists of events of shock, and what movements, if any, Treasury took in reaction.
GAO analyzed Global Financial institution knowledge on borrower contract awards from Global Financial institution FYs 2013 via 2022. GAO when compared contract awardees from calendar years 2017 via 2021 towards folks and entities on decided on U.S. sanctions and different lists of events of shock. GAO additionally carried out detailed evaluations of information recognized as a part of the research. GAO interviewed Global Financial institution and U.S. company officers to know the supply and boundaries in their knowledge.
For more info, touch Latesha Love-Grayer at (202) 512-4409 or LoveGrayerL@gao.gov.
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