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  "documentTitle": "Best Practices in Private Sector Sustainable Procurement",
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      "text": "Case Study: Market capability to respond to ESF requirements in Vanuatu",
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      "text": "The market engagement process helped to clarify ESF requirements for Contractors and led to a re-balancing of retention/performance security obligations as the contract progressed and as risk reduced.",
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      "text": "Successful SPP depends on the capability and capacity of the market to deliver suitable solutions. Where the market is not yet ready to deliver Goods and services to the highest environmental standards, for instance, procurers need to be prepared to develop procurement strategies that allow for more gradual improvement. Therefore, an understanding of key markets and their capacities is vital.",
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      "text": "Market capacity can be improved by helping Contractors to develop over the course of project implementation. Borrowers could incorporate a contractual commitment for Contractors to improve their performance by meeting milestones that become incrementally more challenging over time. This type of arrangement should apply to issues that are measurable, such as a reduction in OHS incidents, a reduction in water or energy use, increased use of low-carbon materials or improvements in stakeholder satisfaction. This may not be an appropriate approach for environmental and social aspects that are subject to clear prohibitions in applicable national law or under lender’s policies (such as wastewater discharge standards or prohibition of forced or child labor).",
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      "text": "Market capacity is usually outlined by the Borrower in the PPSD and is a key determinant in the selection of procurement arrangements and the approach to market, such as whether a national or international procurement approach will be used. If the local market does not have the necessary capacity to address key risks, then at the earliest opportunity the Borrower should discuss with the Task Team how the procurement approach might be adapted to attract Bidders with the capacity to manage the project’s risks.",
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