Description

Pooling procurement consists of combining inputs to several climate projects. By pooling procurement, local governments can increase their bargaining power, reduce transaction costs, improve access to leading experts and technologies, and enhance delivery times. This approach has been proven effective for assets such as electric buses across multiple operators.

Instrument category

Aggregation models

Implementation status

Low - limited evidence available

Enabling conditions and success factors

• Strong coordination between public sector entities and departments.
• Robust public procurement processes.

Instrument benefits

• By using pooled procurement, local governments can increase their bargaining power, reduce transaction costs, improve access to leading experts and technologies, and enhance delivery times. All this leads to better unit costs, stronger value for money and better ability to deploy low-carbon and resilient infrastructure and services.

References

Case studies

Pooled procurement for purchasing e-buses for multiple operators in Santiago, Chile