Fostering Aid Effectiveness: Program-Based Approaches and What it means for Procurement?

1. Fostering Aid Effectiveness:Program-Based Approaches and What it means for Procurement? Presented by Jocelyn Comtois May 8 2006 International Conference Governmental Financial Management

2. Paris Declaration on Aid Effectiveness • Endorsement on March 2, 2005 • Focus in five areas: ownership, alignment, harmonization, managing for results, and mutual accountability for which there are 56 partnership commitments. • Coherent model of development cooperation aligned with developing country priorities and the use of Partner country systems. • 117 Countries and Organisations have adhered to the Paris Declaration

3. Paris Declaration Progress Indicators: • OWNERSHIP: (1) • ALIGNMENT (7) • 2ab and 5ab: Strengthen and use country Financial and Procurement systems • HARMONIZATION (2) • MANAGING FOR RESULTS (1) • MUTUAL ACCOUNTABILITY (1)

4. Forums developed to foster implementation of the undertakings/indicators under the Paris Declaration • Joint Venture Public Finance Management • Joint Venture Procurement • Joint Venture Management for development results • Joint Venture Monitoring

5. Benchmarking Tool for Partner Country Procurement Assessment Capacity • The methodology will use Baseline Indicators and Compliance indicators. • The Baseline Indicators will be regroup under 4 pillars which are broken-down in a number of sub-indicators • Legislative and Regulatory Framework • Institutional Framework and Management Capacity • Procurement Operations and Market Practices • Integrity and Transparency of the Public Procurement System

6. Example Applying of Draft Methodology • Pillar I – Legislative and Regulatory Framework • Indicator 1. Public procurement legislative and regulatory framework achieve the agreed standards and complies with applicable obligations. • 8 Sub-indicators • Indicator 2. Existence of Implementing Regulations and Documentation • 6 Sub-indicators • Score 32 out of 42

7. Example Applying of Draft Methodology • Pillar II – Institutional Framework and Management Capacity • Indicator 3. The public procurement system is mainstreamed and well integrated into the public sector governance system. • 4 Sub-indicators • Indicator 4. The country has a functional normative/regulatory body. • 4 Sub-indicators • Indicator 5. Existence of institutional development capacity. • 4 Sub-indicators • Score 10 out of 36

8. Example Applying of Draft Methodology • Pillar III Procurement Operation and Market Practices • Indicator 6. The country's procurement operations and practices are efficient. • 4 Sub-indicators • Indicator 7. Functionality of the public procurement market • 4 Sub-indicators • Indicator 8. Existence of contract administration and dispute resolution provisions. • 3 Sub-indicators • Score 11 out of 33

9. Example Applying of Draft Methodology • Pillar IV Procurement Operation and Market Practices • Indicator 9. The country has effective control and audit systems • 5 Sub-indicators • Indicator 10. Efficiency of appeals mechanism • 5 Sub-indicators • Indicator 11. Degree of access to information • 2 Sub-indicators • Indicator 12. The country has ethics and anticorruption measures in place • 7 Sub-indicators • Score 17 out of 57

10. Applying Results of the Methodology

11. Foreseeable Next Steps • Terminate version 3 by end of May • “Road test” of the final methodology with Partner countries. • Regional meeting to address the results of implementing tool in real case situation • JV meeting to share results.

12. Summary Therefore the JV on Procurement: • Provide an harmonize methodology based on best practices; • Risk assessment tool and risk mitigating strategy associated with capacity development; • Ultimately foster increase use of countries system; and • Provide methodology to measure progress overtime.

13. Results • Partners and donors can tangibly demonstrate how they meet fiduciary obligations, and how risks are managed and mitigated. • Ultimately citizen of partners and donors are reassured of the maximization of Aid Effectiveness.

14. QUESTIONS / COMMENTS