East african public procurement forum june 2008 procurement context
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EAST AFRICAN PUBLIC PROCUREMENT – FORUM JUNE 2008 – Procurement Context. TOPIC Context of Public Procurement in East Africa and Objectives of this Forum ******* By Mbuba Mbungu Senior Procurement Specialist World Bank. EAST AFRICAN PUBLIC PROCUREMENT – FORUM JUNE 2008.

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EAST AFRICAN PUBLIC PROCUREMENT – FORUM JUNE 2008 – Procurement Context

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EAST AFRICAN PUBLIC PROCUREMENT – FORUM JUNE 2008 – Procurement Context

TOPIC

Context of Public Procurement in East Africa and

Objectives of this Forum

*******

By Mbuba Mbungu

Senior Procurement Specialist

World Bank


EAST AFRICAN PUBLIC PROCUREMENT – FORUM JUNE 2008

Procurement Context

Three Reminders

  • Public Procurement is about acquisition of goods, works and services (issues of stores, real property, stocks etc. belong to other areas of public sector management)

  • Key considerations of an efficient public procurement system are Economy, Efficiency, Transparency, and Equal opportunity to suppliers, contractors and consultants.

Be Realistic


EAST AFRICAN PUBLIC PROCUREMENT – FORUM JUNE 2008 – Procurement Context

(iii)A system via which huge amounts of public procurement are spent: about 12 % GDP, representing almost half of government spending

Estimated public procurement expenditures

Uganda, US$ 1050 million

Tanzania US$ 1440 million

Kenya US$ 2280 million

(Source: World Development Indicators 2007).


EAST AFRICAN PUBLIC PROCUREMENT – FORUM JUNE 2008 – Procurement Context

  • All EA Countries have enacted Public Procurement Laws whose main objectives are (among other things) to streamline public procurement to ensure it is carried out in a non-discretionary manner in order to:

    • achieve value for money

    • enhance efficiency in budget execution and service delivery,

    • reduce corruption in procurement, and

    • promote the private sector


EAST AFRICAN PUBLIC PROCUREMENT – FORUM JUNE 2008 – Procurement Context

CURRENT OBSERVATIONS .. In each country the implementation of the law is not fully achieving the objectives due to a combination of factors (some are):

  • Weak enforcement of compliance

  • Low capacity of the public sector (inadequate technical skills in procuring entities to support procurement)

  • Weak and/or uniformed private sector; including civil society


EAST AFRICAN PUBLIC PROCUREMENT – FORUM JUNE 2008 – Procurement Context

CURRENT OBSERVATIONS (cont’d)

  • Poor Governance (including weak roles of Competent Authorities) that allows corruption in public procurement

  • Unclear provisions in the laws

  • Unclear and/or conflicting mechanisms for dealing with Appeals and Complaints

  • Weak roles of Development Partners and Civil Society

  • Poor internal financial controls

  • Limited progress on aligning Government and Donor procedures


EAST AFRICAN PUBLIC PROCUREMENT – FORUM JUNE 2008 – Procurement Context

CURRENT OBSERVATIONS (cont’d)

  • Corruption in procurement is most lucrative (to the corrupt)

  • Public procurement has been in the spotlight recently.


EAST AFRICAN PUBLIC PROCUREMENT – FORUM JUNE 2008 – Procurement Context

CURRENT OBSERVATIONS (cont’d)

These factors are in varying degrees from country to country. Some countries are strong in some cases and weak in others.


EAST AFRICAN PUBLIC PROCUREMENT – FORUM JUNE 2008 – Procurement Context

The Forum will focus on three key areas make the procurement laws effective by:

  • Enforcing compliance

  • Improving procurement capacity

  • Having effective operating systems, e.g.

    -Appeals are complaints

    - Information insemination

    - Debarments

    - Raising the red flags

    - Monitoring and measuring procurement efficiency

    - etc


EAST AFRICAN PUBLIC PROCUREMENT – FORUM JUNE 2008Procurement Context

This Forum is an opportune event for participants to:

  • Learn about what works well and what does work well, and

  • Develop ideas on how stakeholders can support and contribute to an effective public procurement system.


FINALLY

  • The event is about learning from each other.

  • A possible first of such annual EA Procurement Forums.

    “No Country should expect to develop if it does not take care of its resources…money”.

  • THANK YOU


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