Presentation by George Jadoun – ITC-ILO for The High Level Forum on Public Procurement Reform in Africa Tunis, 16-17 No

1. The Potential of new Technologies & Capacity-development approach for the professionalization of the practice of Public Procurement in Africa. Presentation by George Jadoun – ITC-ILO for The High Level Forum on Public Procurement Reform in Africa Tunis, 16-17 November 2009

2. Context Public Procurement Reforms in Africa have been the focus of attention for the last two decades. The initiatives undertaken by the African governments (and regional economic integration bodies) were supported by a favourable international climate created by the Paris Declaration on Aid Effectiveness and have resulted in tangible improvements to one or more pillars of the national public procurement systems in a number of countries across the African continent.

3. Essential Pillars of a Modern Public Procurement System OECD/DAC in collaboration with key development partners managed to endorse a “landmark” document describing the attributes of a well-functioning Public Procurement system along 4 pillars as follows: • PILLAR 1: Legislative and Regulatory frameworks (laws, regulations, model bidding documents , conditions of contracts, bidders’ review /complaints procedures) • PILLAR 2: Institutional framework and Management Capacity (Integration with Financial Management, Annual Procurement Planning, Central regulatory bodies, Procurement statistics, training, quality control)

4. Essential Pillars of a Modern Public Procurement System(continued) • PILLAR 3: Procurement Operations and Market Practices (capable staff, records, delegation, dialogue with private sector, commercial banking system, contract administration, ADR) • PILLAR 4: Integrity and Transparency of PP system (internal control and audit, bid challenge procedures, anti-corruption measures, corruption watchdogs, codes of ethics).

5. Current Progress of the Procurement Reform Process Substantial progress has been achieved in putting into place adequate legal and regulatory instruments that are in line with the principles enshrined in OECD Pillar I. However in the rush to comply with international norms, significant issues were overlooked: • Proper analysis of implications for national development, pro-poor and sustainability considerations • Capacity of the public and private operators to deliver in the new setting. • Parallel work on strengthening internal control systems and pro-active and consistent enforcement of the new legal provisions.

6. Current Progress of the Procurement Reform Process(continued) Progress in complying with the requirements of Pillars 2, 3 and 4 needs long-term commitment and regrettably the improvements in these 3 pillars are too slow and have been below the threshold of expectations of many observers and concerned parties.

7. Current Progress of the Procurement Reform Process(Continued) In short, an adequate legal framework is essential but will not do much to improve effectiveness unless sustained effort is invested to upgrade the attributes of a Public Procurement system as stipulated under Pillars II, III, IV.

8. Current Progress of the Procurement Reform Process(Continued) Recent research and experience indicate that adequate management systems and competent staff (i.e. efficient institutions) are the engine of economic and social development to an extent far exceeding the impact of laws and regulations. Therefore competent Human Resources and long-term Capacity-development effort of the public and private sectors , the subject of my presentation, are central to the effectiveness of the reform (especially Pillars 2,3 and 4) as well as a pre-requisite for the realisation of its benefits.

9. Capacity Development in the Procurement Function The overall objective of capacity development in the procurement function is to improve system effectiveness and enhance accountability of the contracting authorities and their staff.

10. Capacity Development in the Procurement Function(continued) HRD Actions are foreseen at three levels: Level 1: Correct Application of Laws/Regulations Level 2: Procurement Business process know-how for managers and practitioners of procurement activities (includes Training on Procurement Audit and Internal control processes). Level 3: Training of Economic Operators on “how to compete” for government procurement opportunities.

11. Contents of the proposed training Modules Level 1. Legal and Procedural Procurement Training (Procurement law/regulations, procurement oversight and audit systems, bid challenge procedures) to be adapted for each country’s specifity. Level 2 a. Procurement Management Training Modules for practitioners in 4 sets covering Goods / Works/ Physical Services & Intellectual Services. Module I: Definition of Procurement Requirements and Procurement Planning, market research, performance/technical specifications, social and environmental considerations.

12. Contents of the proposed Training Modules(cont’d) Module 2: The Bidding Phase based on simplified Model Bidding Documents (rules of the competition, proportionate evaluation criteria, Incoterms, pricing, e-tendering, etc.) Module 3: Contract Management (contract management plan, quality assurance, change management, theory of pricing of claims, ADR, warranty and maintenance obligations).

13. Contents of the proposed Training Modules(cont’d) Level 2 b.: Module Training set for Procurement Managers and Procurement Auditors • Economics of Public Procurement • Annual Procurement Planning • Procurement Business Process in traditional and e-procurement modalities and design of Internal Control systems • Risk Management including systems for prevention and detection of fraud and corruption • Sampling for control and Audit Purposes • Performance benchmarking

14. Contents of the proposed Training Modules(cont’d) Level 3. A Module on “how to compete effectively” in government procurement opportunities dedicated for building the capacity of economic operators in the private sector (tracking business opportunities, pricing of bids, fulfilment of administrative and procedural requirements, bid challenge procedures, integrity.)

15. Key Features of the Proposed Capacity Development Approach • Development of competency-based training modules (“how to” guidance) covering all the competencies needed for execution and oversight of the procurement cycle. • Definition of a competency baseline for each category of public procurement staff (goods/works/services). • Training Modules with state-of-the-art technological features supplemented by short video lectures on each topic (also available with CD-ROM). • Training Modules are available for free use in on –line self-learning as well as in formal Face-to-Face Training sessions organized by National/Regional Training Institutions.

16. Key Features of the Proposed Capacity Development Approach(cont’d) • Organisation of TOT programmes on the use of these Training Modules in blended Learning (Distance plus Face-to-Face sessions). • Competency-based Training Package that is easily adapted for independent testing and certification by a designated professional body if so desired at national or regional levels in order to facilitate enforcement of strict accountability standards for procurement as a recognized profession across the Continent. • Creation of E-forums for exchange of cross-country experiences and establishment of “communities of practice”. • Establishment of National Buyers Associations and development of codes of conduct for buyers and sellers.

17. The capacity-development approach in this presentation has been successfully pursued by the International Training Centre of the ILO in Turin (ITC-ILO) in similar assignments for: • Central and Eastern Europe (1992-2000) in collaboration with OECD/SIGMA • World Bank Borrowers at national and inter-regional levels since 1990

18. ITC-ILO will be pleased to work with you for operationalisation of this approach in the interest of consolidation of current procurement reform effort in the AFRICAN Continent.

19. THANK YOU