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Joint WTO/WB Regional Workshop on Procurement Reforms. Overview of Procurement Reforms in Africa Bernard Abeillé Regional Procurement Adviser at the World bank January 14-17, 2003. Fiduciary Responsibility. WB’s Legal Obligations :

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joint wto wb regional workshop on procurement reforms
Joint WTO/WB Regional Workshop on Procurement Reforms

Overview of Procurement Reforms in Africa

Bernard Abeillé

Regional Procurement Adviser at the World bank

January 14-17, 2003

fiduciary responsibility
Fiduciary Responsibility
  • WB’s Legal Obligations :
    • The Bank has a fiduciary responsibility to ensure that “the proceeds of any loan/credit are used only for the purposes for which the loan was granted, with due attention to considerations of economy and efficiency, and without regard to political or other non-economic influences or considerations”.
fiduciary responsibility1
Fiduciary Responsibility
  • To fulfil its fiduciary responsibility, the Bank has established detailed Guidelines
  • Basic principles governing the Bank’s Procurement Policies are :
    • Need for economy and efficiency
    • All eligible bidders have equal opportunity
    • Development of domestic contracting
    • Transparency in the procurement process
current trend includes
Current Trend includes
  • Moving from transaction-intensive fiduciary work to the development of sound national fiduciary systems
    • Sound public procurement policies and practices are among the essential elements of good governance
  • Being prepared to work on Multi-Donor Budget Supports (MDBS), SWAPs and PRSCs
  • “Appropriateness of Expenditures”
sound national procurement systems
Sound National Procurement Systems
  • To ensure that sound national procurement systems are in place, the Bank carries out :
    • Capacity Assessments
    • Country Procurement Assessment Reports (CPARs) :
      • Jointly with Government and other MDBs
      • Share its analysis/findings -- including risks
      • CPAR Recommendations, in general, lead to :
        • An Action Plan, and
        •  A Procurement Reform
cpars follow up
CPARs Follow-up
  • As part of Country Dialogue & Capacity Building, the Bank:
    • Discusses action plans
    • Provides grants to support procurement reforms
    • Establishes triggers related to procurement as part of policy packages
    • Organizes country and sub-regional Procurement Training Programs
  • Sub-Regional Organizations will play a major role (WAEMU, COMESA …)
  • Partnership with other donors is growing rapidly in this area
frequent structural problems
Frequent Structural Problems
  • Lack of public expenditures management systems/controls
  • Lack of Procurement E & M systems
  • Complexity of national procedures  Slow process and weak absorptive capacity
  • High unit prices -- resulting from various factors, in particular the evaluation by bidders of country specific commercial risks
  • Lack of efficient, transparent and independent appeal mechanisms (to establish confidence an partnership with the private sector)
frequent deficient practices
Frequent Deficient Practices
  • Slicing and poor packaging of contracts
  • Limited advertisement and insufficient competition
  • Abuse of direct contracting as a response to critical situations
  • Inadequacy of bid evaluation criteria
  • Modification of bid evaluation criteria after bid opening
  • Negotiations of terms and conditions of contracts after contract award
key principles for a good procurement system
Key Principles for a good procurement system
  • Effective Advertisement (broad + sufficient time)
  • Public Bid Opening (immediate opening of all financial bids)
  • Well-formulated Bidding Documents
    • Bid Evaluation Criteria(non-discriminatory, disclosed, and in monetary terms)
    • Qualification of bidders reviewed separately
    • Contract Award to the lowest evaluated bidder -- without negotiations
procedures should exclude
Procedures should exclude:
  • Use of two-envelope systems (except for Consultants)
  • Use of merit-point system to evaluate bids (except for Consultants)
  • Combination of bid evaluation with qualification
  • Use of non-quantified bid evaluation criteria
  • Restricting access to bidding process
modern procurement regulations
Modern Procurement Regulations
  • Loosing bidders must have an effective way to submit protests :
    • Protests submitted to an independent entity
    • Protests before contract award may lead to suspend the contract award decision
    • Protests after contract award may lead to compensatory damages
  • Contracting Entities :
    • Conducting bid evaluations are distinct from those having a regulatory/control functions
    • Have access to a series of standard documents and computerized information systems
strategy for efficiency
Strategy for Efficiency
  • Enhance accountability of contracting entities, but

install independent audits + efficient controls + sanctions

  • Eliminate steps and controls with no value-added
  • Enforce the use of Procurement Plans
  • Reconcile budget programming and contract execution
  • Associate the private sector in the oversight of the procurement through their participation in:
      • Control and surveillance
      • Information systems
      • Regulatory Body
      • Appeal Mechanisms
observatory of country procurement reforms
Observatory of Country Procurement Reforms
  • The Bank is maintaining for the Africa Region a “Ranking Index” of Country Procurement Reforms to monitor progress on:
    • Legal Procurement Framework & Regulations
    • Procurement Practices & Standard Tools
    • Institutional Capacity & Proficiency of Staff
    • Independent Control Systems & Appeal Mechanisms
    • Anti-Corruption Measures
why procurement reforms become so important
Why Procurement Reforms become so important ?
  • In the past, donors procedures were used for the largest part of investments (>80%)
  • Now, with Multi-Donor Budget Support (MDBS), national systems are playing a growing role
  • The Bank is ready to increase Proc. Review Thresholds (PRTs) if national systems are found acceptable
  • Better national systems are performing, more donors are able to accept national procedures
  • Procurement Reforms are at the center of:
    • WB Country Assistance Strategy (CAS); and
    • PRSCs + MDBS
end remarks
End remarks

Having sound national Procurement systems

in place

poses a tremendous challenge

which requires sustained commitment

on the part of political leaders

+

pressure from society