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BUILDING PARTNERSHIP AND TRUST FRAMEWORK CONTRACT FOR PETROL: HOW PANAMA SAVED USD20M?

Joao Veiga Malta, Senior Procurement Specialist, LCSPT Diomedes Berroa , Senior Operations Officer, LCSPT Pedro Arizti , Public Sector Specialist, LCSPS Washington DC, April 14, 2011. BUILDING PARTNERSHIP AND TRUST FRAMEWORK CONTRACT FOR PETROL: HOW PANAMA SAVED USD20M? LESSONS LEARNED.

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BUILDING PARTNERSHIP AND TRUST FRAMEWORK CONTRACT FOR PETROL: HOW PANAMA SAVED USD20M?

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  1. Joao Veiga Malta, Senior Procurement Specialist, LCSPTDiomedesBerroa, Senior Operations Officer, LCSPT Pedro Arizti, Public Sector Specialist, LCSPS Washington DC, April 14, 2011

  2. BUILDING PARTNERSHIP AND TRUST • FRAMEWORK CONTRACT FOR PETROL: HOW PANAMA SAVED USD20M? • LESSONS LEARNED

  3. The Bank as trust partner? Value added?

  4. What the Bank brings • Knowledge • Honest broker • International experience • Lessons learned • Inside and outside region

  5. Thematic Team The right skills

  6. The team • CMU • Procurement • Financial Management • PREM • High level international experts

  7. Reform is a Big challenge

  8. A new paradigm

  9. The Questions

  10. The Questions • What does the government perceive as the issues? • What are it’s objectives? • What do other stakeholders think? • How committed are they? • Can we deliver? • Do we have the resources?

  11. Where do we start

  12. Tools • Diagnostic tools • Quick gains • Identify opportunities • E-Procurement • Capacity building • Framework agreements • Which ones? • What model?

  13. Preparing the groundwork

  14. Transition

  15. Transition process • New administration • Reengagement • Maintain momentum during transition • Resources • NLTA • WPA • Strategic plan – anchor • Bank • From transactions to result

  16. More than one approach

  17. More than one approach • Best fit • New government • New priorities?

  18. Sustainable

  19. Instruments and resources Programmatic approach • Bank strategy - CPS • Analytical instruments: CPAR/ CFAA • Lending operations: Investments and DPLs • Knowledge sharing • NLTA Vs IDF • WPA • Integral Public Sector reform approach ON TIME

  20. Some Results • 20 million saved in the purchase of Fuel • Approximately 50 percent of the fuel budget • Previously 70 government agencies were consuming 100 percent of the budget. • Now 280 agencies are covered, with a total decline in consumption of 10 percent. • Time to purchase common use goods down from 56 days to less than 3 (once comptroller processed is reformed it will be further reduced) • Increased trust in government procurement

  21. Impact on Bank projects

  22. Impact on Bank Projects • All projects replaced shopping through the use of government Framework Agreements • Increasing efficiency • Increased competition • Reducing opportunity for corruption • All business opportunities and results published in Panacompra

  23. LESSONS LEARNED

  24. Nurture relationship

  25. Decisions have implications

  26. Partnership

  27. Honesty

  28. Stepping on toes

  29. Expect challenges

  30. Reform is a continual process

  31. Look for opportunities

  32. Results can be achieved

  33. Things will not always go to plan

  34. Bridging expectations

  35. Questions

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