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Workshop on Implementing Electronic Government Procurement (e-GP) Delhi, India – May 18, 2006 The Role of e-GP in Improving Public Procurement Performance Knut Leipold The World Bank. Voice of the Pros. “ E-Procurement can protect life!” “You loose some USD 450,000 every day!”

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Workshop on ImplementingElectronic Government Procurement (e-GP)Delhi, India – May 18, 2006The Role of e-GP in ImprovingPublic Procurement PerformanceKnut LeipoldThe World Bank

Workshop on Implementing e-GP

slide2

Voice of the Pros

  • “E-Procurement can protect life!”
      • “You loose some USD 450,000 every day!”
  • “It allows for increased competition and less fraud.”

Workshop on Implementing e-GP

slide3

Voice of the Cons

        • “Look at this! Not only that we have to use
        • this E-Procurement system, we even have
        • to pay USD 12,000 for it this year!”
  • “We prefer the offline procurement process.”
  • “We don’t like the e-Procurement system as
  • it increases our workload.”

Workshop on Implementing e-GP

slide4

Objectives

  • Opportunities & Challenges of e for GP
  • e is a tool to improve GP
  • Encourage to use e for GP

Workshop on Implementing e-GP

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Agenda

  • Opportunities
  • Challenges
  • Lessons Learned

Workshop on Implementing e-GP

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Agenda

  • Opportunities
  • Challenges
  • Lessons Learned

Workshop on Implementing e-GP

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Benefits of e-GP

  • Transparency
  • Efficiency
  • Economic Development

Workshop on Implementing e-GP

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Transparency

  • Information on public procurement function
  • Information on procurement transactions
  • Compliance
  • Reduced corruption
  • Audit trails & institutional memory
  • Improved quality of public procurement
  • reporting, monitoring, and management

Workshop on Implementing e-GP

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Efficiency

  • Price decrease
    • Increased price transparency
    • Increased competition (!)
    • Aggregated demand
    • Lower transaction costs for suppliers
    • e-Reverse Auctions
  • Reduced transaction costs
    • staff, material, workflow
    • online vs. offline publication
          • Time is money!

Workshop on Implementing e-GP

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Economic Development

Public

Procurement

  • Government = single largest
  • purchaser in a national economy
  • Value of public procurement:
  • 10-15% of GDP
  • Redistribution of taxpayers’
  • money

GDP

  • Private business activation
  • Infrastructure development
  • Capacity building

Workshop on Implementing e-GP

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Government

Suppliers

Taxpayers

Beneficiaries of e-GP

  • Transparency
  • Efficiency
  • Economic Development

Workshop on Implementing e-GP

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What is the Problem?

  • Objectives of GP:
  • Open & fair competition
  • Efficiency
  • Transparency
  • Improved quality
  • Benefits of e-GP:
  • Open & fair competition
  • Efficiency
  • Transparency
  • Improved quality

E-GP does not replace GP. It is a tool that can improve and reform GP. The challenge is successful e-GP implementation, as it addresses far more than just HW & SW.

Workshop on Implementing e-GP

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Agenda

  • Opportunities
  • Challenges
  • Lessons Learned

Workshop on Implementing e-GP

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Manage-

ment

Manage-

ment

Under-

standing

Under-

standing

Policy

Policy

e-GP

Legis-

lation

Legis-

lation

Techno-

logy

Techno-

logy

Buyer &

Supplier

Activation

Buyer &

Supplier

Activation

Infra-

structure

Infra-

structure

Standards

Standards

e-GP Implementation

Government

Leadership

Workshop on Implementing e-GP

slide15

Manage-

ment

Under-

standing

Government

Leadership

Policy

e-GP

Legis-

lation

Techno-

logy

Buyer &

Supplier

Activation

Infra-

structure

Standards

Successful e-GP Adoption

  • Think Big, Start Small
  • Learn from Others
  • Assess the Current Situation
  • Develop a Strategy
  • Implement the Strategy

Workshop on Implementing e-GP

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Agenda

  • Opportunities
  • Challenges
  • Lessons Learned

Workshop on Implementing e-GP

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Lessons Learned: Dos (I)

  • Have a vision and strategy
  • Get a Champion on high political level
  • Get stakeholder buy-in
  • Develop appropriate legal framework
  • Establish a Lead Agency
  • Run an awareness raising campaign
  • Build capacity

Workshop on Implementing e-GP

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Lessons Learned: Dos (II)

  • Review procurement regulation and processes
  • Follow international standards
  • Phased implementation
  • Select a sustainable business model
  • Integration (link with other systems)
  • Strengthen international dialogue

Workshop on Implementing e-GP

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Lessons Learned: Don’ts

  • There is no reason to wait!
  • E-GP is far more than technology!
  • Don’t mix digital with electronic signature!
  • Don’t forget the private sector!
  • Don’t set unnecessary barriers to the use of e-GP!
  • E-GP does not solve all public procurement issues!
  • Decentralized public procurement does not require
  • decentralized e-GP systems

Workshop on Implementing e-GP

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For More Information

www.mdb-egp.org

Workshop on Implementing e-GP

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Thank You!

Kleipold@worldbank.org

Workshop on Implementing e-GP

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Back-up slides

Workshop on Implementing e-GP

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Time Savings

Source: Intenda Ltd., Pretoria, South Africa, 2003

Workshop on Implementing e-GP

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Fighting Corruption with e-GP (I)

  • Reducing fraud and corruption in public procurement:
    • online disclosure of procurement notices
    • online disclosure of awarded contracts
    • open and fair competition
    • increased compliance with procurement policy
    • less opportunity for corruptive, collusive, fraudulent, and
    • coercive practices
  • Potential for fraud and corruption:
    • inappropriate application of technology
    • e-Corruption

Workshop on Implementing e-GP

slide25

Fighting Corruption with e-GP (II)

  • E-Procurement can reduce opportunity of fraud and corruption in the context of government procurement if
    • driven by political will
    • implemented appropriately.
  • High level of transparency can be achieved at low costs and no need of major changes of the existing legal framework.

Workshop on Implementing e-GP