Financing For Development-From Billions to Trillions
The Role of Public Procurement in Mobilising Resources for Sustainable Development
ALECK MUNHAMO, PROCUREMENT OFFICER, AFRICAN UNION
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This presentation is in partial fulfilment of the Financing Foe Development course by the World Bank and addressed to Governments which are recipients of ODA
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Financing for Development is anchored on two main pillars
RESOURCE MOBILISATION
RESOURCE MANAGEMENT
PROCUREMENT
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• Critical aspect is the management aspect as it enables resource deficient countries to attract
both private and public finance
• Pivotal to this is the process of application of the funds- Procurement
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Resource Management in Public Sector demands accountability and transparencyProcurement plays an important fiduciary duty in public sector management
MDBs review procurement systems before granting loans
Investors need to have confidence in the country’s public expenditure systems, -is ODA or domestic resources spent in transparent manner??
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A Conducive environment for management of resources entails
Corruption Impedes Resources M
obilisation
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Good procurement is critical to ensuring effectiveness of development projects
A Substantial amount of ODA is spent on Procurement of Goods, Services and Works.
According to the AfDB, of the total contract amount awarded in 2011, US$296 million or 12.6% were for procurement of goods, US$1,861 million or 79.5% were for works and US$184 million or 7.9% for consulting services.
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Given The significant amounts of ODA spent through procurement, MDBs put emphasis on good governanceThe African Development Bank Group with other Multilateral Development Banks (MDBs), has been making continuous efforts to streamline the policy and procedures for procurement in order to improve the quality, efficiency and transparency of the procurement for its projects across the region (AfDB)
The Above was reiterated by Ngozi Okonjo-Iweala in her presentation on Improving the Investment Cimate
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Countries need to create an environment conducive for investment
• Make doing business easier
• Consistency and Predictability of policies
• Efficient tax administration systems
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Procurement as a conduit for Climate Financing
• Procurement and Carbon Financing
• Award more points for Company’s that finance Carbon
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Evaluation of Bids in Procurement should include sustainability,
• Initiatives to mitigate Climate Change
• Contribution to clean air
• Payment for carbon emissions
• Use of renewal clean energy
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CONCLUSIONODA Recipients need to create conducive environment for mobilisation of resources.
Need good management- Procurement as Tool for Accountability and Transparency
Use Sustainability criteria in evaluation to assist in management of Climate Change
New approach to development management is an all inclusive approach