presentation by egal n. roble (chief officer, procurement reform)
DESCRIPTION
REGIONAL CONFERENCE ON EHNANCING INTEGRITY IN PUBLIC PROCUREMENT. Presentation By Egal N. Roble (Chief Officer, Procurement Reform) REGIONAL CONFERENCE ON EHNANCING INTEGRITY IN PUBLIC PROCUREMENT Venue: Rabat, MOROCCO Date: APRIL 3-4, 2008. Content. Introduction/Context - PowerPoint PPT PresentationTRANSCRIPT
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Presentation By
Egal N. Roble
(Chief Officer, Procurement Reform)
REGIONAL CONFERENCE ON EHNANCING INTEGRITY IN PUBLIC PROCUREMENT
Venue: Rabat, MOROCCO
Date: APRIL 3-4, 2008
REGIONAL CONFERENCE ON EHNANCING INTEGRITY IN PUBLIC PROCUREMENT
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• Introduction/Context
• Role of Borrower
• Role of Bank
• Before Award
• During Award
• After Award
• Anti-Corruption Strategy
• Redress Mechanism
• Integrity Measures
Content
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Works
Financed Operation Translates to:
• Project Loans
• Lines of Credit
• Investment Loans
Through Lending Instruments
Goods Services
• Structural Adjustment Loans
• Technical Assistance Grants
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• Total Amount approved in:• 2003: UA 179 million • 2004: UA 257 million • 2005: UA 114 million• 2006: UA 172 million• 2007: UA 174 million• Cumulative amount approved
over the last 5 years: UA 896 million
MOROCCO: Example
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• Pursuit of Economy and Efficiency
• Ensuring Equal Opportunity for all Eligible Bidders
• Encouragement of the Development and Participation of Regional Firms
• Transparency and Integrity in theProcurement Process
Context
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• Preparation of Bidding Documents and
• Prequalification Documents
• Prequalification Process
• Bid Evaluation
Role of the Borrower
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• Advertises and Issues Bidding Documents;
• Evaluates and Selects;• Awards, Signs and Administers
Contract;• Supervises Contract Execution• Processes Invoices for Payment
Bank required to approve or commenton each stage of the selection process
Role of the Borrower
PPRU/Procurement Unit
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• Negotiation, Award and Signing of Contracts
• Contract performance
• Consideration of Claims
• Settlement of Invoices
Role of the Borrower
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• The Bank is not Party to the Contract
• Preparation of Bidding Documents: Mandatory Use of Standard Bank Documents,
• Free Access to UNDB
• Bank’s “No objection” for Bidding Documents
Role of the Bank
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• Procurement Process Verified at Each Stage
• Bank’s “No objection” for Bid Evaluation Report Prior to the Award of Contracts
• Imposition of Sanctions relating toFraud and Corruption
Role of the Bank
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Issues in Procurement Planning
3. Types of Financing:3. Types of Financing:
•Parallel Financing or Joint Parallel Financing or Joint FinancingFinancing
1. Who is Procuring What?
2. Sources of Financing:• Government or Local Government or Local
Administration;Administration;• Bilateral Funding Bilateral Funding
Agency;Agency;• Multilateral Funding Multilateral Funding
Agency; Agency; • Several Sources of Several Sources of
Funding.Funding.
4. Procurement Rules to be Followed:
•Local Procedures;
•Procedures of Bilateral Sources;
•Procedures of Multilateral Sources;
•Procedures of the Major Financier;
•A Combination of Procedures.
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• Press Releases
• Appraisal Reports
• Quarterly Operational Summary (QOS) of Projects
• United Nations Development Business
• Bank's Web site: www.afdb.org
• ADB Business Bulletin
• Project Executing Agencies in Borrowing Countries
Before Award: Sources of Information on Bank Group-financed Projects
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Registration- DACON
A new on-line registration system is now available at the following address:
http://ext.afdb.org:8080/ADBDaconWeb/dacon/Home.htm
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Before Award• List of procurement itemsList of procurement items to be acquired under the to be acquired under the
project: Goods (equipment, vehicles, supplies, project: Goods (equipment, vehicles, supplies,
fertilizers, books), Works to be constructed or fertilizers, books), Works to be constructed or
rehabilitated; and Consultancy Services (technical rehabilitated; and Consultancy Services (technical
assistance, advisory, training, supervision) to be assistance, advisory, training, supervision) to be
acquired.acquired.
• Determine (APA) target datesDetermine (APA) target dates (inter-relationships) (inter-relationships)
within the overall project implementation within the overall project implementation
framework.framework.
• Decide on the content of procurement packagesDecide on the content of procurement packages;;
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Before Award: Bid Packaging
• Time Element: Time Element: items items are neededare needed at different times; at different times;
• Management Aspects: Management Aspects: one main contractor or EA;one main contractor or EA;
• Competitive Aspects Competitive Aspects (how to divide items into (how to divide items into
lots of optimum size to encourage maximum lots of optimum size to encourage maximum
competition);competition);
• Business Structure Business Structure (goods or services are not (goods or services are not
available from a single source);available from a single source);
• Administrative Costs of Tendering;Administrative Costs of Tendering;
• Point of View of Co-financing.Point of View of Co-financing.
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Before Award: Consultancy Services – Short-listing
Composition: Qualified Firms or Consortia
Requirements:• 5 to 7 firms;• Wide geographic distribution (not more than two firms from same country);• At least one firm from a regional member country; and • Consortium/joint venture of firms from member countries encouraged
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International Competitive Bidding• Advertisements: Publication of GPN in UNDB
Publication of SPN in UNDB
• Mandatory use of Standard Bidding Documents
• Bidding Documents to contain all contract conditions
• Minimum Bid Period - 60 days
• Clarifications on Bidding Documents
During Award
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International Competitive Bidding• Public Opening of Bids
• Evaluation Criteria Specified in Bidding Documents
• Evaluation undertaken based on these stated criteria
• Contract is awarded to Bidder with the "LOWEST EVALUATED COST BID"
During Award
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During Award: Evaluation of Consultants’ Proposals
3 Selection Procedures
1. Selection based on technical quality;
2. Selection based on technical quality with price consideration;
3. Selection based on establishing the comparability between technical proposals and selection of the
lowest offer
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Placing the Contract
• Bank reviews contractBank reviews contract• All main conditions examined All main conditions examined • No Objection neededNo Objection needed
• If obtained,contract may proceedIf obtained,contract may proceed
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After Award: Contract Management
• Vitally importantVitally important
• The Borrower is responsible.The Borrower is responsible.
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After Award: Contract Supervision
• ReportingReporting• Means by which the contract is Means by which the contract is
controlledcontrolled• Must include:Must include:
• Progress of workProgress of work• staff months spentstaff months spent• Money spentMoney spent
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• Borrower responsible to settle payments
• Payments upon Borrower’s request:
• Direct to beneficiary; or
• Letter of Credit; or
• Revolving Fund (Borrowers Pay)
Disbursement (payments) in contract currency
The Bank’s policy on arrears and Sanctions
After Award: Disbursement
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After Award: Contract completion-closeout
• Draft final reports to be reviewed and Draft final reports to be reviewed and approvedapproved
• Accounts closedAccounts closed• Demobilisation of consultants staffDemobilisation of consultants staff• Evaluation of consultants staffEvaluation of consultants staff
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• BID MANIPULATION/COLLUSION
• BRIBERY
• KICKBACKS
• MISREPRESENTATION
MOST COMMON CORRUPT PRACTICES
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• Bank’s policy: Borrowers and beneficiaries as well as bidders/ suppliers/ contractors/ consultants must observe highest standard of ethics during the procurement and execution of contracts under Bank financed projects, programs and studies.
• Bank’s policy: Borrowers to include standard provisions against corrupt and fraudulent practices.
• Standard Procurement Documentation of the Bank includes detailed Clauses on the matter.
Anti Corruption Strategy
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• Following its own investigation and determination in accordance with its procedures, the Bank will:
• Reject a proposal for award if it is determined that the bidder recommended has engaged in corrupt or fraudulent practices in competing for the contract;
• Cancel the portion of the loan or grant to contract if at any time it is determined that corrupt or fraudulent practices were engaged in by the Borrower or representatives;
• Declare a firm ineligible, either indefinitely or for a stated period of time , to be awarded a Bank financed contract if it at any time determines that the firm has engaged in corrupt or fraudulent practices in executing a Bank financed contract.
Anti Corruption Strategy
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• Where a firm has been found by a national or international entity to have engaged in corrupt or fraudulent practice, the Bank reserves the right to declare such a firm ineligible to be awarded a Bank financed contract.
• The Bank reserves the right to require that a provision be included requiring suppliers and contractors to permit the Bank to inspect their accounts and records.
Anti Corruption Strategy
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• Bank Does not finance Expenditure Not in line with Loan Agreement and Bank Rules
• Banks’ Policy to Cancel the Misprocured portion of the operation
• Bank will Cancel the Entire Loan if the Misprocured Portion is major
• Bank will Declare Misprocurement if contract Award was Based on Incomplete, Inaccurate or Misleading Information
Misprocurement
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Procurement Review Committee (PRC)
• Neutral and Independent
• Reviews receivable complaints
• Makes final decision on behalf of the Bank
Redress Mechanisms
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• Capacity building
• CPARs
• Party to all conventions: MDBs
• Strict Prevention and Punishment tools
• Transparency emphasised in all phases/Strict Review for Redress
• Institutional Integrity Division built in the OAGL
• Management – in all levels - Committed
• Staff/Board Code of Conduct
PRCOUREMENT INTEGRITY: MEASURES
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• Voluntary Disclosure Program
• Detailed Implementation Review
• Tighter Procedures for National Competitive bidding
• Rationalization of BEC Membership
• Information Sharing and Cross Debarement
• Protection of Whistleblowers
• Stricter Guidelines on Anti-Corruption and Sanctions
ADDITIONAL MEASURES
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THANK YOU