Presentation By Egal N. Roble (Chief Officer, Procurement Reform)
Development Bank African The 1 Presentation By Egal N. Roble (Chief Officer, Procurement Reform)...
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Transcript of Development Bank African The 1 Presentation By Egal N. Roble (Chief Officer, Procurement Reform)...
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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