The Potential of new Technologies & The Potential of new Technologies & Capacity-development approach for the Capacity-development approach for the

professionalization of the practice of Public professionalization of the practice of Public Procurement in AfricaProcurement in Africa..

Presentation byPresentation byGeorge Jadoun – ITC-ILOGeorge Jadoun – ITC-ILO

forforThe High Level Forum on The High Level Forum on

Public Procurement Reform in AfricaPublic Procurement Reform in Africa

Tunis, 16-17 November 2009Tunis, 16-17 November 2009

22

ContextContext

Public Procurement Reforms in Africa have been the Public Procurement Reforms in Africa have been the

focus of attention for the last two decades.focus of attention for the last two decades.

The initiatives undertaken by the African The initiatives undertaken by the African

governments (and regional economic integration governments (and regional economic integration

bodies) were supported by a favourable bodies) were supported by a favourable

international climate created by the Paris international climate created by the Paris

Declaration on Aid Effectiveness and have resulted in Declaration on Aid Effectiveness and have resulted in

tangible improvements to one or more pillars of the tangible improvements to one or more pillars of the

national public procurement systems in a number of national public procurement systems in a number of

countries across the African continent.countries across the African continent.

33

Essential Pillars of a Modern Public Essential Pillars of a Modern Public Procurement SystemProcurement System

OECD/DAC in collaboration with key development OECD/DAC in collaboration with key development partners managed to endorse a “landmark” document partners managed to endorse a “landmark” document describing the attributes of a well-functioning Public describing the attributes of a well-functioning Public Procurement system along 4 pillars as follows:Procurement system along 4 pillars as follows:

PILLAR 1PILLAR 1: : Legislative and Regulatory frameworks (laws, regulations, Legislative and Regulatory frameworks (laws, regulations, model bidding documents , conditions of contracts, model bidding documents , conditions of contracts, bidders’ review /complaints procedures)bidders’ review /complaints procedures)

PILLAR 2PILLAR 2::Institutional framework and Management Institutional framework and Management Capacity Capacity (Integration with Financial Management, Annual (Integration with Financial Management, Annual Procurement Planning, Central regulatory bodies, Procurement Planning, Central regulatory bodies, Procurement statistics, training, quality control)Procurement statistics, training, quality control)

44

Essential Pillars of a Modern Public Essential Pillars of a Modern Public Procurement SystemProcurement System

(continued)(continued)

PILLAR 3:PILLAR 3:Procurement Operations and Market Practices (capable Procurement Operations and Market Practices (capable staff, records, delegation, dialogue with private sector, staff, records, delegation, dialogue with private sector, commercial banking system, contract administration, ADR)commercial banking system, contract administration, ADR)

PILLAR 4PILLAR 4::Integrity and Transparency of PP system (internal control Integrity and Transparency of PP system (internal control and audit, bid challenge procedures, anti-corruption and audit, bid challenge procedures, anti-corruption measures, corruption watchdogs, codes of ethics).measures, corruption watchdogs, codes of ethics).

55

Current Progress of the Current Progress of the Procurement Reform ProcessProcurement Reform Process

Substantial progress has been achieved in putting into Substantial progress has been achieved in putting into place adequate legal and regulatory instruments that place adequate legal and regulatory instruments that are in line with the principles enshrined in OECD Pillar I.are in line with the principles enshrined in OECD Pillar I.

However in the rush to comply with international norms, However in the rush to comply with international norms, significant issues were overlooked:significant issues were overlooked:

Proper analysis of implications for national development, Proper analysis of implications for national development, pro-poor and sustainability considerations pro-poor and sustainability considerations

Capacity of the public and private operators to deliver in Capacity of the public and private operators to deliver in the new setting.the new setting.

Parallel work on strengthening internal control systems Parallel work on strengthening internal control systems and pro-active and consistent enforcement of the new and pro-active and consistent enforcement of the new legal provisions.legal provisions.

66

Current Progress of the Procurement Current Progress of the Procurement Reform ProcessReform Process

(continued)(continued)

Progress in complying with the requirements of Pillars 2, 3 Progress in complying with the requirements of Pillars 2, 3 and 4 needs long-term commitment and regrettably the and 4 needs long-term commitment and regrettably the improvements in these 3 pillars are too slow and have been improvements in these 3 pillars are too slow and have been below the threshold of expectations of many observers and below the threshold of expectations of many observers and concerned parties.concerned parties.

77

Current Progress of the Procurement Current Progress of the Procurement Reform ProcessReform Process

(Continued)(Continued)

In short, an adequate legal framework is essential In short, an adequate legal framework is essential but will not do much to improve effectiveness but will not do much to improve effectiveness unless sustained effort is invested to upgrade the unless sustained effort is invested to upgrade the attributes of a Public Procurement system as attributes of a Public Procurement system as stipulated under Pillars II, III, IV.stipulated under Pillars II, III, IV.

88

Current Progress of the Procurement Current Progress of the Procurement Reform ProcessReform Process

(Continued)(Continued)

Recent research and experience indicate that adequate Recent research and experience indicate that adequate management systems and competent staff (i.e. efficient management systems and competent staff (i.e. efficient institutions) are the engine of economic and social institutions) are the engine of economic and social development to an extent far exceeding the impact of laws development to an extent far exceeding the impact of laws and regulations.and regulations.

Therefore competent Human Resources and long-term Therefore competent Human Resources and long-term Capacity-development effort of the public and private Capacity-development effort of the public and private sectors , the subject of my presentation, are central to the sectors , the subject of my presentation, are central to the effectiveness of the reform (especially Pillars 2,3 and 4) as effectiveness of the reform (especially Pillars 2,3 and 4) as well as a pre-requisite for the realisation of its benefits.well as a pre-requisite for the realisation of its benefits.

99

Capacity Development in the Capacity Development in the Procurement FunctionProcurement Function

The overall objective of capacity development in the The overall objective of capacity development in the procurement function is to improve system effectiveness procurement function is to improve system effectiveness and enhance accountability of the contracting authorities and enhance accountability of the contracting authorities and their staff.and their staff.

1010

Capacity Development in the Capacity Development in the Procurement FunctionProcurement Function

(continued)(continued)

HRD Actions are foreseen at three levels:HRD Actions are foreseen at three levels: Level 1: Level 1:

Correct Application of Laws/RegulationsCorrect Application of Laws/Regulations

Level 2:Level 2:

Procurement Business process know-how for Procurement Business process know-how for managers managers and practitioners of procurement activities and practitioners of procurement activities (includes (includes Training on Procurement Audit and Internal Training on Procurement Audit and Internal control control processes).processes).

Level 3:Level 3:

Training of Economic Operators on “how to compete” for Training of Economic Operators on “how to compete” for government procurement opportunities.government procurement opportunities.

1111

Contents of the proposed Contents of the proposed training Modulestraining Modules

Level 1. Level 1.

Legal and Procedural Procurement Training Legal and Procedural Procurement Training (Procurement law/regulations, procurement oversight (Procurement law/regulations, procurement oversight and audit systems, bid challenge procedures) to be and audit systems, bid challenge procedures) to be adapted for each country’s specifity. adapted for each country’s specifity.

Level 2 a.Level 2 a.

Procurement Management Training Modules for Procurement Management Training Modules for practitioners in 4 sets covering Goods / Works/practitioners in 4 sets covering Goods / Works/Physical Services & Intellectual Services.Physical Services & Intellectual Services.Module IModule I: Definition of Procurement Requirements : Definition of Procurement Requirements and Procurement Planning, market research, and Procurement Planning, market research, performance/technical specifications, social and performance/technical specifications, social and environmental considerations.environmental considerations.

1212

Contents of the proposed Contents of the proposed Training ModulesTraining Modules

(cont’d)(cont’d)

Module 2Module 2: The Bidding Phase based on simplified Model : The Bidding Phase based on simplified Model Bidding Documents (rules of the competition, proportionate Bidding Documents (rules of the competition, proportionate evaluation criteria, Incoterms, pricing, e-tendering, etc.)evaluation criteria, Incoterms, pricing, e-tendering, etc.)

Module 3Module 3: Contract Management (contract management : Contract Management (contract management plan, quality assurance, change management, theory of plan, quality assurance, change management, theory of pricing of claims, ADR, warranty and maintenance pricing of claims, ADR, warranty and maintenance obligationsobligations).).

1313

Contents of the proposed Contents of the proposed Training ModulesTraining Modules

(cont’d)(cont’d)Level 2 b.:Level 2 b.:

Module Training set for Procurement Managers and Module Training set for Procurement Managers and Procurement AuditorsProcurement Auditors

Economics of Public ProcurementEconomics of Public Procurement Annual Procurement PlanningAnnual Procurement Planning Procurement Business Process in traditional and e-Procurement Business Process in traditional and e-

procurement modalities and design of Internal Control procurement modalities and design of Internal Control systemssystems

Risk Management including systems for prevention and Risk Management including systems for prevention and detection of fraud and corruptiondetection of fraud and corruption

Sampling for control and Audit PurposesSampling for control and Audit Purposes Performance benchmarkingPerformance benchmarking

1414

Contents of the proposed Contents of the proposed Training ModulesTraining Modules

(cont’d)(cont’d)

Level 3.Level 3.

A Module on “how to compete effectively” in government A Module on “how to compete effectively” in government procurement opportunities dedicated for building the procurement opportunities dedicated for building the capacity of capacity of economic operators in the economic operators in the private sector private sector (tracking business opportunities, pricing of bids, fulfilment (tracking business opportunities, pricing of bids, fulfilment of administrative and procedural requirements, bid of administrative and procedural requirements, bid challenge procedures, integrity.)challenge procedures, integrity.)

1515

Key Features of the Proposed Capacity Key Features of the Proposed Capacity Development ApproachDevelopment Approach

1.1. Development of competency-based training modules Development of competency-based training modules (“how to” guidance) covering all the competencies (“how to” guidance) covering all the competencies needed for execution and oversight of the procurement needed for execution and oversight of the procurement cycle.cycle.

2.2. Definition of a competency baseline for each category of Definition of a competency baseline for each category of public procurement staff (goods/works/services).public procurement staff (goods/works/services).

3.3. Training Modules with state-of-the-art technological Training Modules with state-of-the-art technological features supplemented by short video lectures on each features supplemented by short video lectures on each topic (also available with CD-ROM).topic (also available with CD-ROM).

4.4. Training Modules are available for free use in on –line Training Modules are available for free use in on –line self-learning as well as in formal Face-to-Face Training self-learning as well as in formal Face-to-Face Training sessions organized by National/Regional Training sessions organized by National/Regional Training Institutions. Institutions.

1616

Key Features of the Proposed Capacity Key Features of the Proposed Capacity Development ApproachDevelopment Approach

(cont’d)(cont’d)

5.5. Organisation of TOT programmes on the use of these Organisation of TOT programmes on the use of these Training Modules in blended Learning Training Modules in blended Learning (Distance (Distance plus plus Face-to-Face sessions).Face-to-Face sessions).

6.6. Competency-based Training Package that is easily Competency-based Training Package that is easily adapted for independent testing and certification by a adapted for independent testing and certification by a designated professional body if so desired at national or designated professional body if so desired at national or regional levels in order to facilitate enforcement of strict regional levels in order to facilitate enforcement of strict accountability standards for procurement as a recognized accountability standards for procurement as a recognized profession across the Continent.profession across the Continent.

7.7. Creation of E-forums for exchange of cross-country Creation of E-forums for exchange of cross-country experiences and establishment of “communities of experiences and establishment of “communities of practice”.practice”.

8.8. Establishment of National Buyers Associations and Establishment of National Buyers Associations and development of codes of conduct for buyers and sellers. development of codes of conduct for buyers and sellers.

1717

The capacity-development approach in this presentation The capacity-development approach in this presentation has been successfully pursued by the International has been successfully pursued by the International Training Centre of the ILO in Turin (ITC-ILO) in similar Training Centre of the ILO in Turin (ITC-ILO) in similar assignments for:assignments for:

1.1. Central and Eastern Europe (1992-2000) in collaboration Central and Eastern Europe (1992-2000) in collaboration with OECD/SIGMAwith OECD/SIGMA

2.2. World Bank Borrowers at national and inter-regional World Bank Borrowers at national and inter-regional levels since 1990levels since 1990

1818

ITC-ILO will be pleased to work with you for ITC-ILO will be pleased to work with you for operationalisation of this approach in the interest of operationalisation of this approach in the interest of consolidation of current procurement reform effort in the consolidation of current procurement reform effort in the AFRICAN Continent.AFRICAN Continent.

1919

THANK YOUTHANK YOU