Presentation By Egal N. Roble (Chief Officer, Procurement Reform)

transcript

Development BankDevelopment BankAfricanAfricanTheThe

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

• Introduction/Context

• Role of Borrower

• Role of Bank

• Before Award

• During Award

• After Award

• Anti-Corruption Strategy

• Redress Mechanism

• Integrity Measures

Content

Financed Operation Translates to:

• Project Loans

• Lines of Credit

• Investment Loans

Through Lending Instruments

Goods Services

• Structural Adjustment Loans

• Technical Assistance Grants

• 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

• 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

• Preparation of Bidding Documents and

• Prequalification Documents

• Prequalification Process

• Bid Evaluation

Role of the Borrower

• 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

PPRU/Procurement Unit

• Negotiation, Award and Signing of Contracts

• Contract performance

• Consideration of Claims

• Settlement of Invoices

• 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

• 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

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.

• 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

Registration- DACON

A new on-line registration system is now available at the following address:

http://ext.afdb.org:8080/ADBDaconWeb/dacon/Home.htm

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;;

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.

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

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

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

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

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

After Award: Contract Management

• Vitally importantVitally important

• The Borrower is responsible.The Borrower is responsible.

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

• 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

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

• BID MANIPULATION/COLLUSION

• BRIBERY

• KICKBACKS

• MISREPRESENTATION

MOST COMMON CORRUPT PRACTICES

• 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

• 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.

• 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.

• 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

Procurement Review Committee (PRC)

• Neutral and Independent

• Reviews receivable complaints

• Makes final decision on behalf of the Bank

Redress Mechanisms

• 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

• 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

THANK YOU