Joao Veiga Malta, Senior Procurement Specialist, LCSPT Diomedes Berroa, Senior Operations Officer, LCSPT

Pedro Arizti, Public Sector Specialist, LCSPS

Washington DC, April 14, 2011

BUILDING PARTNERSHIP AND TRUST

FRAMEWORK CONTRACT FOR PETROL: HOW PANAMA SAVED USD20M?

LESSONS LEARNED

The Bank as trust partner? Value added?

Knowledge Honest broker International experience Lessons learned

◦ Inside and outside region

Thematic Team The right skills

CMU Procurement Financial Management PREM High level international experts

Reform is a Big challenge

A new paradigm

The Questions

What does the government perceive as the issues?

What are it’s objectives? What do other stakeholders think? How committed are they? Can we deliver? Do we have the resources?

Where do we start

Diagnostic tools Quick gains

◦ Identify opportunities E-Procurement Capacity building Framework agreements

◦ Which ones?◦ What model?

Preparing the groundwork

Transition

New administration◦ Reengagement◦ Maintain momentum during transition

Resources NLTA WPA

◦ Strategic plan – anchor

Bank◦ From transactions to result

More than one approach

Best fit◦ New government◦ New priorities?

Sustainable

Programmatic approach Bank strategy - CPS Analytical instruments: CPAR/ CFAA Lending operations: Investments and DPLs Knowledge sharing

NLTA Vs IDF WPA

Integral Public Sector reform approach

ON TIME

20 million saved in the purchase of Fuel◦ Approximately 50 percent of the fuel budget ◦ Previously 70 government agencies were

consuming 100 percent of the budget.◦ Now 280 agencies are covered, with a total

decline in consumption of 10 percent. Time to purchase common use goods down

from 56 days to less than 3 (once comptroller processed is reformed it will be further reduced)

Increased trust in government procurement

Impact on Bank projects

All projects replaced shopping through the use of government Framework Agreements◦ Increasing efficiency◦ Increased competition◦ Reducing opportunity for corruption

All business opportunities and results published in Panacompra

Nurture relationship

Decisions have implications

Partnership

Honesty

Stepping on toes

Expect challenges

Reform is a continual process

Look for opportunities

Results can be achieved

Things will not always go to plan

Bridging expectations

Questions