Conference 2015 Innovation for Sustainable Procurement Performance - PowerPoint PPT Presentation

Third South Asia Regional Public Procurement Conference 2015 Innovation for Sustainable Procurement Performance Country Presentation: Bangladesh

Bangladesh Profile • 1971; ~ 144,000 sq-km; 7 Divisions  64 Districts  491 sub-districts (Upazilla)  68,000 villages • Annual national budget: ~ US$ 36.8 Billion • Annual Development Program: ~ US$ 12 Billion • Proc. expenditure: 21% of national budget • Per capita income now $1,190 • National Reserves now $27 billion • GDP growth in 2014-2015: 6.3 % • Adopted 7 th five-year plan with a GDP growth target of 8 % in 2020 • Moved to Middle income country 2

Background to Reform Country Portfolio Performance Review, 1998  Country Procurement Assessment Report, 2002  3

Country Procurement Assessment Report CPAR (1999-2002) Findings  Absence of legal framework  Complex bureaucratic procedure  Lack of adequate professional staff  Poor quality bidding documents  Ineffective administration of contracts Recommendations  Set up a Public Procurement Policy Unit  Issue Public Procurement Rules  Streamline Proc. Process & Financial Delegation  Develop Procurement Management Capacity  Publish Contract Awards  Introduce Appeal Procedures 4

Central Procurement Technical Unit Established in April 2002 Advice & assist PEs Amend Prepare & legislation distribute STDs CPTU Submit an Publish RESPONSIBILITIES procurement Annual Report ads to GoB Request/ Establish receive/evaluate e-GP System info from PEs 5

Legislatives Chronicles e-GP Guidelines 2011 PPR 2008 PPA 2006 PPR 2003 PPA 2006 GFR…, 2908 & 2911 6

Capacity Building & Institutionalization  National Trainers Pool  Three-week Procurement Training-7450  Short Procurement Training (18 different audiences)-14083  Master’s in Public Procurement (ITC -ILO)-25  MCIPS- 160, Master’s in Public Procurement and Supply Chain (BIGD, BracU)-135  Establishment of Procurement Faculty: Engineering Staff College Bangladesh (ESCB)  CIPS Study Centers: BIGD, BRACU & ESCB  Institutionalizing Short-training through Existing Public Training Institutes  BRACU: Conducting Masters Program on PP 7

Complaint Resolution Mechanism  Administrative Level  Review Panel Level  Review Panel Decisions 30 27 25 23 21 21 20 20 20 18 15 14 14 15 13 13 12 10 9 10 4 4 4 4 5 3 3 0 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 upto Sept In favour of PE In favour of Complainant 8

Civic Engagement in Procurement Monitoring Public Private Stakeholder Committee (PPSC)  Giving suggestions to the government in improving public procurement practices  Providing policy inputs for best utilization of public funds and delivery of services Third Party Monitoring (TPM) system • Monitoring at implementation part and gradually at the Process Part • Piloting Citizen engagement in 4 upazillas of 2 Districts • Group formation with all stakeholders • Advocacy Campaign to sensitize local people 9

BD Public Procurement Transforming From Paper based to IT based e-GP System Single uniform national web portal Centralized registration system Comprehensive system (e-Tendering + e-Contract Management) Integrated proc. performance monitoring (e-PMIS) Reg. Govt Users (98 Org.) - 8,747 Reg. Tenderer / Consultant - 17,246 Reg. Bank user (38 Banks) - 4,358 Total Reg. Users - 30,351 10

e-GP: Sustainability Revenue earning: US$ 6.9 M Revenue Earning Required Expenditure Probable Expenditure per year  US$ 1.43 M 11

Challenges For CPTU  Restructuring & Strengthening CPTU  Support to continue reform For e-GP  Continuous Improvement of the System  Establishment of New Data Center  Operation and Maintenance of e-GP after 2016  By CPTU?  Transformed into company?  Outsourced? 12

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Major Concerned Areas For e-GP Performance Manpower >11000 nos LGED Development Procuring Outlays : 1.5 Entities >700 B-US$ nos 14

Source of Risks in Manual Procurement Major Interaction in Manual Procurement : Procuring Entity Tenderer mostly in case of Challenge Procedure Head of the Procuring Entity Procurement Unit

Source of Risks in e-Procurement Complex Interaction in e-Procurement Tenderer Procuring Entity Registered Bank Internet Infrastructu re is inevitable Head of the Procuring Entity CPTU Procurement e-GP Tech. Unit Help cell Team Desk Help Desk 16

Concerned Areas To Be Addressed Adopting e-GP 1.T echnical risk 10. 2.Political Infrastruct risk ure risk 9. Financial 3. Human risk risk Associated Risks 8. 4. Social Communica risk tion risk 7. 5. Custom Motivatio risk nal risk 6. Leading risk 17

Primary Consideration for e-GP Implementation 1.Quantification of Procuring Entities 7.Implementation 2.Capacity of Policy of LGED Govt.Officials Primary Considerations 6.Operational 3.Capacities of difficulties in e- Tenderers GP software 4.Performance of 5.Internet Service Providing Connections Banks

Year Wise Evolution : On-line vs Off-line LGED’s Policy :Apart from the Project Target, from July 14, all tenders shall be invited through e - GP system unless there exists any reservation from donor aided projects. FY 2013-14 :On-line vs Off-line 42% On-line Off-line 58% FY 2014-15 :On-line vs Off-line 9% On-line Off-line 91% 19

Year Wise Implementation Target : e-GP and PROMIS Where do we need to reach? 20

Implementation Year Wise : Target vs Achievement Where are we now? e-GP - Target vs achievement as of 29-10- PROMIS- Target vs achievement as 29-10- 2015 2015 Ach Ach 7768 7768 8000 8000 6000 6000 Ach Ach 4834 4834 Targ Targ Targ 4000 4000 4000 4000 3600 Targ Targ Ach 3200 Ach Targ Targ 2724 2800 2724 Targ Targ 2400 Ach Ach 2000 Targ 2000 2000 1400 Ach Targ 554 Targ Ach 200 100 109 0 0 21

Sustainable Performance : Manual vs e-GP Efficiency: Time Spent for Tender Opening to Notification of Award Given Manual e-GP 41.91 33.6 32.05 Tender Opening to NOA in days 28.18 e-GP finds more efficient FY:2012-13 FY:2013-14 YEAR 22

Sustainable Performance : Manual vs e-GP Transparency: Publication Of Award Information Manual e-GP 100 100 Publication Of Award Information In % e-GP finds more transparent 56.24 27.94 FY:2012-13 FY:2013-14 YEAR 23

Sustainable Performance : e-GP Effectiveness : Selling Of Tender Documents And Participation 14 13.1 12 10.03 9.96 10 How many 8.49 tenderers buy Numbers 7.69 documents ? 8 6 4.7 How many tenderers participate in a tender? 4 1.97 1.38 2 0 FY:2012-13 FY:2013-14 FY:2014-15 FY:2015-16 YEAR Sale of Tender Proposal Document Tender Participation 24

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