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

• 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 7th five-year plan with a GDP growth target of 8 %

in 2020

• Moved to Middle income country

Bangladesh Profile

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

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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

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Central Procurement Technical Unit

Amend legislation Publish procurement ads

Establish e-GP System

Request/ receive/evaluate info from PEs Submit an Annual Report to GoB Prepare & distribute STDs Advice & assist PEs

CPTU

RESPONSIBILITIES

Established in April 2002

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

Legislatives Chronicles

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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

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Complaint Resolution Mechanism

 Administrative Level  Review Panel Level

5 10 15 20 25 30 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 upto Sept

3 4 3 9 13 15 14 20 23 27 21 4 4 4 13 12 14 21 10 18 20

In favour of PE In favour of Complainant

 Review Panel Decisions

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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

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

• f services

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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

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e-GP: Sustainability

Revenue earning: US$ 6.9 M Probable Expenditure per year  US$ 1.43 M

Revenue Earning Required Expenditure

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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?

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LGED

Manpower >11000 nos Procuring Entities >700 nos Development Outlays : 1.5 B-US$

Major Concerned Areas For e-GP Performance

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mostly in case of Challenge Procedure Tenderer Procuring Entity Head of the Procuring Entity Procurement Unit

Major Interaction in Manual Procurement :

Source of Risks in Manual Procurement

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

Complex Interaction in e-Procurement

Source of Risks in e-Procurement

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Concerned Areas To Be Addressed Adopting e-GP

Associated Risks 1.T echnical risk 2.Political risk

• 3. Human

risk

• 4. Social

risk

• 5. Custom

risk

• 6. Leading

risk 7. Motivatio nal risk 8. Communica tion risk

• 9. Financial

risk 10. Infrastruct ure risk

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Primary Consideration for e-GP Implementation

Primary Considerations

1.Quantification

• f Procuring

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

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.

Year Wise Evolution : On-line vs Off-line

58% 42%

FY 2013-14 :On-line vs Off-line

On-line Off-line 91% 9%

FY 2014-15 :On-line vs Off-line

On-line Off-line

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Year Wise Implementation Target : e-GP and PROMIS

Where do we need to reach? 20

Targ 100 Targ 1400 Targ 2400 Targ 3200 Targ 4000 Ach 109 Ach 4834 Ach 7768 Ach 2724 2000 4000 6000 8000

e-GP - Target vs achievement as of 29-10- 2015

Targ Ach

Implementation Year Wise : Target vs Achievement

Targ 200 Targ 2000 Targ 2800 Targ 3600 Targ 4000 Ach 554 Ach 4834 Ach 7768 Ach 2724 2000 4000 6000 8000

PROMIS- Target vs achievement as 29-10- 2015

Targ Ach

Where are we now? 21

41.91 33.6 32.05 28.18

FY:2012-13 FY:2013-14

Tender Opening to NOA in days

YEAR

Efficiency: Time Spent for Tender Opening to Notification of Award Given

Manual e-GP

Sustainable Performance : Manual vs e-GP

e-GP finds more efficient

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56.24 27.94 100 100

FY:2012-13 FY:2013-14

Publication Of Award Information In %

YEAR

Transparency: Publication Of Award Information

Manual e-GP

Sustainable Performance : Manual vs e-GP

e-GP finds more transparent

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1.97 7.69 13.1 10.03 1.38 4.7 9.96 8.49 2 4 6 8 10 12 14

FY:2012-13 FY:2013-14 FY:2014-15 FY:2015-16 Numbers YEAR

Effectiveness : Selling Of Tender Documents And Participation

Sale of Tender Proposal Document Tender Participation

Sustainable Performance : e-GP

How many tenderers buy documents ?

How many tenderers participate in a tender? 24

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