The Place of Procurement in Infrastructural Development and its Sustainability - ONAFOWOTE F. IDOWU – AG. GM - PPA
LAGOS Lagos City-State as one of the fastest growing cities in the world Has a vision of becoming Africa’s Model Mega City and Global, Economic and Financial Hub that is Safe, Secure, Functional and Productive. To achieve this laudable objective, there is need to direct investment towards economic development of Lagos. Thus, LSDP serves as a veritable platform providing overall direction for the growth and development of the State. It will provide a framework through which all sectors of the economy can direct their energies and contribute to the improvement of the quality of life of people in the State.
Vision and Mission Statements – The Big Picture By 2025 Lagos will become Achieved by Africa's Model Megacity Poverty Eradication and and Global, Economic and Sustainable Economic Financial Hub that is Safe, Growth through Secure, Functional and Infrastructural Renewal and Productive Development
METROPOLITAN LAGOS
IBILE
VISION TO STRATEGY DEVELOPMENTAL PILLARS STRATEGIC DIRECTION Pillar 1: Economic Harnessing public and private investment to create a Development strong, mixed economy that can provide jobs for all and Aim: A dynamic, expanding create the base for expanding social services and economy, functional and visually environmental sustainability attractive Pillar 2: Infrastructure Providing efficient power, effective mass transit systems and Development other key infrastructures essential to achieve a sound and Aim: An efficient and effective growing economy and achieve social progress infrastructure capable of meeting future needs Pillar 3: Social Development Ensuring a dynamic, progressive social and economic and Security environment that will result in a well-educated, healthy Aim: An educated, skilled, healthy people able to fulfill their potential and meet the skill needs and secure people of new industries. Pillar 4:Sustainable Environment Creating sound systems, regulations and public Aim: A green, clean and live-able participation to maintain a healthy and sustainable city that can sustain its complex environment that can overcome the environmental deficit natural and man-made and meet future challenges posed by climate change. environment
INFRASTRUCTURE DEVELOPMENT PILLAR STRATEGIC DIRECTION Lagos State aims at achieving an efficient and effective infrastructure capable of meeting future needs, including increased productivity, competitiveness, environmental sustainability, reduced noise pollution, and income inequality as well as guarantee security and health.
STRATEGIC DIRECTION - CONTD By 2025 it will have delivered efficient power, effective mass transit systems and other key infrastructures essential to achieve a sound, growing economy and social progress. Today Lagos State suffers from inadequate and unreliable infrastructure and this has led to the high cost of doing business in the State, for example, the intractable traffic congestion in the Lagos Metropolis and the associated loss of productivity and valuable man hours.
PRIORITY AREAS / CURRENT STATUS The key priority areas in the Infrastructure Sector are power, transportation, and water. They are all, in their present form, deficient and cannot meet the immediate and future needs of the economy.
FINANCING INFRASTRUCTURE The financial demands of the Infrastructure Sector are far in excess of the State budget capacity. LASG will therefore seek innovative ways of engaging other stakeholders in bridging the gap. Options available to the State include developing strategic partnerships, increases in charges, improvements in revenue collection strategies, reduction in operating costs, rationalization of service levels and use of shared services and outsourcing among the service providers. One of the key strategies is developing strategic partnerships through PPPs.
WHY PUBLIC PROCUREMENT As a state with a development master plan, Lagos State collaborated with the World Bank in the year 2003 for a broad Public Sector Reform process to improve Efficiency, Accountability, Transparency and Probity in the conduct of Government Business and to align with International Best Practice. Consequently, the Lagos State Government enacted the Lagos State Public Procurement Law in October 21, 2011 and the Law became effective in April 2012.
Background Contd As part of the strategic plans to achieve the State Developmental Goals by Y2025, Lagos State Public Procurement Agency was established in February 2012 with a core mandate to certify all State procurements prior to, during and after the award of any contract Procurement Officers’ Cadre was created to carry out procurement functions in all the MDAs.
PUBLIC PROCUREMENT VISION: MISSION: To be a model regulator To ensure a transparent, assuring best practices in Competitive, Inclusive, Public Procurement Sustainable and Value for Money Public Procurement System that Supports the State’s Development Goals and Engender Public Confidence
CORE VALUES Professionalism Transparency Competitiveness Inclusiveness Value for Money
Background Contd PPA effectively took over the functions of the defunct State Tenders Board and State Consultancy Board in April 1 st 2014
Procurement Stakeholders NGOs/ CSOs/ Devt End -Users Partners, FG, Media Contractors/ Suppliers/ Procurement PE/ Procurement Office Consultants Stakeholders (Registered) Other Stakeholders e.g. CDA, LG Procurement Agency
Partnering 4 Development All the Stakeholders are important in the implementation of Short, Medium and Long Term Infrastructure Development Strategies to guarantee sustainability – Synergy is therefore very key
Procurement Definition General Definition Specific Definition Procurement in Lagos State Procurement refers to the Government entails sustainable acquisition and streamlining processes, getting disposal of goods, works and value for money in the services by public bodies/ acquisition of goods, works or organizations through an services in line with the efficient, professional, mandates of government for auditable and transparent the benefits of the governed in approach. the State.
Procurement Process The Procurement Process of acquiring Goods , Works and Services in Lagos State follows the BEST PRACTICE as detailed below; Procurement Tender Tender Tender Planning Documentation Notice Harvest Contract Contract Approval of Tender Implementation Signatures Contract Evaluation Procurement Cycle
Planning Needs Assessment Feasibility Studies Market Research Budgetary Allocation Community Participation Design specification/ Drawing etc.
Tender Documentation Preparation of Bidding Documents Seeking for necessary approvals Joint review of the Bidding Documents
Tender Notice Inviting the prospective bidders to participate in a bidding process Request for Quotation Invitation for Bid Request for Expression of Interest/ Proposals Note: Relevant Media
Tender Harvest Receipt of offers Designate an officer to handle the receipt of bids/ quotes/ proposal Composition of Bidding Opening Committee Preparation for Bids Submission Preparation of Bid Opening Composition of Bid Evaluation Committee
Tender Evaluation Sensitization of the Bids Evaluation Committee Declaration of Conflict of Interest Joint review of Pre-determined Evaluation Criteria Individual Evaluation of Bids Collation of Individual Evaluation of Bids Preparation of Evaluation Report
Approval for Contract Award Presentation of Evaluation Report to Tenders’ Board for concurrence Seeking relevant approvals e.g. PPA (if prior review) Types of PPA Approval Instruments 1. Certificate of Compliance 2. PPA No-Objection 3. Letter of Confirmation
Contract Formation & Signature Registration of Letter of Award Offer of Contract Award Acceptance of Offer Payment of statutory fees MDA Procurement Office liaise with the Legal Office on Contractual Documents Liaise with Ministry of Justice on contract agreement
Contract Implementation & Management Nomination of Project Manager Work plan (Contract Implementation Plan) Monitoring of Project Project Evaluation Contract Close Out
Complaints, Petitions & Disputes in Procurement Process • It is not out of place to have complaints and/ or petitions from any of the key players in the procurement process especially from aggrieved bidders who may not be satisfied with certain decision or action during any of the bidding process. • It is also not unlikely to have disputes between the Procuring Entity and the Contractor/ Supplier/ Service Provider during or after contract implementation. The complaint mechanism has been provided for the the Procurement Law
Why Contracts Fail Insufficient qualification of contractors Poor practices in qualifying contractors Lack of monitoring and remedial actions by Employer/Engineer/Procurement Officer Collection of Delay (Liquidated) Damages is deficient/non existent
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