GOVERNMENT CONTRACT MANAGEMENT : A KEY INPUT TOWARDS ACHIEVING - - PowerPoint PPT Presentation

ENHANCED PARTNERSHIP IN GOVERNMENT CONTRACT MANAGEMENT : A KEY INPUT TOWARDS ACHIEVING VISION2020

Presentation by Kalihangabo Isabelle Permanente Secretary / Solicitor General

At the training for Legal advisers working for Private Companies

28th April 2016 at Hill T

• p Hotel

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Partnership: Public and Private Sectors

One of Rwanda’s vision 2020 pillars is to

be a country with a private sector led economy

 More efforts have been pulled together

to strengthen the Private sector so as to put it at the fore front (Drivers) of Rwanda’s economy.

 The Private sector is a great partner of

the Government in all its activities.

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Partnership: Public and Private Sectors cont’d…...

A huge part of Government activities and projects

are implemented through public procurement (Public Contracting) by which GoR outsources services, goods and works from the private sector.

 The Government is at the service of the citizens

and any poor or non execution of a government contract does not only affect the Government institution involved in the contract but also has serious repercussions

• n

the entire country’s population.

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Consequences of Poor contract management

In the financial year ending 30th June 2014,

the Auditor General reported that 126 billion were lost in 78 projects in 27 Institutions due to poor contract management.

This represents 8% of the National Budget for that

year and the projects were all aiming at the welfare

• f the People of Rwanda through providing them

with access roads, electricity, clean water, hospitals, schools and other necessary infrastructure.

In this case, public funds were spent yet the

intended results were not achieved

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Consequences of Poor contract management cont’d…….

A big number of cases in litigation involving the

Government and the private sector results from issues pertaining to contract management

 In one way or another, litigation leads both the

Government and Private companies to engage more resources in unnecessary manner

 Contract management should not be regarded

as a responsibility of the Government only. It is rather, a shared responsibility between both contracting Parties (GoR and the Successful bidder)

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Consequences of Poor contract management cont’d…….

Members

• f

the Private sector should understand that they are affected by poor contract execution in either way:

Firstly, they may end up suffering losses, Secondly, their business name is tarnished Thirdly, when the road is not constructed,

Electricity/power is not generated, hospital and schools not constructed, their absence affects the whole population including the members of the private sector and their relatives.

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Consequences of Poor contract management cont’d…….

It is a wrong perspective

to think that when public funds are spent without positive results, it is the Government that

• loses. It is important to always remember

that public funds are collected through taxes and other contributions from the people in order to implement projects of general interest. It should be understood that the main looser is the population.

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Advantages of Good contract management

 When

Government contracts are well managed the benefit goes to the Government , to the Company and most of all to the citizen.

 In Business perspective, a company gets more

profits when a contract is well executed and completed on time.

Due to the above, contract management should

be a priority to both the procuring entity and the company that has been awarded the tender.

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Advantages of Good contract management Cont’d………

 IN BRIEF, CONTRACT MANAGEMENT:

 Gives the opportunity to both parties to

achieve their targets and avoid losses

Avoids unnecessary Litigation Benefits the entire citizenry by providing them

with the needed infrastructure and services

 Promotes

the adequate use

• f

available resources

 Excellent execution of contracts has a great

impact in strengthening the Private Sector and is a sign of a sector that is trustworthy.

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Conclusion

 The aim of today’s workshop is to discuss with

the Private Sector and have a common understanding

• n the essence of contract

management and give it a priority

 Let each one of us understands the need in

adequate use of public resources mainly those that are spend through contracting

After this workshop, we wish the public and

Private sector to commit ourselves to the protection of public funds against unnecessary losses by laying down strategies for proper contract management

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Conclusion Cont’d…..

 With our combined effort, I believe the

next Auditor General’s report will be positive and show an excellent performance in contracts execution as well as Government projects implementation and those ongoing will be reported to be on the right track.

 Let us all strive to ensure that our

country maximizes the gain from the little resources it has to invest for the benefit

• f its people.

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THANK YOU !!!!!!!!!

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