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TRANSPARENCY IN INFRASTRUCTURE PROCUREMENT IN ANGOLA
Why it Matters and How to Achieve it?
- 1. WHY IT MATTERS…
PROCUREMENT IN ANGOLA Why it Matters and How to Achieve it? 1. WHY - - PowerPoint PPT Presentation
PROCUREMENT IN ANGOLA Why it Matters and How to Achieve it? 1. WHY - - PowerPoint PPT Presentation
TRANSPARENCY IN INFRASTRUCTURE PROCUREMENT IN ANGOLA Why it Matters and How to Achieve it? 1. WHY IT MATTERS PUBLIC INVESTMENT INSTITUTIONS MATTER IMF has identified 15 institutions that are of vital importance to strengthen efficiency of
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PUBLIC INVESTMENT INSTITUTIONS MATTER
- IMF has identified 15 institutions that are of vital importance to
strengthen efficiency of public investment management
- #13: “Transparency of budget execution that ensures that
major investment projects are tendered in a competitive and transparent process, monitored during project implementation, and independently audited”
- PIM priorities for low-income developing countries:
“transparency of budget execution, openness of the procurement process, and efficiency of cash management are critical to the stability and predictability of investment and to reducing opportunities for rent seeking.”
- http://www.imf.org/external/np/pp/eng/2015/061115.pdf
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HUGE AMOUNTS INVESTED
- Immense challenge
reconstructing the country after the civil war
- Unparalleled resources
to lift the task (PIP per capita 2013: $579)
- Bang for their buck?
$4.24 $26.92 $36.26 2002-2005 2006-2009 2010-2013
Public Investment Spending USD bn (nominal)
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ROAD REHABILITATION
Until 2010 2011 2012 2013 2014 Total Primary 6,403 km 986 km 2,581 km 1,156 km 1,114 km 12,240 km Secondary
- 412 km
593 km 646 km 1,651 km Tertiary
- 539 km
776 km 703 km 2,018 km Bridges 286 8 5 7 32 338
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ROAD REHABILITATION CONT.
- Road budget 2014: $1.2bn
- Cost ?
- If “on budget”: $1.1m per
kilometre
500 1000 1500 2000 2500 3000 3500 4000 2014 2013
Planned vs completed km of roads 2013 - 2014
PND objective Achieved
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ROAD QUALITY
- 2011:
- 58% of primary & secondary roads in ‘good’ condition
- 40% of tertiary roads in ‘good’ condition
- 2015
- No data publically available
- Anecdotal evidence: general sense that quality is poor and that this is a
major constraint for economic diversification
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- 2. HOW TO ACHIEVE IT?
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THE UGLY, THE BAD AND THE GOOD
- The “ugly” sides of Angola are well known and documented
- Highly centralized power in the Presidency
- Extensive patronage networks
- High perceived levels of rent-seeking and corruption
- Corruption associated with higher levels of public investment
- The bad news
- Low levels of transparency overall
- Legal framework for procurement has room for improvement
- Unfortunately enforcement is very weak
- What are the good news?
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SOME INSTITUTIONAL STRENGTHENING
- Procurement office changed to the National Procurement
Service
- Transparency, publication of procurement statistics
- Oversight, including through compliance audits
- Training of procurement staff
- Debatable if this type of institutions can bring real change
- Further institutional strengthening is the only way forward
- The crisis creates very strong incentives to increase efficiency of public
investments
- Mid- to high-level management of public administration improving
- Senior level political change is coming to Angola…
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