Transcript E-GP - EIPA

Multilateral Development
Bank
e-GP Harmonisation
João N. Veiga Malta
Electronic Government Procurement
Program Coordinator
Inter-American Development Bank
[email protected]
Contents

What is e-GP

Why is e-GP important?

Goals of MDBs

Why harmonise?

Journey

Results

Future Directions
2
What is e-GP

e-GP is the use of electronic information technology
(especially Internet) by governments in conducting their
procurement relationships with suppliers for the acquisition
of works, goods and consulting services required by the
public sector.

Management leadership and good Procurement Processes
rather than Technology is the key to a successful
sustainable implementation.

It is, however, important to differentiate between the holistic
approach of an e-GP solution and the more narrow approach
of a system.
3
What is e-GP

Solution Vs System

A “system” is usually associated with the technical side.


A “solution” takes into account other factors (the whole
procurement process, human resources, legislation,
organisations and management) needed to create an e-GP
vision solid enough to make it successful.
Simply applying IT to an inefficient procurement process
only increases the inefficiency and risks of the process.
4
Why is it important


Government as a driver/enabler for:

e-Commerce

Standards

Economic Growth
Building digital roads of the future – trade routs of the past
5
Goals of MDBs
e-GP
OBJECTIVES
GOVERNANCE
Transparency
Accountability
Integrity
Public Confidence
EFFECTIVENESS
Efficiency
Informed Management
Value-for-money
Quality Outcomes
ECONOMIC DEVELOPMENT
Business development
Competitiveness
Technological Enablement
Market Access
Capacity-building in e-GP targets three key donor objectives
for one third of government expenditures
6
e-GP Enhances Governance
 E-records → Stronger audit trails & capabilities
 Online processes → Civil oversight
 Online access → Business oversight
 Policies online → Transparency of process
 Contract awards online → Transparent results
e-GP is sometimes resisted by individual businesses for precisely these reasons
7
e-GP Efficiency Potential in LAC
 LAC GDP in 2002 approx. $ 2 Trillion (US)
 Government procurement > $ 200 Billion
 10% saving = $ 20 Billion
 20% saving = $ 40 Billion
 Public Health expenditure $ 100 Billion
 Public Education expenditure $ 76 Billion
e-GP generates price savings of 10%-30%
e-GP generates transaction cost savings of 25%-90%
e-GP generates outcome savings through reduced corruption
8
Government Procurement - Reality
Procurement
Average 15%
.
80% transactions < $500
GDP
9
Benefits of e-Procurement
(MARKETPLACE)
 Reduces price of goods & services





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Implementation stage 5% - 10%
Expected to stabilise at 10% - 30%
Reduces transaction costs 25% - 90%
Reduces cycle time to purchase
Strengthens fraud control
Strengthens policy compliance
Industry benefits
Increases in productivity – LAC Government driven
10
Systems Integration
Community
Business
Government Portal
Gov Payments
Asset Disposal
e-Procurement
Shared
Infrastructure
Financial Management System
11
e-GP Promotes e-Commerce

Domestic Trade

Regional Trade

Global trade

Underpinned by:

ICT adoption

Common international
standards (Authentication &
Codification)

Regional Cooperation
Global
Regional
Domestic
Trade
Trade
Trade
12
Inconsistent e-GP
methodologies
Common knowledge base
and lessons learnt
Inconsistent e-GP policies
Demand from client
countries
Country confusion
Duplicate work programs
Pooled planning &
resourcing
Scarce resources
dissipated
Integrated work programs
Disparate e-GP programs of
MDBs dissipate effectiveness
of capacity-building
Consistent advice, policies,
strategies, pooled resources - more
effectiveness in capacity building
Harmonised Programs
Independent Programs
Why Harmonise?
13
Development of e-GP Harmonisation
Initial
Processes
HOP
discussions
Initial MDB
discussions
Program
Development
Development of
joint policy areas
Development of
work program
Program
Execution
Release of E-GP
Introduction for
Executives
Program
Execution
Launch of shared
online facility
Policy Review
Process and
Policy
Development
Tel conf on
security and
audit
Joint MDB e-GP
International
Conference
Release of E-GP
Standards
Release of Self
Assessment tool
Tender threshold
policy review
Authentication
policy
development
E-GP Working
Party formed
Tel conf on
policy
development
THE FIRST
18
MONTHS
Release of E-GP
Strategic Planning
Launch of shared
online forum
Revision of e-GP
deployment factors
Review of MDB
vs client country
policies
Tel conf on
International
Conference
Launch of
Roadmap
Revision of reverse
auction policies
Strategic
Planning
2005
14
Scope
e-GP
Harmonisation
e-GP Working Party
Methodologies
Policies
Vision
Knowledge
Resources
Implementation
Strategies:
Efficiency in
Policy Guidance:
Enhanced Aid
Effectiveness:
Lessons Learnt:
Pooled Capacity:
HR Strategies
MDB Budgeting
Planning
Objectives
Institutional
Management
Business Plans
Tools & Materials
Standards
MDB Program
Planning
Legislation
Ownership
Country Program
Design
Costs
Timelines
Leadership
Solutions
Joint Materials
Infrastructure
Business, etc
Designs, etc
Joint MDB
Projects
Communication
Strategies, etc
Signatures, etc
Joint Policy
Development &
Research etc
15
Results & Activities
e-GP Roadmap
e-GP - A Guide to Strategic Planning
e-GP – Standards
Guides
&
Toolkits
Strategic e-GP – An Introduction for Executives
Shared online facility www.mdb-egp.org
Shared online forum
Online
Education
Revised & harmonised e-tendering rules
Consistent strategic planning guidance and review
Costings and e-GP development
In-Country
Advice
Business case models and pooled experiences
International e-GP Conference
e-GP Tutorials
Strong positive responses from client countries
Professional
Development
& Networking
All Developed or Delivered Jointly
e-GP - A Self Assessment Questionnaire
16
e-GP Toolkit – Documents
www.mdb-egp.org
e-GP
Strategic Overview
e-GP Strategic
Planning Guide
Requirements
Use of e-GP Tendering
e-GP Road Map
e-GP
Readiness Assessment
e-GP Authentication
e-GP Standards Framework
17
IDB
WB
Harmonisation
ADB
ADBG
NDF
18
WB
IDB
Harmonisation
ADB
EU
EBRD
19
Future Directions

Requirements for the use of country e-GP systems:



Tendering
Purchasing
Reverse Auctioning

Acceptance of country e-GP systems for MDB financed
operations

Buyer/Supplier activation Guide

Regional workshops - Key issues Authentication, Codification

Continued alignment with other international organisations
EU & UNCITRAL
20
Multilateral Development
Bank
You
e-GPThank
Harmonisation
João N. Veiga Malta
Electronic Government Procurement
Program Coordinator
Inter-American Development Bank
[email protected]