Transcript Prior Review Threshold: PRTs

EAST AFRICA PROCUREMENT FORUM
NOVEMBER 14 – 16, 2011
Pascal Tegwa
Senior Procurement Specialist
Africa Region
The World Bank
7/20/2015
1
OUTLINE
The World Bank’s Africa Strategy
 Partnering for Africa’s Regional Integration
 Comprehensive Framework for Engagement
 Regional Lending Program – World Bank
 Africa Regional Strategy and Regional Integration
 Lessons Learned from Implementation of
Regional Projects
 Challenges Facing Implementation of Regional
Projects
 Points for Discussion

7/20/2015
2
The World Bank’s Africa Strategy

The strategy was issued in March 2011 after
widespread consultation – public sector, private
sector and CSOs (www.worldbank.org/africastrategy)
 It sets WB directions in support of Africa’s
transformation to sustain growth
 The Strategy has Two Pillars and One Foundation
 Pillars: (a) Competitiveness and Employments and
(b) vulnerability and Resilience
 Foundation: Governance and public sector capacity
 Regional Integration is one of the implementation
strategy
7/20/2015
3
Partnering for Africa’s Regional Integration
 African
Leaders and Citizens
increasingly Embracing Regional
Solutions to Accelerate Growth and
Tackle Development Challenges
7/20/2015
4
Comprehensive Framework for Engagement
Regional
Infrastructure
Development
7/20/2015
Institutional
Cooperation
for Economic
Integration
Coordinated
Interventions
to Provide
Regional
Public Goods
5
Regional Lending Program – World Bank





Grown by 75% from US$2.1 billion (March 2008) to
US$3.65 billion (March 2011)
Leveraged about US$1.0 billion of External cofinancing: EU, AfDB and other partners
78% Focused on Reducing “missing links” in
Regional Infrastructure Network
17% Management of Regional Public Goods
(Agriculture, Fisheries Environment and Health)
5% Institutional Cooperation for Economic Integration
(Financial Market Deepening and Regional Capacity
Building)
7/20/2015
6
Africa Regional Strategy and Regional Integration
Governance
• Underlying Arica’s many Development Problems >>
Challenge of Governance and Political Leadership
Restrictions
• Competitiveness Constrained By Restrictive Business
Regulations >> Difficult to Remove >> Vested Interests
• Infrastructure>>Impeded by Poor Public Investment
Choices>>Weak Budget Management>> Corrupt or Lethargic
Procurement Practices
Corruption
Poor
Outcomes
• Resulting in Poor Quality of Public Services
FOUNDATION: Governance and Public Sector Capacity
7/20/2015
7
Africa Regional Strategy and Regional Integration

The Governance Challenge in Africa is
Particularly Acute for Three Reasons:
Fragility: Large Number of Fragile States – 20 of
the World’s 33 Using the WB Definition of Fragile
and Conflict Affected States (FCS)
 Political Instability
 Corruption and Civil Conflicts

7/20/2015
8
Lessons Learned From Implementation of Regional Projects
• Involves High Level of Trust Between Countries
TRUST
• Effective Sequencing and Priority Setting
Sequence
Priority
Policy
Coordination
• Complementary Policy Reforms Needed to
Address Institutional and Administrative Barriers
• These Reforms and Investments Have to be
Implemented in a Coordinated Way. Harmonization of
Legal and Regulatory Standards – e.g. Axle Weights,
Customs, Trade Facilitation Measures etc.
7/20/2015
9
Lessons Learned From Implementation of Regional Projects
Complexity and Capacity Requirements  Challenging to Prepare
Scope of Regional Projects  to Match National and
Regional Capacities  Failure to Deal Adequately 
Major Bottleneck  Preparation and Implementation
Interactions Between National Institutions AND Effective
Coordination of National and Regional Level Activities
Require  Clear Delineation of Roles and Responsibilities
7/20/2015
10
Challenges Facing Implementation of
Regional Projects












Inadequate Planning and Bureaucracy in Planning:
Inadequate project definition
Poor cost estimates
Red tape – delays as a result of excessive rules and procedures
Inadequate project management skills
Lack of harmonized planning strategies among member states
Inadequate communication among member states
Unequal level of Political Commitments among Participating Countries:
Perceptions of participating member countries about levels of benefits from the
projects
Development priorities of participating countries as a result of differences in
economies
Financial commitments and constraints
Lack of trust between member countries
7/20/2015
11
Challenges Facing Implementation of
Regional Projects












Political Interference and Levels of Corruption:
Interests of politicians - some projects moved by the political agenda
Lack of transparency and accountability
Inordinate approval process by Parliament which results in delays in
effectiveness of new projects
Lack of democracy; weak leadership – causes conflicts and insecurity
Differences in Public Procurement Legal Framework:
Lack of harmonized public procurement legislations across member states
Lack of harmonized procedures and practices
Lack of harmonized trade laws and other laws which support procurement
function
Safeguarding local market to local private sector – fear of opening up to other
member states
Lack of compatibility of technical specifications
Lack of harmonized procurement policies and sanction procedures of
development partners
7/20/2015
12
Points For Discussion

Can we think of harmonizing EA public procurement
Laws? Local preference, debarment and sanction procedures, complaint
mechanism, bidding documents, etc.


Would this step encourage trade and private sector
participation across the border?
OR
Can we encourage EAC to enact a framework that
each member country could buy-in?
7/20/2015
13