Transcript The African Development Bank REGIONAL CONFERENCE ON EHNANCING INTEGRITY IN PUBLIC PROCUREMENT Presentation By Egal N.

The
African
Development Bank
REGIONAL CONFERENCE ON EHNANCING
INTEGRITY IN PUBLIC PROCUREMENT
Presentation By
Egal N. Roble
(Chief Officer, Procurement Reform)
REGIONAL CONFERENCE ON EHNANCING
INTEGRITY IN PUBLIC PROCUREMENT
Venue: Rabat, MOROCCO
Date: APRIL 3-4, 2008
1
The
African
Development Bank
Content
• Introduction/Context
• Role of Borrower
• Role of Bank
• Before Award
• During Award
• After Award
• Anti-Corruption Strategy
• Redress Mechanism
• Integrity Measures
2
The
African
Development Bank
Financed Operation Translates to:
Works
Goods
Services
Through Lending Instruments
• Project Loans
• Lines of Credit
• Investment Loans
3
• Structural
Adjustment Loans
• Technical
Assistance Grants
The
African
Development Bank
MOROCCO: Example
•
•
•
•
•
•
•
4
Total Amount approved in:
2003: UA 179 million
2004: UA 257 million
2005: UA 114 million
2006: UA 172 million
2007: UA 174 million
Cumulative amount approved
over the last 5 years: UA 896
million
The
African
Development Bank
Context
• Pursuit of Economy and Efficiency
• Ensuring Equal Opportunity for all Eligible
Bidders
• Encouragement of the Development and
Participation of Regional Firms
• Transparency and Integrity in the
Procurement Process
5
The
African
Development Bank
Role of the Borrower
• Preparation of
Bidding Documents
and
• Prequalification
Documents
• Prequalification
Process
• Bid Evaluation
6
The
African
Development Bank
Role of the Borrower
• Advertises and Issues Bidding
Documents;
• Evaluates and Selects;
• Awards, Signs and Administers
Contract;
• Supervises Contract Execution
• Processes Invoices for Payment
Bank required to approve or comment
on each stage of the selection process
7PPRU/Procurement Unit
The
African
Development Bank
Role of the Borrower
• Negotiation, Award and
Signing of Contracts
• Contract performance
• Consideration of Claims
• Settlement of Invoices
8
The
African
Development Bank
Role of the Bank
• The Bank is not Party to the
Contract
• Preparation of Bidding Documents:
Mandatory Use of Standard Bank
Documents,
• Free Access to UNDB
• Bank’s “No objection” for Bidding
Documents
9
The
African
Development Bank
Role of the Bank
• Procurement Process Verified at
Each Stage
• Bank’s “No objection” for Bid
Evaluation Report Prior to the
Award of Contracts
• Imposition of Sanctions relating to
Fraud and Corruption
10
The
African
Development Bank
Issues in Procurement Planning
3. Types of Financing:
1. Who is Procuring
What?
2. Sources of Financing:
•
•
•
•
11
Government or Local
Administration;
Bilateral Funding
Agency;
Multilateral Funding
Agency;
Several Sources of
Funding.
•Parallel Financing or Joint
Financing
4. Procurement Rules to be
Followed:
•Local Procedures;
•Procedures of Bilateral Sources;
•Procedures of Multilateral Sources;
•Procedures of the Major Financier;
•A Combination of Procedures.
The
African
Development Bank
Before Award: Sources of Information on
Bank Group-financed Projects
• Press Releases
• Appraisal Reports
• Quarterly Operational Summary
(QOS) of Projects
• United Nations Development Business
• Bank's Web site: www.afdb.org
• ADB Business Bulletin
• Project Executing Agencies in
Borrowing Countries
12
The
African
Development Bank
Registration- DACON
A new on-line registration system is now
available at the following address:
http://ext.afdb.org:8080/ADBDaconWeb/d
acon/Home.htm
13
The
African
Development Bank
Before Award
• List of procurement items to be acquired under the
project: Goods (equipment, vehicles, supplies,
fertilizers, books), Works to be constructed or
rehabilitated; and Consultancy Services (technical
assistance, advisory, training, supervision) to be
acquired.
• Determine (APA) target dates (inter-relationships)
within the overall project implementation
framework.
• Decide on the content of procurement packages;
14
The
African
Development Bank
Before Award: Bid Packaging
• Time Element:
items are needed at
different times;
• Management Aspects:
one main
contractor or EA;
• Competitive Aspects
(how to divide items
into lots of optimum size to encourage
maximum competition);
• Business Structure
(goods or services are
not available from a single source);
• Administrative Costs of Tendering;
15
• Point of View of Co-financing.
The
African
Development Bank
Before Award:
Short-listing
Consultancy Services –
Composition: Qualified Firms or Consortia
Requirements:
•
5 to 7 firms;
•
Wide geographic distribution (not more
than two firms from same country);
•
At least one firm from a regional member
country; and
•
Consortium/joint venture of firms from
member countries encouraged
16
The
African
Development Bank
During Award
International Competitive Bidding
• Advertisements: Publication of GPN in UNDB
Publication of SPN in UNDB
• Mandatory use of Standard Bidding Documents
• Bidding Documents to contain all contract conditions
• Minimum Bid Period - 60 days
• Clarifications on Bidding Documents
17
The
African
Development Bank
During Award
International Competitive Bidding
• Public Opening of Bids
• Evaluation Criteria Specified in Bidding Documents
• Evaluation undertaken based on these stated criteria
• Contract is awarded to Bidder with the "LOWEST
EVALUATED COST BID"
18
The
African
Development Bank
During Award: Evaluation of
Consultants’ Proposals
3 Selection Procedures
1. Selection based on technical quality;
2. Selection based on technical quality
with price consideration;
3. Selection based on establishing the
comparability between technical
proposals and selection of the
lowest offer
19
The
African
Development Bank
Placing the Contract
• Bank reviews contract
• All main conditions examined
• No Objection needed
• If obtained,contract may proceed
20
The
African
Development Bank
After Award: Contract Management
• Vitally important
• The Borrower is responsible.
21
The
African
Development Bank
After Award: Contract Supervision
• Reporting
• Means by which the contract is
controlled
• Must include:
• Progress of work
• staff months spent
• Money spent
22
The
African
Development Bank
After Award: Disbursement
• Borrower responsible to settle payments
• Payments upon Borrower’s request:
• Direct to beneficiary; or
• Letter of Credit; or
• Revolving Fund (Borrowers Pay)
Disbursement (payments) in contract currency
The Bank’s policy on arrears and Sanctions
23
The
African
Development Bank
After Award: Contract completioncloseout
• Draft final reports to be reviewed and
approved
• Accounts closed
• Demobilisation of consultants staff
• Evaluation of consultants staff
24
The
African
Development Bank
MOST COMMON CORRUPT PRACTICES
• BID MANIPULATION/COLLUSION
• BRIBERY
• KICKBACKS
• MISREPRESENTATION
25
The
African
Development Bank
Anti Corruption Strategy
• Bank’s policy: Borrowers and beneficiaries as well as
bidders/ suppliers/ contractors/ consultants must observe
highest standard of ethics during the procurement and
execution of contracts under Bank financed projects,
programs and studies.
• Bank’s policy: Borrowers to include standard provisions
against corrupt and fraudulent practices.
• Standard Procurement Documentation of the Bank includes
detailed Clauses on the matter.
26
The
African
Development Bank
Anti Corruption Strategy
• Following its own investigation and determination in
accordance with its procedures, the Bank will:
• Reject a proposal for award if it is determined that the
bidder recommended has engaged in corrupt or
fraudulent practices in competing for the contract;
• Cancel the portion of the loan or grant to contract if at
any time it is determined that corrupt or fraudulent
practices were engaged in by the Borrower or
representatives;
27
• Declare a firm ineligible, either indefinitely or for a
stated period of time , to be awarded a Bank financed
contract if it at any time determines that the firm has
engaged in corrupt or fraudulent practices in executing
a Bank financed contract.
The
African
Development Bank
Anti Corruption Strategy
• Where a firm has been found by a national or international
entity to have engaged in corrupt or fraudulent practice,
the Bank reserves the right to declare such a firm
ineligible to be awarded a Bank financed contract.
• The Bank reserves the right to require that a provision be
included requiring suppliers and contractors to permit the
Bank to inspect their accounts and records.
28
The
African
Development Bank
Misprocurement
• Bank Does not finance Expenditure Not in
line with Loan Agreement and Bank Rules
• Banks’ Policy to Cancel the Misprocured
portion of the operation
• Bank will Cancel the Entire Loan if the
Misprocured Portion is major
• Bank will Declare Misprocurement if
contract Award was Based on Incomplete,
Inaccurate or Misleading Information
29
The
African
Development Bank
Redress Mechanisms
Procurement Review Committee (PRC)
• Neutral and Independent
• Reviews receivable complaints
• Makes final decision on behalf of the Bank
30
The
African
Development Bank
PRCOUREMENT INTEGRITY: MEASURES
• Capacity building
• CPARs
• Party to all conventions: MDBs
• Strict Prevention and Punishment tools
• Transparency emphasised in all phases/Strict Review for Redress
• Institutional Integrity Division built in the OAGL
• Management – in all levels - Committed
• Staff/Board Code of Conduct
31
The
African
Development Bank
ADDITIONAL MEASURES
• Voluntary Disclosure Program
• Detailed Implementation Review
• Tighter Procedures for National Competitive bidding
• Rationalization of BEC Membership
• Information Sharing and Cross Debarement
• Protection of Whistleblowers
• Stricter Guidelines on Anti-Corruption and Sanctions
32
The
African
Development Bank
THANK YOU
33