PAN-COMMONWEALTH PUBLIC PROCUREMENT NETWORK CONFERENCE 28-30 Sep 2011

Sustainable Public Procurement (SPP) The Mauritian Experience

By S Tahalooa Balaclava, Mauritius

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Objectives of Public Procurement*

• Value for money in procurement of goods, works and services• Integrity – avoiding corruption and conflicts of interest• Accountability• Equal Opportunities and equal treatment for providers• Fair treatment for providers• Efficiency in the procurement process

* Sue Arrowsmith

Secondary Policies

• Harness Government Procurement power to support some policy goals that are not directly linked directly to the goods, works and services procured:o Industrial policieso Social policieso Environmental policies

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Industrial Policies

Procurement can be used to promote industrial development:

•Buy national (e.g Buy America Legislation)

•Price preference for domestic contents

•Strategic intervention: supporting industries in disadvantaged or declining regions, national security

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Social Policies

Supporting policies of a non-economic nature:•Promoting equal opportunities for those disadvantaged by gender or by ethnic group•Promoting fair labour standards by government contractors and their sub-contractors•Promoting employment opportunities for long-term unemployed persons

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Environmental Policies

• Using public procurement to support environmental objectives:

oAddress climate changeoPreserve bio-diversityoE.g Procurement of products with particular

environmental features like energy efficiency

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Sustainable Public Procurement*

• Sustainable Procurement is a process whereby organisations meet their needs for goods, services, works and utilities in a way that achieves “value for money on a whole life basis” in terms of generating benefits not only to the organisation, but also to society and the economy, whilst minimising damage to the environment

• UK SP Task Force and MTF SPP Task Force, 2006

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Implementing SPP in Mauritius

• The Prime Minister promoted a concept known as “Maurice Ile Durable” [Mauritius Sustainable Island]

• Through the National Policy framework of 2007 a policy framework for promoting Sustainable Consumption at national level has been devised

• In 2008 the Government requested UNEP for Mauritius to be a pilot country for SPP implementation and UNEP approved

• Procurement Policy Office selected as the National Focus Point for implementing SPP

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Strategic priorities of SCP programme framework

• Resources Use Efficiency with a Focus on Energy , Water and Sustainable Buildings and Construction

• Education and Communication for Sustainable Lifestyles

• Integrated Solid Waste management and Recycling

• Sustainable Public Service Practices*

• Increase Market Supply and Demand for Sustainable Products

* Sustainable Public Procurement falls under this priority

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SPP Marrakech Process10

Implementation Process

• Setting up of a steering committee under the chairmanship of the Director, PPO

• All major stakeholders involved

• Technical support of UNEP critical

• Hiring of consultants where required

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Status Assessment

• Status Assessment completed in 2009

• Assessment revealed that generally Mauritius does not consider sustainable criteria in public procurement

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Status Assessment

• Legal environment conducive for SPP implementation:

o A sound procurement systemo Mauritius has ratified most international conventions

related to environment, labour conditions, human righto Evaluation of suppliers based on price and non-price

factorso Contract management is carried outo Suppliers are engaged

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Market Readiness Analysis (TOR)

• Determine availability and market share of the targeted sustainable products /services

• Establish whether the targeted products are available in the local market

• Determine the number of SMEs and/or large enterprises involved in the fabrication or import of the targeted products

• Explore the prospects for in-country supply of new sustainable products and services

• Establish whether the goods and services are available in the international market and impacts of importation

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Market Readiness Analysis (TOR 2)

• Catalogue current instruments and tools available to certify and verify the sustainability of the products

• Assess national programmes, policies and/or instruments which currently exist to promote sus-tainable production in the targeted sectors

• Determine the extent to which companies in the targeted sector have environmental management systems and/or other sustainable development credentials in place; and finally

• Explore the prospects for development of the in-country market to supply the international market.

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Market Readiness Analysis-Methodology

• A three-stage approach was adopted so as to obtain the best results:

o Literature reviewoAnalysisoSurveys

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Market Readiness Analysis-Methodology (Stage 1)

• Discussions with PPO to clarify some aspects of the TORs

• Collection and preliminary analysis of procurement data for 2008 and 1st semester of 2009

• Examination of the national public procurement system• Discussions with a few stakeholders• An extensive review of literature on sustainable public

procurement.

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Market Readiness Analysis-Methodology (Stage 2)

Carrying out a prioritization study, based on UK‘s Sustainable Procurement Task Force Methodology to identify the largest, quickest and easiest sustainable procurement opportunities

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Market Readiness Analysis-Methodology (Stage 3)

Survey the market to evaluate the availability of targeted products and services in the priority areas, and the national conformity assessment infrastructure

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Market Readiness Analysis

Recommendations (Priority spend areas):• Buildings• Waste collection and disposal• Roads Construction• Wastewater Management • Food and Catering• Water Supply: Works and Maintenance• Energy: Plants and Equipment• IT Systems: Computers and Office Machinery • IT; Computerization and System maintenance• Paper and Printing

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Market Readiness Analysis

Quick wins:• IT SYSTEMS: COMPUTERS & OFFICE MA-CHINERY• IT: COMPUTERISATION & SYSTEMS AINTENANCE• FOOD AND CATERING; and PAPER and PRINTING

Pioneer:• CONSTRUCTION OF BUILDINGS

Challenging• Remaining five

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Policy Statement

The Policy Statement is an official commitment of Government of Mauritius to observe the principles of sustainability in the conduct of public procurement

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Action Plan 2011-2015

• A national and an international consultant with the support of PPO has developed the SPP Strategy and Action Plan

• A phased approach recommended

• Quick wins: Paper, vehicles and ICT

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Procurement of Vehicles using sustainable criteria

• Objectives: purchase vehicles that are fuel efficient and emit less CO2

• Methodology: o Setting a minimum level of CO2 emission o Applying LCC (Acquisition costs, operating

costs and Residual value)

• Wide consultation with key stakeholders

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Challenges

• LCC concept not fully conversant

• Perception that SPP is completely different from traditional procurement

• Difficult to estimate the price after useful life of the vehicles

• Fear of high price of vehicles

• Fear that bidders not making offer

• Non availability of data for CO2 emission

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Lessons Learned

• To carry out pilot test with a minimum quantity and where availability of the item is not critical

• Awareness to key stakeholders critical

• Any new concept (e.g LCC) clearly explained to key stakeholders

• Such initiatives should be undertaken: Lessons learned are optimal

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Future of SPP

• Strategic importance of Procurement

• Concern for environment protection increasing

• Concern for social factors

• Increasingly government pursuing its policies through Public Procurement

• Best practices and tools emerging in SPP

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Thank You

stahalooa@mail.gov.mu

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