presentation by egal n. roble (chief officer, procurement reform)

Development BankDevelopment BankAfricanAfricanTheThe

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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

REGIONAL CONFERENCE ON EHNANCING INTEGRITY IN PUBLIC PROCUREMENT


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• Introduction/Context

• Role of Borrower

• Role of Bank

• Before Award

• During Award

• After Award

• Anti-Corruption Strategy

• Redress Mechanism

• Integrity Measures

Content


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Works

Financed Operation Translates to:

• Project Loans

• Lines of Credit

• Investment Loans

Through Lending Instruments

Goods Services

• Structural Adjustment Loans

• Technical Assistance Grants


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• 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

MOROCCO: Example


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• 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 theProcurement Process

Context


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• Preparation of Bidding Documents and

• Prequalification Documents

• Prequalification Process

• Bid Evaluation

Role of the Borrower


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• 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 commenton each stage of the selection process


PPRU/Procurement Unit


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• Negotiation, Award and Signing of Contracts

• Contract performance

• Consideration of Claims

• Settlement of Invoices



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• 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

Role of the Bank


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• Procurement Process Verified at Each Stage

• Bank’s “No objection” for Bid Evaluation Report Prior to the Award of Contracts

• Imposition of Sanctions relating toFraud and Corruption

Role of the Bank


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Issues in Procurement Planning

3. Types of Financing:3. Types of Financing:

•Parallel Financing or Joint Parallel Financing or Joint FinancingFinancing

1. Who is Procuring What?

2. Sources of Financing:• Government or Local Government or Local

Administration;Administration;• Bilateral Funding Bilateral Funding

Agency;Agency;• Multilateral Funding Multilateral Funding

Agency; Agency; • Several Sources of Several Sources of

Funding.Funding.

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.


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• 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

Before Award: Sources of Information on Bank Group-financed Projects


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Registration- DACON

A new on-line registration system is now available at the following address:

http://ext.afdb.org:8080/ADBDaconWeb/dacon/Home.htm


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Before Award• List of procurement itemsList of procurement items to be acquired under the to be acquired under the

project: Goods (equipment, vehicles, supplies, project: Goods (equipment, vehicles, supplies,

fertilizers, books), Works to be constructed or fertilizers, books), Works to be constructed or

rehabilitated; and Consultancy Services (technical rehabilitated; and Consultancy Services (technical

assistance, advisory, training, supervision) to be assistance, advisory, training, supervision) to be

acquired.acquired.

• Determine (APA) target datesDetermine (APA) target dates (inter-relationships) (inter-relationships)

within the overall project implementation within the overall project implementation

framework.framework.

• Decide on the content of procurement packagesDecide on the content of procurement packages;;


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Before Award: Bid Packaging

• Time Element: Time Element: items items are neededare needed at different times; at different times;

• Management Aspects: Management Aspects: one main contractor or EA;one main contractor or EA;

• Competitive Aspects Competitive Aspects (how to divide items into (how to divide items into

lots of optimum size to encourage maximum lots of optimum size to encourage maximum

competition);competition);

• Business Structure Business Structure (goods or services are not (goods or services are not

available from a single source);available from a single source);

• Administrative Costs of Tendering;Administrative Costs of Tendering;

• Point of View of Co-financing.Point of View of Co-financing.


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Before Award: Consultancy Services – Short-listing

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


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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

During Award


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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"

During Award


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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


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Placing the Contract

• Bank reviews contractBank reviews contract• All main conditions examined All main conditions examined • No Objection neededNo Objection needed

• If obtained,contract may proceedIf obtained,contract may proceed


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After Award: Contract Management

• Vitally importantVitally important

• The Borrower is responsible.The Borrower is responsible.


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After Award: Contract Supervision

• ReportingReporting• Means by which the contract is Means by which the contract is

controlledcontrolled• Must include:Must include:

• Progress of workProgress of work• staff months spentstaff months spent• Money spentMoney spent


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• 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

After Award: Disbursement


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After Award: Contract completion-closeout

• Draft final reports to be reviewed and Draft final reports to be reviewed and approvedapproved

• Accounts closedAccounts closed• Demobilisation of consultants staffDemobilisation of consultants staff• Evaluation of consultants staffEvaluation of consultants staff


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• BID MANIPULATION/COLLUSION

• BRIBERY

• KICKBACKS

• MISREPRESENTATION

MOST COMMON CORRUPT PRACTICES


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• 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.

Anti Corruption Strategy


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• 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;

• 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.



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• 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.



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• 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

Misprocurement


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Procurement Review Committee (PRC)

• Neutral and Independent

• Reviews receivable complaints

• Makes final decision on behalf of the Bank

Redress Mechanisms


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• 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

PRCOUREMENT INTEGRITY: MEASURES


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• 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

ADDITIONAL MEASURES


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THANK YOU