Philippines Second Social Expenditure Management Project Textbook Component

1
PhilippinesSecond Social Expenditure Management
ProjectTextbook Component

• Good News on the Procurement of Textbooks

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Key Policy Changes Introducedin textbook
procurement, 2000-2003

• More public biddings made more competitive and
  transparent through the introduction of
  International Competitive Bidding (ICB).
• International procurement practices were the
  basis for the new Procurement Reform Act (RA
  9184).
• Strengthened Procurement System broadly aligned
  and harmonized with ODA partners.
• Result Leveled playing field, more bidders
  participate
• The World Bank supported all these reforms and we
  continue to do so through projects, policy
  dialogue, and grants.

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Positive Impact of Procurement Reforms for
textbooks

• Cheaper by at least 50 (i.e., from an average of
  P90-100 to P40 per book) from SEMP-1 in 2000
• As a result, significant savings of at least
  P2.63 billion or approximately 52.5 million
• Better content (implementation of rigorous
  4-level content evaluation procedure by
  different specialists)

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Positive Impact of Procurement Reforms for
textbooks

• Better quality of printing, more durable binding,
  thicker paper (from 54 gsm to 70 gsm), longer
  book life (from just 2 years before 1999 to 4-5
  years now) testing done by Industrial Technology
  Development Institute of DOST
• Significantly reduced duration of textbook
  procurement from bid opening to award (from 24
  mos. before SEMP down to 2-3 months)

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Positive Impact of Procurement Reforms for
textbooks

• Greater transparency through strong engagement of
  civil society groups in textbook procurement,
  delivery and inspection (36 CSOs)
• Mainstreaming of procurement reforms in DepEd,
  making it possible to have more efficient use of
  government funds to meet the needs of
  schoolchildren

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Who have benefited fromProcurement Reforms
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The Procurement ProcessRole of Government The
World Bank

• Procurement arrangements are discussed and agreed
  between the Government and the WB and are
  specified in the Loan Agreement.
• The Government is responsible for implementation,
  including all procurement (bidding, evaluation,
  and award of contracts) in projects financed by
  WB loans.
• WBs fiduciary responsibility is to review
  implementation, including procurement to ensure
  that funds are used for the intended purpose and
  that the agreed procurement procedures are
  strictly followed.
• In carrying out this responsibility, the WB
  reviews certain procurement decisions which the
  Government makes and provides a no objection.
  In doing this, it is obliged to act with complete
  impartiality.

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For large and complex textbook procurement

• Tenders are conducted under International
  Competitive Bidding, so the WBs Procurement
  Guidelines apply.
• A number of WB sector specialists, senior
  procurement specialists, legal department, under
  the oversight of WB management review and
  formulate the advice and responses to the
  Government hence any advice or letter issued by
  WB is an institutional advice to government.
• Checks and balances are built into the WB
  procurement advice to Government to ensure that
  the advice is consistent, and that procurement
  guidelines are strictly followed.
• The final selection decision is made by the
  responsible Government entity.

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Role of a bidder

• Study the bidding documents carefully as it
  provides the rules to be followed.
• During the clarification/bid preparation process,
  critically review the bidding document and send
  written comments to the agency for any ambiguity,
  omission or internal contradictions or conditions
  that are unclear, discriminatory or restrictive.
• After bid submission and opening, bidders are
  free to send copies of their communication on
  issues and questions to the agency and/or to the
  Bank directly.
• After notification of award, a losing bidder may
  request for debriefing from the agency. If he is
  not satisfied with the explanation of the agency,
  he may seek a meeting with the Bank but only his
  bid will be discussed and not the bids of
  competitors.

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Allegations/Complaints Regarding 2006 Bidding

• While competition is good, it is not uncommon to
  receive complaints from losing bidders.
• WB reviewed the recent award of Social Studies
  textbook contracts and according to all
  information available to the WB, these awards
  were made in accordance with the applicable
  guidelines for procurement under World Bank
  financing and with the provisions of the legal
  agreement for the SEMP-2 Project, signed between
  the Philippines and the World Bank.

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Basic Information

• Total SEMP-2 Project Cost 115 Million
• World Bank Financing 100 million
• Project Start September 2002
• Project Closing Date December 31, 2006
• Executing Agency Department of Budget and
  Management
• Implementing Agencies Department of Education
• Department of Health
• Department of Social Welfare Development
• Department of Public Works Highways
• Project Objectives Provision of quality inputs
  to social services (education, health and social
  welfare) and enhancing performance and
  governance through systems improvement and
  reforms (procurement, financial management and
  information technology reforms)

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Project Components

• Strengthening Key Budgetary Programs
• Schoolbuilding Program
• Repair and Maintenance of Schoolbuildings
• Textbooks
• Purchase of Vaccines
• Implementation of Comprehensive and Integrated
  Delivery of Social Services Program
• Systems Improvement and Reform
• Financial Management
• Procurement
• Management Information Systems and Information
  Technology Improvement
• Human Resources Management Improvement (Teacher
  Deployment)
• Strengthening of the Bureau of Food and Drugs
• Transparency and Accountability Mechanisms

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Breakdown of Loan Proceeds

• Civil Works (Schoolbuildings) 9.45
  million
• Goods 79.42 million
• Textbooks
• TB Vaccines
• EPI Vaccines
• Rabies Vaccines
• School Repair and Maintenance 2.94 million
• CIDSS 4.15 million
• Operating Cost 3.04 million
• Fee 1.00 million
• TOTAL 100.00 million
• As of October 2006, 32M has been disbursed for
  textbooks out of 40M allocation