Presentation By

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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

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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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Financed Operation Translates to

• Works

Goods
Services
Through Lending Instruments

• Project Loans
• Lines of Credit
• Investment Loans

• Structural Adjustment Loans
• Technical Assistance Grants

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MOROCCO Example
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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

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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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Role of the Borrower

• Preparation of Bidding Documents and
• Prequalification Documents
• Prequalification Process
• Bid Evaluation

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• Advertises and Issues Bidding Documents
• Evaluates and Selects
• Awards, Signs and Administers Contract
• Supervises Contract Execution
• Processes Invoices for Payment

Role of the Borrower
Bank required to approve or commenton each stage
of the selection process
PPRU/Procurement Unit
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Role of the Borrower

• Negotiation, Award and Signing of Contracts
• Contract performance
• Consideration of Claims
• Settlement of Invoices

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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
• Banks No objection for Bidding Documents

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Role of the Bank

• Procurement Process Verified at Each Stage
• Banks No objection for Bid Evaluation Report
  Prior to the Award of Contracts
• Imposition of Sanctions relating toFraud and
  Corruption

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Issues in Procurement Planning

• 3. Types of Financing
• Parallel Financing or Joint Financing

• Who is Procuring What?
• 2. Sources of Financing
• Government or Local Administration
• Bilateral Funding Agency
• Multilateral Funding Agency
• Several Sources of 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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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

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Registration- DACON
A new on-line registration system is now
available at the following address http//ext.af
db.org8080/ADBDaconWeb/dacon/Home.htm
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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

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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
• 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 contract
• All main conditions examined
• No Objection needed
• If obtained,contract may proceed

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After Award Contract Management

• Vitally important
• The Borrower is responsible.

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After Award Contract Supervision

• Reporting
• Means by which the contract is controlled
• Must include
• Progress of work
• staff months spent
• Money spent

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After Award Disbursement

• Borrower responsible to settle payments
• Payments upon Borrowers request
• Direct to beneficiary or
• Letter of Credit or
• Revolving Fund (Borrowers Pay)
• Disbursement (payments) in contract currency
• The Banks policy on arrears and Sanctions

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After Award Contract completion-closeout

• Draft final reports to be reviewed and approved
• Accounts closed
• Demobilisation of consultants staff
• Evaluation of consultants staff

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• BID MANIPULATION/COLLUSION
• BRIBERY
• KICKBACKS
• MISREPRESENTATION

MOST COMMON CORRUPT PRACTICES
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• Banks 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.
• Banks 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.

Anti Corruption Strategy
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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.

Anti Corruption Strategy
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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

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Redress Mechanisms

• Procurement Review Committee (PRC)
• Neutral and Independent
• Reviews receivable complaints
• Makes final decision on behalf of the Bank

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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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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

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• THANK YOU