eGP and the Multilateral Development Banks

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eGP and the Multilateral Development Banks
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Overview

• What is eGP?
• How the MDBs are working together on eGP
• Potential benefits
• Critical success factors

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What is eGP?

• eGP is the use of Information and Communications
  Technology (especially the Internet) by
  governments in conducting their procurement
  relationships with suppliers for the acquisition
  of goods, works, and consultancy services for the
  public sector.

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E-Tendering relates to public tenders for the
acquisition of specialized goods, works, and
consulting services that are of high value and
low volume. Introduction can be phased and
incremental costs low .
E-Purchasing relates to the acquisition of
low-value and high-volume standard goods and
services. Systems tend to be complex and require
substantial system development .
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MDB Harmonization Initiatives

• Procurement a key area
• Managed by Heads of Procurement (HOP)
• eGP Working Group reports to HOP

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eGP Working Group Membership

• Asian Development Bank
• Inter American Development Bank
• World Bank
• African Development Bank
• Nordic Development Fund

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eGP Working Group Objectives

• Promote Common Understanding of eGP
• Jointly Develop Tools for Policy making,
  Assessment, and Planning
• Share eGP Strategies and Approaches
• Harmonize Policy Work
• Cooperate on Workshops and Seminars

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Potential Benefits of eGP

• Efficiency
• Transparency
• Equality and Fairness
• Encouragement of Local Business

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Efficiency

• Increased competition lowers prices
• Better administration lowers transaction costs
• Shorter bidding periods, fewer errors
• Management information improves decision making

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Transparency

• More information, more timely, to more people

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Equality and Fairness

• Geography and time neutral
• Transparent rules and processes level the playing
  field
• Simplified procedures reduce the skills gap

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Encouragement of Local Business

• Standard procedures simplify bidding
• Built in features to target SMEs
• Business networking for JVs, subcontracting
• Improved market intelligence to identify niches

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Success Factors

• Government Leadership
• Policy and Legal Framework
• Institutional Change
• Awareness and Capacity Building
• Technology