Procurement Management Challenges and Lessons Learned Implementing Multi-Sectoral HIV/AIDS Programs in Sub-Saharan Africa Africa Region AIDS Consultation Addis Ababa February 18, 2005

What is the Multi-Country AIDS Program? (MAP) 32 countries and 3 regional projects approved 27 are effective and 3 more are in the pipeline U$32million is the average project size (From U$7m for Guinea-Bissau to U$102m for DRC) Funding of U$ 1.1b (as of December 2004), About 40% implemented through NGO/CBO/FBO Grants – small orders using simple procedures About 40-50% involves major procurement mostly at the central level Contract management is not only the responsibility of Procurement Specialists but all Implementing Partners.

The procurement process in MAP Involves a clear understanding of what to buy, how to buy, from where to buy, and what legalities are involved in the process. If these aspects are clearly known and followed, procurement becomes simpler to manage. Resources in MAP Projects include goods (equipment, consumables, condoms, drugs, ARVs and medical supplies), civil works (generally small constructions and rehabilitations) and services (individual consultants, firms, training).

The procurement process in MAP MAP invites active participation of the government (including its line ministries), private sector, civil society groups, communities, etc., at various levels of society from the national to the village. So the procurement procedures have different scope and applicability (one size doesn’t fit all). Procurement planning at all levels is essential.

The procurement process in MAP Contracts subject to prior review (no-objection) are very limited because about 85% of procurement in MAP projects are done using National Competitive Bidding (NCB), shopping (orders of small value based on quotations) and other simplified procedures that use government rules. Contracts subject to prior review are for the procurement of ARVs, drugs, condoms, vehicles, computers and large consultants contracts: financial & technical audit, fiduciary management agency, social marketing of condoms, etc. Most of these contracts are awarded at the beginning of the project.

The challenges a) Technical challenges Prior review/No-objection Low thresholds & low aggregate expenditures Interpretation of procurement procedures at different levels Many problems relate to Contract Management

The challenges b) Capacity challenges Trained staff Guidelines Reporting Adapting changes for efficiency Procurement monitoring & evaluation Contracting out of routine tasks to public or private sector Give example of rice bags procurement for home based care. Conclusion: Lack of assessment in procurement capacity, lack of planning, lack of understanding of procedures.

What has been done?

a) Policy review and guidelines Prior review thresholds have been increased in many projects based on post procurement reviews. No aggregate amount for any method of procurement is now required and DCA/DGA have been amended to introduce more flexibility particularly for the procurement of ARVs. Technical Guidelines on the procurement of ARVs developed and approved by the procurement board. Generic procurement guidelines for Community Based Organizations, Local NGOs and Supply Chain Management produced. Generic procurement guidelines for larger NGOs and private sector under preparation. Collaboration with the Clinton Foundation.

b) Bank Staff Africa region Fiduciary Forum event has integrated HIV/AIDS as one of its agenda points Focal points designated for Anglophone and Francophone countries in Africa About $300,000 from the Dutch Government is available for capacity building for 13 MAP countries.

Lessons learned Does outsourcing procurement management and other operational functions improve efficiency? World Bank’s rules/procedures are flexible. Bulk of procurement in MAP projects is done using national rules. There is a misunderstanding about the applications of rules and procedures at different levels. Procurement planning should be completed early in project preparation and reviewed regularly to avoid delays.

Lessons learned Simplified and speedy procedures are in place for time-sensitive goods and services, especially drugs and ARVs and could be used. Sample technical audit (determination of value for money, quality of outputs and outcomes) should be a regular practice for NAC. User friendly, simple guidelines for the 3 levels of government (national, provincial, community). Availability of procurement advisory services at all 3 levels, Support to the project and field staff (especially to deal with the ARV procurement),