GAC Hub Training Addis Ababa Procurement 2007

PEFA Performance Indicator PI 19: Competition, value for money and controls in procurement Use of open competition for award of contracts that exceed the nationally established monetary threshold for small purchases Justification for use of less competitive methods Existence and operation of a procurement complaints mechanism

Diagnozing the existing situation Critical area - c. 10% GDP Huge potential for fraud and corruption (TI’s $400b) First step: assess the present situation – are the formal rules adequate, how do they work in practice, how transparent and competitive is the process? CPARs – all countries covered, many several times, in last decade Findings: Inadequate legal framework Poorly implemented Weak oversight

Findings Usual CPAR recommendations Enact UNCITRAL model procurement law Create independent procurement regulator Abolish CTB, devolve to MDA TBs and hold accountable Procurement cadre Independent complaints mechanism Issue procurement regulations and SBDs Transparent tendering, annual report

What’s been happening? Slow passage of procurement law - reluctance to surrender control over rents? Elements of old practices creeping back? (CTB, national preferences, cabinet override) Slow build up of procurement skills Is public procurement at central and local govt levels, SAs, SOEs, become more open, competitive, transparent and predictable? Has contract management improved? Has anything happened to strengthen framework for asset disposal and concessions?