Delivering Procurement Performance: Success Stories Bangladesh Second South Asia Region Public Procurement Conference

Outline of Presentation Public Procurement Reforms Legal Framework in Public Procurement Capacity Building and Institutionalization Procurement Performance Measurement (PROMIS) Modernization of Public Procurement(e-GP) Complaint Resolution Mechanism Civic Engagement in Procurement Monitoring

Bangladesh Profile 1971; ~ 144,000 sq-km; 64 districts 7 Divisions  64 Districts  486 sub-districts(Upazilla)  4,500 UPs  68,000 villages Annual national budget: ~ US$ 28 Billion Annual Development Program: ~ US$ 8 Billion Proc. expenditure: ~ 21% of national budget; ~ 70%-90% of ADP Implemented 6 medium term Plan Gradual shift: From planned  market economy Progressive improvement of procurement regime

CPAR Findings & Recommendations Absence of legal framework Bureaucratic procedure Lack of competent staff Poor quality Bidding document Ineffective contract administration Establish policy unit Carry out reforms Improve proc. capacity   Findings CPAR 2002 Recommendations

Central Procurement Technical Unit (CPTU) Established : 4/2002 Procurement Reforms through PPRP (2002-2016) PPRP ($5 M) PPRP II ($24 M) PPRP II AF ($35 M) www.cptu.gov.bd

Legislatives Chronicles GFR…, 2908 & 2911 PPR 2003 PPA 2006 PPR 2008 e-GP Guidelines 2011 PPA 2006

Capacity Building Short Proc training: 3-Week Proc. training : 1800+2950+2700 =7450 Short Proc training: (15 different audiences) 3583+10500 MCIPS 35+100 Masters in Public Procurement IGS-BRACU: 35+100 ITC-ILO-25

CIPS Selection Process 1,450 ~180 ~170 52 40 35: Number of MCIPS (June 2013) # of participants enrolled for CIPS levels 4-5-6 # of participants passing CIPS screening # of participants in CIPS screening test # of top performers from end course exam # of participants from 52 courses

Institutionalization & Sustainability Framework Establishment of procurement faculty: Engineering Staff College Bangladesh (ESCB) National Trainers Pool CIPS Study Centers: IGS, BRACU & ESCB BRACU: Conducting Masters Program in PP Institutionalizing short-training through existing public training institutes

Proc. Performance Measurement System (PROMIS) Performance Indicator 45 KPIs - 4 Agencies Performance Area Performance Indicator Baseline (2007) Present Status (up to 2012) Transparency   % of Invitation for Bid (IFB) published in newspaper Less than 70% 100% % of Contract awards published Less than 15% More than 70% Efficiency % of cases contract award decision made within initial bid validity 10% More than65% % of Contracts completed within the original schedule No record More than 50% Competitiveness Average number of Bidders submitted Bids Less than 4 nos. More than 6 nos. Average number of responsive Bids Less than 3 nos. More than 4 nos.

Modernization of Public Procurement Electronic Government Procurement (e-GP) 2 June, 2011 www.eprocure.gov.bd

e-GP: Key Features Single uniform national web portal Centralized registration system Comprehensive system from proc. plan up to final payment (e-Tendering + e-Contract Management) Automatic proc. performance monitoring (e-PMIS) Robust security features & back-up arrangement with full redundancy to ensure uninterrupted service. Harmonized with MDB guidelines Independent consultant reviewed for Bank’s use Bank accepts the BD e-GP system for its financed projects Self sustainable model – system is generating required fund

e-GP: Security Features Encrypted tender information till opening Integrity of submitted tenders Audit log of all activity of all users No password saving in database Password complexity control Last login time display

e-GP: Payment Provisions Registration fees Tender Security Performance Security Tender Document fees Renewal fees Online through Banks Payment Gateway

e-GP: Tender Dropping Tender Box

e-GP: Online Helpdesk System www.helpdesk.eprocure.gov.bd

Government Users (22 Org.) E-GP : Where we are Reg. Govt Users (22 Org.) Government Users (22 Org.) 3383 3383 Reg. Tenderer / Consultant 8353 8353 Total Reg. Users 13609 Reg. Bank user (25 Banks) 1873 17

E-GP : How we are doing Period # Registered Bidders # Bids invited Value of bids (US$ M) June -2012 294 14 3 December -2012 525 144 18 June -2013 1067 498 62 December-2013 7459 4548 319 14 March-2014 8353 6558 506

e-GP: Progress

4 Target Agencies +18 Agencies e-GP: Roll out Map All Tenders: 4 Agencies No. of PEs 300 PEs: 4 Target Agencies +18 Agencies 150 PEs: 4 Target Agencies 4 PEs: 4 Target Agencies 2011 2012 2013 2016 Time

Complaint Resolution Mechanism Administrative Review PE HOPE Secretary Review Panel Independent Review

Civic Engagement in Procurement Monitoring Public Private Stakeholder Committee (PPSC) Government Agencies Business Apex Bodies Think-tanks Academic Institutions Civil Society Help develop a framework for citizen engagement Provide suggestion to develop implementation Strategy Suggestion for any legal framework needed. Strategy for Civic Engagement in Public Procurement Monitoring at implementation part and gradually at the Process Part Citizen group formation with all stakeholders Advocacy Campaign to sensitize local people e-Tendering wherever possible Budgetary allocation Procurement watch

Public Procurement Awareness Highlights Single Uniform Legal System (PPA/PPR , e-GP guidelines) Capable Public Procurement Staffs Procurement Performance Measurement Civic Engagement in Public Procurement Modern Procurement System (e-GP) Commitment of the Government Public Procurement Awareness

Thank You Q & A Kazi Jahangir Alam Akm Jashim Uddin Md. Mosharraf Hussain