Development Bank African The 1 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 REGIONAL CONFERENCE ON EHNANCING INTEGRITY IN PUBLIC PROCUREMENT

Development Bank African The 2 Introduction/Context Role of Borrower Role of Bank Before Award During Award After Award Anti-Corruption Strategy Redress Mechanism Integrity Measures Content

Development Bank African The 3 Works Financed Operation Translates to: Project Loans Lines of Credit Investment Loans Through Lending Instruments GoodsServices Structural Adjustment Loans Technical Assistance Grants

Development Bank African The 4 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 MOROCCO: Example

Development Bank African The 5 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 the Procurement Process Context

Development Bank African The 6 Preparation of Bidding Documents and Prequalification Documents Prequalification Process Bid Evaluation Role of the Borrower

Development Bank African The 7 Advertises and Issues Bidding Documents; Evaluates and Selects; Awards, Signs and Administers Contract; Supervises Contract Execution Processes Invoices for Payment Bank required to approve or comment on each stage of the selection process Role of the Borrower PPRU/Procurement Unit

Development Bank African The 8 Negotiation, Award and Signing of Contracts Contract performance Consideration of Claims Settlement of Invoices Role of the Borrower

Development Bank African The 9 The Bank is not Party to the Contract Preparation of Bidding Documents: Mandatory Use of Standard Bank Documents, Free Access to UNDB Bank’s “No objection” for Bidding Documents Role of the Bank

Development Bank African The 10 Procurement Process Verified at Each Stage Bank’s “No objection” for Bid Evaluation Report Prior to the Award of Contracts Imposition of Sanctions relating to Fraud and Corruption Role of the Bank

Development Bank African The 11 Issues in Procurement Planning 3. Types of Financing: Parallel Financing or Joint FinancingParallel Financing or Joint Financing 1.Who is Procuring What? 2. Sources of Financing: Government or Local Administration;Government or Local Administration; Bilateral Funding Agency;Bilateral Funding Agency; Multilateral Funding Agency;Multilateral Funding Agency; Several Sources of Funding.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.

Development Bank African The 12 Press Releases Appraisal Reports Quarterly Operational Summary (QOS) of Projects United Nations Development Business Bank's Web site: ADB Business Bulletin Project Executing Agencies in Borrowing Countries Before Award : Sources of Information on Bank Group-financed Projects

Development Bank African The 13 Registration- DACON A new on-line registration system is now available at the following address: acon/Home.htm

Development Bank African The 14 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.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.Determine (APA) target dates (inter-relationships) within the overall project implementation framework. Decide on the content of procurement packages;Decide on the content of procurement packages;

Development Bank African The 15 Before Award: Bid Packaging Time Element: items are needed at different times;Time Element: items are needed at different times; Management Aspects: one main contractor or EA;Management Aspects: one main contractor or EA; Competitive Aspects (how to divide items into lots of optimum size to encourage maximum competition);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);Business Structure (goods or services are not available from a single source); Administrative Costs of Tendering;Administrative Costs of Tendering; Point of View of Co-financing.Point of View of Co-financing.

Development Bank African The 16 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

Development Bank African The 17 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

Development Bank African The 18 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

Development Bank African The 19 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

Development Bank African The 20 Placing the Contract Bank reviews contractBank reviews contract All main conditions examinedAll main conditions examined No Objection neededNo Objection needed If obtained,contract may proceedIf obtained,contract may proceed

Development Bank African The 21 After Award: Contract Management Vitally importantVitally important The Borrower is responsible.The Borrower is responsible.

Development Bank African The 22 After Award: Contract Supervision ReportingReporting Means by which the contract is controlledMeans by which the contract is controlled Must include:Must include: Progress of workProgress of work staff months spentstaff months spent Money spentMoney spent

Development Bank African The 23 Borrower responsible to settle payments Payments upon Borrower’s request: Direct to beneficiary; or Letter of Credit; or Revolving Fund (Borrowers Pay) Disbursement (payments) in contract currency The Bank’s policy on arrears and Sanctions After Award: Disbursement

Development Bank African The 24 After Award: Contract completion- closeout Draft final reports to be reviewed and approvedDraft final reports to be reviewed and approved Accounts closedAccounts closed Demobilisation of consultants staffDemobilisation of consultants staff Evaluation of consultants staffEvaluation of consultants staff

Development Bank African The 25 BID MANIPULATION/COLLUSION BRIBERY KICKBACKS MISREPRESENTATION MOST COMMON CORRUPT PRACTICES

Development Bank African The 26 Bank’s 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. Bank’s 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

Development Bank African The 27 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

Development Bank African The 28 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

Development Bank African The 29 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 Misprocurement

Development Bank African The 30 Procurement Review Committee (PRC) Neutral and Independent Reviews receivable complaints Makes final decision on behalf of the Bank Redress Mechanisms

Development Bank African The 31 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

Development Bank African The 32 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 ADDITIONAL MEASURES

Development Bank African The 33 THANK YOU