1 Fostering Aid Effectiveness: Program-Based Approaches and What it means for Procurement? Presented by Jocelyn Comtois May International Conference Governmental Financial Management

2 Paris Declaration on Aid Effectiveness Endorsement on March 2, 2005 Focus in five areas: ownership, alignment, harmonization, managing for results, and mutual accountability for which there are 56 partnership commitments. Coherent model of development cooperation aligned with developing country priorities and the use of Partner country systems. 117 Countries and Organisations have adhered to the Paris Declaration

3 Paris Declaration Progress Indicators: OWNERSHIP: (1) ALIGNMENT (7) 2ab and 5ab: Strengthen and use country Financial and Procurement systems HARMONIZATION (2) MANAGING FOR RESULTS (1) MUTUAL ACCOUNTABILITY (1)

4 Forums developed to foster implementation of the undertakings/indicators under the Paris Declaration Joint Venture Public Finance Management Joint Venture Procurement Joint Venture Management for development results Joint Venture Monitoring

5 Benchmarking Tool for Partner Country Procurement Assessment Capacity The methodology will use Baseline Indicators and Compliance indicators. The Baseline Indicators will be regroup under 4 pillars which are broken-down in a number of sub-indicators Legislative and Regulatory Framework Institutional Framework and Management Capacity Procurement Operations and Market Practices Integrity and Transparency of the Public Procurement System

6 Example Applying of Draft Methodology Pillar I – Legislative and Regulatory Framework Indicator 1. Public procurement legislative and regulatory framework achieve the agreed standards and complies with applicable obligations. 8 Sub-indicators Indicator 2. Existence of Implementing Regulations and Documentation 6 Sub-indicators Score 32 out of 42

7 Example Applying of Draft Methodology Pillar II – Institutional Framework and Management Capacity Indicator 3. The public procurement system is mainstreamed and well integrated into the public sector governance system. 4 Sub-indicators Indicator 4. The country has a functional normative/regulatory body. 4 Sub-indicators Indicator 5. Existence of institutional development capacity. 4 Sub-indicators Score 10 out of 36

8 Example Applying of Draft Methodology Pillar III Procurement Operation and Market Practices Indicator 6. The country's procurement operations and practices are efficient. 4 Sub-indicators Indicator 7. Functionality of the public procurement market 4 Sub-indicators Indicator 8. Existence of contract administration and dispute resolution provisions. 3 Sub-indicators Score 11 out of 33

9 Example Applying of Draft Methodology Pillar IV Procurement Operation and Market Practices Indicator 9. The country has effective control and audit systems 5 Sub-indicators Indicator 10. Efficiency of appeals mechanism 5 Sub-indicators Indicator 11. Degree of access to information 2 Sub-indicators Indicator 12. The country has ethics and anticorruption measures in place 7 Sub-indicators Score 17 out of 57

10 Applying Results of the Methodology

11 Foreseeable Next Steps Terminate version 3 by end of May “ Road test ” of the final methodology with Partner countries. Regional meeting to address the results of implementing tool in real case situation JV meeting to share results.

12 Summary Therefore the JV on Procurement: Provide an harmonize methodology based on best practices; Risk assessment tool and risk mitigating strategy associated with capacity development; Ultimately foster increase use of countries system; and Provide methodology to measure progress overtime.

13 Results Partners and donors can tangibly demonstrate how they meet fiduciary obligations, and how risks are managed and mitigated. Ultimately citizen of partners and donors are reassured of the maximization of Aid Effectiveness.

14 QUESTIONS / COMMENTS