1. Procurement Priorities and Challenges
Bernard Becq
Fiduciary Forum
March 25, 2008

2. Priority Areas Fiduciary oversight function -- quality assurance
Country systems, capacity-building and procurement reforms
Impact of trade issues
Best international practice / standards
New demands, including Global Public Goods
The GAC agenda
Partnership and Harmonization
Are our policies/GLs --that served us well-- still adapted to a changing environment (outside, inside)?
Think outside of the box

3. The oversight/quality assurance function
Design projects better to mitigate procurement risks --India DIR lessons
Clarify accountabilities of all involved -- not confusing procurement from broader supervision issues (procurement is a WB trademark) / Bank model. Establish the limits on PR assurance
More effectively pick up warning signs/red flags: what to do when risks identified beyond reporting to INT, anticipate what’s ahead of the curve, risk-based approach (how?)
Manage risks during implementation
Special challenges: UN agencies, MDTFs, NGOs
Work with PREM, FM, INT and sector staff to share issues and address them as a team, collaborative approach
Transparency
Checks and balance

4. Country Systems
Move further beyond fiduciary diagnostics to implementation –piloting program that meets the principles of economy and efficiency, eligibility, transparency, and development of local industries
Key role in capacity-building and strengthening procurement systems (support to reforms)
Concerns of the industry and some country governments (not enough / too much)
Getting procurement more firmly into the public sector management framework
Leveraging the UCS approach
How to do it right (resources, independent assessments, partnerships)
Last too often forgotten

5. Best International Practice
Challenges:
Alignment or inconsistencies with GPAs
Harmonization / alignment with different procurement policies, systems and procedures
Others’ initiatives, inter alia in private sector EU directives, et al
New methods in consulting and contracting

6. New Demands
President’s priorities -- playing a more active role in Global Public Goods and more effective World Bank Group Support
Challenges:
Demand for advice on procurement issues in the provision of Global Public Goods
Operations involving non-standardized procurement such as public-private partnerships, OBA, OBD
Complex procurement (from large infrastructure to CDD or HD services)
New types of procurement, e.g. advanced market commitment for certain vaccines

7. The GAC Agenda
Procurement central, given its key front-line role in fighting fraud and corruption
Avoid narrow focus on Bank operations: from diagnostics to implementation on the ground
Differentiate project preparation and supervision: build into various diagnostics and risk analysis (mapping, value chain, red flags), tackle ex-ante through project design and mitigation measures, monitor with partners during project implementation
Be part of the CGAC process and GAC implementation plan: what should we do, how to live up to the “no one-size fits all” motto and avoid SOPs ?
Compact global / country / project: how to handle ? : harmonization / UCS / risk management ! What more ?
Country legal framework and international conventions : which standards ? Ethics and integrity plans for the private sector
What to do with decentralized country procurement (e.g. CDD)?
Are we really the key vulnerability?
Harmonization: AC conventions (UN, OECD) but attention as cannot be imposed, PEFA model to focus more on procurement, OECD/DAC: road to Accra HLF 3, HoP (F&C definitions, sanctions reform)
UCS: work on country procurement reforms upfront; broad country risk assessment; web-based dynamic management model, independent third party audits and enhanced ex-post at project level under UCS, performance inter alia w regard to F&C
Risk management: dynamic risk management throughout, mitigation measures, enhanced ex-post, red flags” Ok, what’s next? What do we do when indicators seem to highlight F&C? How to discriminate between indicators and other possible reasons for e.g. bid prices close to cost estimate (I could argue it is rather a sign of sound and close competition)

8. Partnership and Harmonization
HoP: a new frontier
OECD/DAC : after Accra
PEFA : better focus on procurement
UN agencies : special agreements for supply and TA, Fiduciary Framework Agreement
NGOs (CDD context in particular)
MDTFs, particularly when emergency / rapid response

9. The procurement network
Highly decentralized staff, facing growing demands
Balance country work – fiduciary oversight
Adjust/participate in development of new initiatives / lending instruments
Develop new policies/procedures/methods ?
Procedures and standards vary across Regions (IDA 14 review)
Bank-wide standards of quality assurance, so borrowers are treated equally across Regions
Procedures to regularly verify quality
Differentiation vs simplification

10. Challenges for the Procurement Network
New skills for risk-based approach, and support for defining better risk mitigation measures
Role in supervision : balance of power / voices heard. Attention to risk adverse attitude
Resources-constrained environment: What to do differently ? Working better together ! Upfront work
Managing the UCS piloting program, and other new initiatives
Role in project design / investment lending reform
Educating others
Sharing knowledge and providing learning opportunities: virtual network to exchange information and best practice
Career development (new streams?), staff mobility
Skills mix, K&L Strategy
INT: e.g. indicators of F&C one thing, reality another, which implies questions as to what to do next
Avoid the monkey on our back