1. Seventh Public Procurement Forum Revisions to the UNCITRAL Model Law
Hosts: Government of Georgia
Co-sponsors: AsDB, EBRD, IsDB and WB
Tbilisi, Georgia, May, 2011
Caroline Nicholas
UNCITRAL
May 2011

2. Seventh Public Procurement Forum Revisions to the UNCITRAL Model Law
What is it?
Model for national procurement legislation
Cf GPA, APEC non-binding principles
Minimum standards for procurement
Who uses it?
Economies in transition
Developing countries
MDBs as a tool for procurement reform

3. Seventh Public Procurement Forum Revisions to the UNCITRAL Model Law
Objectives of the UNCITRAL Model Law
Value for money/economy
Efficiency
Participation, competition
Fair treatment
Integrity and public confidence
Transparency

4. Seventh Public Procurement Forum Revisions to the UNCITRAL Model Law
Revisions to Model Law – why?
Update the text (1994)
Introduce e-procurement
Apply experience in implementation and use
No change to key principles and features
Started in 2004
Consensus approach
New text will be adopted in June 2011
Revised Guide available during 2011

5. Seventh Public Procurement Forum Revisions to the UNCITRAL Model Law
Key principles of Model Law (unchanged)
Transparency
Competition
Objectivity
These principles support achieving value for money and avoiding abuse

6. Seventh Public Procurement Forum Revisions to the UNCITRAL Model Law
Key features of Model Law
Mandatory requirements
To identify, specify items to be purchased
To determine which suppliers can participate
Open procedures unless justification for exclusion
Notices/advertisements
Pre-determined evaluation criteria and award procedures
Prescribed procurement methods/procedures
Challenge mechanism for breaches of rules/procedures

7. Seventh Public Procurement Forum Revisions to the UNCITRAL Model Law
Main changes in revised Model Law
New provisions:
e-procurement
Framework agreements
Conflicts of interest
New method for complex procurement
Strengthened provisions
Procurement methods (choice)
Evaluation of tenders
Remedies and enforcement
Overall aim: more user-friendly

8. Seventh Public Procurement Forum Revisions to the UNCITRAL Model Law
A procurement law – does it mean a successful system?
Guide to Enactment discusses need for
Political will
Supporting infrastructure
Best practice
Culture of ethics & integrity
Ability to question
Challenges
Sanctions
Civil society role
Otherwise: law good, system not

9. Seventh Public Procurement Forum Revisions to the UNCITRAL Model Law
Context of reform (1)
The theory
Developments in procurement
From rules and compliance
To management and performance
The practical concern
Increasingly bureaucratic process?

10. Seventh Public Procurement Forum Revisions to the UNCITRAL Model Law
Context of reform (2)
Consistency with other texts
GPA
UNCAC
Harmonization with other texts?
EU Directives
MDBs standards
Different aims of different texts
Free/international trade, anti-corruption, national economic development …

11. Seventh Public Procurement Forum Revisions to the UNCITRAL Model Law
UNCITRAL and other systems - same objectives
But
Differences in presentation
Template for national law
International agreements
Differences in terminology
Eg the successful tender
Differences in procedural requirements
Eg the public opening of tenders

12. Seventh Public Procurement Forum Revisions to the UNCITRAL Model Law
UNCITRAL and other systems
Substantive differences?
Differences in procurement methods
Most methods very similar
Some methods more vulnerable than others
Some methods require greater capacity than others
Ability to pursue other policy goals through procurement

13. Seventh Public Procurement Forum Revisions to the UNCITRAL Model Law
Procurement methods – complex items
Two stage tendering
MDBs, UNCITRAL
Request for proposals with dialogue
UNCITRAL
Competitive dialogue
EU Directives
Aim: to allow for interaction in complex procurement
Issues: flexibility, transparency, capacity, control

14. Seventh Public Procurement Forum Revisions to the UNCITRAL Model Law
Other policy goals and procurement
Domestic SME/Industrial development
Capacity-building
Green procurement
Sustainable procurement
Offsets
UNCITRAL allows selection to reflect these policies
Free trade agreements require members to be treated equally

15. Seventh Public Procurement Forum Revisions to the UNCITRAL Model Law
Importance of holistic approach
Context of reform
Objectives
Capacity issues
Level of economic development
History, geography, legal traditions
Harmonized regimes
Regional approach

16. Seventh Public Procurement Forum Revisions to the UNCITRAL Model Law
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