1. Argentina – SEPA Andrés Mac Gaul (LCSPT) Fiduciary Forum 2008

2. Origin of SEPA FAP CMU Initiative Increasing CAS Fiduciary Requirements (100% Investment Lending) Fiduciary Issues in Bank Funded Operations, including indications of collusion in civil works. Country weak control environment

3. FAP Main Components 1.SEPA: web-based information system providing the public with easy access to detailed information on all Bank financed contracts 2.Enhanced Bank Fiduciary Monitoring: Integrated Fiduciary Performance Assessments (IFPA); Improved Audit Compliance 3.PMM: Price Monitoring Mechanism for Civil Work Contracts 4.Mainstream of PIUs in cooperation with Government

4. What is SEPA? Innovative, web-based system for planning and monitoring of all Bank- financed contracts, both from a procurement and a project management perspective. Website completely open to the public Shared information platform upon which the government and Bank teams discuss and negotiate projects’ procurement plans

6. SEPA Work Flow Unidad Ejecutora Plan de Adquisiciones Via web Banco Mundial Provee No Objeción Sitio Web externo del SEPA Actualiza información sobre ejecución (insumo periódico) Datos sobre la Ejecución de los Planes de Adquisiciones Insumo Plan de Adquisiciones con comentarios Solicita Aprobación

7. SEPA REPORTS

9.  Project Implementation 1.Planned Amount / Project Amount 2.Committed Amount / Project Amount 3.Paid Amount / Project Amount 4.% of Compliance with Annual Procurement Plan SEPA INDICATORS

10.  Procurement 1.Efficiency. Time between advertisement and contract signature 2.Cost Estimates Reliability. Price Deviations (Actual Contract Prices vs. Cost Estimates) 3.Competitiveness. Number of bids received.. 4.Competitiveness. Closeness of bid prices. SEPA INDICATORS

11.  III. Contract Administration 1.Implementation Efficiency in Implementation: delays in contract completion 2.Deviations in Contract Prices (Variation Orders) SEPA INDICATORS

12. SEPA Indicators

13. SEPA – The Health Case Sample for an in-deep PPR drawn from the SEPA: Lowest Bid Price rejected. Same items procured. IT procurement

14. Price Monitoring Mechanism for Civil Works Contracts It aims at ensuring that reliable cost estimates be available before each procurement step: –Procurement Planning –Bidding Document Submission –Bid Evaluation –Possible Rejection of all bids It will also provide the SEPA with a price indicators and red-flags tool.

15. Lessons Learned PROS: very useful tool that sets high standards. Possibilities of expansion (i.e., tracking system) CONS: possible duplication with other Bank and Government systems.

16. What has been the impact of SEPA?  Recognition from a wide variety of stakeholders of as a tool aimed to improve transparency in Bank operations  Bank as a facilitator between Civil Society and Government. SEPA information is widely accessible and understood  SEPA software is owned by the LCSOS and it has been shared with others free of cost  Increased demands for replication of SEPA by other financiers (IDB) and by countries (Honduras, Mexico, Colombia, Uruguay, and others).  The longer term goal is that the system would evolve as an international network to ensure the transparency of governmental procurement, irrespective of the source of financing of the procurement.