1. PROCUREMENT IN PRSCs – Case of Uganda March 24-28, 2008 Playing a Key Role in achieving the Development Results Playing a Key Role in achieving the Development Results

2. 2 PROCUREMENT IN PRSCs – Case of Uganda Playing a Key Role in achieving the Development Results Playing a Key Role in achieving the Development Results Summary of Presentation  PRSC Instrument  Procurement in PRSCs  Action items and triggers in terms of procurement - good practice  What have we achieved in procurement as a result of PRSCs? To what extent have PRSCs helped in the procurement reform agenda  Issues to be highlighted and lessons learnt  Any issue for policy consideration

3. 3 PROCUREMENT IN PRSCs – Case of Uganda Playing a Key Role in achieving the Development Results Playing a Key Role in achieving the Development Results Poverty Reduction Support Credit (PRSC)  A Development Policy Credit  Supports Policy and Institutional Reforms  Reforms set up in multi-year matrix with results focused indicators and progress benchmarks for monitoring the overall implementation  Most critical actions made “prior actions” before presentation of credit to the Board

4. 4 PROCUREMENT IN PRSCs – Case of Uganda Playing a Key Role in achieving the Development Results Playing a Key Role in achieving the Development Results Procurement in PRSCs  PRSC presents a critical forum to discuss design and implementation of procurement reforms  It is a strong instrument to enforce and monitor implementation of procurement reforms  It is the most appropriate instrument to address cross-cutting sector issues such as pay reform and corruption

5. 5 PROCUREMENT IN PRSCs – Case of Uganda Playing a Key Role in achieving the Development Results Playing a Key Role in achieving the Development Results. Procurement in PRSCs contd.  Uganda was one of the two countries that pioneered the first PRSCS in 2001  Procurement was one of the sectors identified for reforms  The reforms would be designed and implemented in a multi-year framework  Implementation of Procurement Reforms designed in the first PRSC still being implemented, will continue under the 7 th PRSC, now being processed for presentation to the Board, and beyond

6. 6 PROCUREMENT IN PRSCs – Case of Uganda Playing a Key Role in achieving the Development Results Playing a Key Role in achieving the Development Results Procurement Reforms under PRSCs  Underlying Principles PARADIGM SHIFT FROM “RETAIL” PROCUREMENT REVIEW TO “WHOLESALE REFORMS” Ownership Commitment Partnership  In Uganda PRSC provided a forum for multi-sector discussion of procurement reforms

7. 7 PROCUREMENT IN PRSCs – Case of Uganda Playing a Key Role in achieving the Development Results Playing a Key Role in achieving the Development Results Action Items and Triggers in Terms of Procurement - Good Practice  There were two categories of actions agreed during the 7 PRSCs: Actions required for designing the procurement reforms Actions required for implementing the reforms  In order to ensure that the Government takes the agreed actions, triggers in the form of prior actions were agreed as conditions for Board approval

8. 8 PROCUREMENT IN PRSCs – Case of Uganda Playing a Key Role in achieving the Development Results Playing a Key Role in achieving the Development Results Examples of Action Items and Triggers in Terms of Procurement - Good Practice (contd.) PRSC 1PRSC 2PRSC 3PRSC 4 Minister of Finance has issued new procurement regulations for ministries, departments and agencies. TRIGGER Minister of Finance tables Procurement Bill in Parliament. TRIGGER Minister of Local Government (MoLG) has harmonised local government procurement regulations with central government By May 2004 the MoLG will have submitted to Cabinet the draft Local Government Regulations & Disposal of Assets Regulations and proposals to amend the Local Government Act, particularly on those issues relating to the appointment and removal of the tender board members TRIGGER Minister of Finance establishes a new reformed Central Tender Board (RCTB) and contract committees are created in all procuring ministries, departments and agencies. Ministry of Public Service has issued instructions to procurement entities (ministries, departments, agencies) to establish procurement units Procurement units are created in all procuring ministries, departments and agencies.

9. 9 PROCUREMENT IN PRSCs – Case of Uganda Playing a Key Role in achieving the Development Results Playing a Key Role in achieving the Development Results Examples of Action Items and Triggers in Terms of Procurement - Good Practice (contd.) PRSC 1PRSC 2PRSC 3PRSC 4 Procurement plans are incorporated in sector expenditure programs in health, education and water/sanitation. Procurement plans are incorporated in all sector expenditure programs RCTB has published the first quarterly report of contracts awarded costing more than US$200,000. RCTB has published the First Annual Report RCTB has published the Second Annual Report RCTB has held accounting officers of procurement entities responsible for procurement functions New RCTB carries out independent procurement audits covering at least 20% of the value of procurement in education, health and water/sanitation RCTB carries out independent procurement audits covering at least 20% of the value of procurement at Central Government and 30% of the districts

10. 10 PROCUREMENT IN PRSCs – Case of Uganda Playing a Key Role in achieving the Development Results Playing a Key Role in achieving the Development Results What have we achieved in procurement as a result of PRSCs?  Through the PRSCs, the following actions were implemented First CPAR was carried out under PRSC 1 in 2001 and the second was carried out under PRSC 4 in 2004 Central Tender Board was abolished in 2001 Procurement Regulations based on the organic Finance Act introduced in May 2001 Reformed Central Tender Board (RCTB) was established as a regulatory body in May 2001 Procurement Approval decentralized to Contract Committees at Procuring Entity level Procurement Units created in Procuring Entities A new Procurement Law was enacted in December 2002 and became effective in February 2003 Procurement Regulations based on the Procurement Law promulgated in 2003

11. 11 PROCUREMENT IN PRSCs – Case of Uganda Playing a Key Role in achieving the Development Results Playing a Key Role in achieving the Development Results What have we achieved in procurement as a result of PRSCs? (contd.) Under the Procurement Law, a new Regulatory Authority was established (Public Procurement and Disposal of Public Assets Authority – PPDA) to replace the Reformed Central Tender Board A Procurement Cadre was established in the Civil Service Scheme A Capacity Development Strategy was prepared and is currently under implementation

12. 12 PROCUREMENT IN PRSCs – Case of Uganda Playing a Key Role in achieving the Development Results Playing a Key Role in achieving the Development Results Procurement aspects of Local Government Law have been harmonized with the Procurement Law through revision of the Local Government Law Regular procurement audits are being carried out Capacity building is going on in earnest  The above achievements were only possible because Procurement was made an integral part of Economic Policy Reforms which have been designed, implemented and monitored under the PRSC instrument. Without this instrument, it is unlikely that the Government would have so easily agreed with the procurement reforms that have taken place. What have we achieved in procurement as a result of PRSCs? (contd.)

13. 13 PROCUREMENT IN PRSCs – Case of Uganda Playing a Key Role in achieving the Development Results Playing a Key Role in achieving the Development Results  Main Issues and Lessons learnt at the design stage Buy-in by the Uganda Government – Need to take time to explain the objectives and benefits of the CPAR Ownership of the CPAR by the Government – CPAR exercise to be driven by the government (The Government should be at the driver’s seat). Participation by Development Partners (DPs)  Lack of capacity  Lack of interest  Confidence of DPs to leave the Bank to handle the exercise  Need to take time to explain the objectives and benefits of the CPAR Funding  Need to involve DPs, at least in providing funds for designing reforms Issues to be Highlighted and Lessons Learnt

14. 14 PROCUREMENT IN PRSCs – Case of Uganda Playing a Key Role in achieving the Development Results Playing a Key Role in achieving the Development Results Issues to be Highlighted and Lessons Learnt (contd.)  Main Issues at the Implementation Stage Lack of adequate capacity of the Government and implementing agency – Need for the Government to use external consultants to assist in the implementation Lack of political will - Need to have a champion to push through implementation of the reforms Inadequate Funding – Need to involve DPs in funding implementation of the reforms which they might have financed at the design stage