bangladesh's experience - public financial management and procurement

8/8/2019 Bangladesh's Experience - Public Financial Management and Procurement

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BANGLADESH EXPERIENCEBANGLADESH EXPERIENCE

PUBLIC FINANCIAL MANAGEMENTPUBLIC FINANCIAL MANAGEMENT

ANDANDPRPROCUREMENTOCUREMENT

A presentation for

Concurrent Session on

Public Financial Management and Procurement


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ContentsContents

Financial Management: Public Financial Management Reforms

Lessons Learnt

Harmonization, Alignment and Simplification-broad picture

Future Challenges

Procurement

Procurement Reform

Lessons Learned & Contributions to

Harmonization Use of Country Systems: Procurement in relation

to PFM

Future Challenges


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PFM ReformsPFM Reforms Joint Diagnostic studies :

Committee on Reforms in Budgeting andExpenditure Control ( CORBEC) DFID and GOB;

Way Forward for FM Reform in Bangladesh- DFIDand GoB

Country Financial Accountability Assessment(CFAA)- World Bank, UNDP and GoB

PFM indicators as a part of on-going Joint PublicExpenditure,Procurement and Financial

Management Review -DFID, WB & GOB


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PFM Reforms (continued)PFM Reforms (continued)

Major PFM Reforms: Policy & Operational

Reforms in Budgeting and Expenditure Control(RIBEC), Financial Management Academy ( FIMA),Reforms in Govt Audit ( RIGA)- DFID

Strengthening the Office of Comptroller and

Auditor General (STAG) UNDPISMOF & EEFM- ADB

Strengthening GOBs FM Capacity and BuildingInstitutional Capacity of the Office of the C & AG -World Bank

Development Support Credit I, II and III- WorldBank

ROSC Fiscal Transparency IMF and

Financial Management Reform Program FMRP

(DFID & Dutch)


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PFMPFM --Lessons from HarmonizationLessons from Harmonization

Lack of common understanding and propercoordination among various Ministries andGovt Departments

Differing Development Assistance Strategy byDonors

PFM priorities often not synchronized and lost


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HarmonizationHarmonization-- Broad PictureBroad Picture

PEDP II: 10 donors under one implementation Framework-ADB leads

Common PFM system (Reporting and Auditing)

Multi- lateral donors like WB and ADBharmonized individual requirements ( CommonWithdrawal Application, audit reporting period)

Agreed FM Improvement Plan


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HarmonizationHarmonization-- Broad Picture (continued)Broad Picture (continued)

HNPSP:Pool and Non Pool Donors under common PFMsystem - WB leads

NO PIUs ; No Special Account

Govt spent first including donors share

Agreed Audit TOR with C & AG

Common Audit and Reporting

Strengthen FM Framework includingimprovement plan for the Sector

Alignment of donor assistance on PFM along with

GoB priority plans, PRSP, ROSC, CAS, PERPFM Task Force a common platform by donors andGovt led by MOF

An Aid Governance Group (ERD) consisting of Donorand Govt Country Harmonization Action Plan


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Challenges :Challenges :

DPs and GOB work under an uniformdevelopment assistance strategy for PFM

Progress Monitoring mechanism and timelyadjustments of action plan

More Flexibility and Simplification of DPs FMpolicy and procedures to achieve bettercountry outcome

More awareness on the value addition on

Harmonization and Alignment Approaches More delegation of responsibility and

authority at country level


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Procurement Reform: backgroundProcurement Reform: background

Low Level ofpublicprocurement

performanceconstrainednational

development

The CountryProcurementAssessment Report(CPAR) identifiedKey deficiencies inthe public

procu

rement system


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CPAR Findings & Recommendations (2001):CPAR Findings & Recommendations (2001):

Opaque public procurement practices are the singlemost serious issue affecting whole public sectorsactivities

Set up a Public Procurement Policy Unit

Issue Public Procurement Rules

Streamline Proc. Process & Financial Delegation

Develop Procurement Management Capacity Publish Contract Awards

Introduce Appeal Procedures


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Proc. Reform & AchievementsProc. Reform & Achievements

DSC II & DSC III

Procurement Law & Performance triggers

IDA Credit : August 2002 / ~ $5 million/ 3 years

Bangladesh now has a transparent public procurement regulations,accepted by most DPs

Established permanent procurement policy unit

Mandated harmonized procurement regulations & STDs

Publishing contract awards

Mandated annual procurement review (audit)

Mandated independent appeal procedures for protests

Streamlined financial powers & proc. approval process

Developed national trainers & Institutionalizing capacity


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Contributions to HarmonizationContributions to Harmonization

Aid Governance Group- ( ERD) Harmonizing Govt andDonors procurement requirement along the Procurement

Regulations

Primary Education Development Program II

Countrys own harmonized procurement regulations forall local procurement (10 DPs & GOB agreed)

Local- 85% of procurement in PEDP II.

All local procurement from common pool (DPs)

Annual procurement review (audit) as per GOB Proc.Regulations (by independent consultant)

HNPSP:

Harmonized Procurement Procedures & agreed plan for all

local procurement


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Contributions to HarmonizationContributions to Harmonization

Seven IDA funded projects including other DPSusing Government Regulations for all localprocurement

Piloting use of PFM framework for procurement aspart of PFM baseline and performance indicators

Integrated analytical review of procurement withPFM and Public Expenditure group- World Bank,

DFID and ADB

Centralized MIS in CPTU/IMED (using aboveindicators) for effective monitoring of procurementoutcomes and performance (CPTU Website:cptu.gov.bd)


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F

uture ChallengesF

uture Challenges

Compliance Monitoring of ProcurementReform

Roll out the capacity building across thecountry institutions including private sector

Piloting E-procurement

Mindset and Behavioral change by all parties

and Sustainability of already established CPTU

and corresponding strengthening of IMED.

bangladesh's experience - public financial management and procurement

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