day2 sp4 presentacion-oc-icgfm_miami05122014_marcelarozo_en
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Day2 sp4 presentacion-oc-icgfm_miami05122014_marcelarozo_enTRANSCRIPT
Marcela Rozo World Bank Institute [email protected]
WHY FOCUS ON PUBLIC CONTRACTING?
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Contracts are the core of public investment and the nexus of revenue generation, budget planning, resource management and delivery of public goods. Every service and every project that a government implements requires a contract, such as the construction and maintenance of roads, schools and hospitals; the generation of electricity; the exploitation of natural resources; and the delivery of textbooks and medicines. It is estimated that governments around the world spend over US $9.5 trillion every single year through public investment. Yet, in many countries, resources are vulnerable to wastefulness, mismanagement, inefficiency, and corruption. As a result, governments are less effective, businesses are unable to prosper and citizens don’t receive the services they need.
EFFECTIVE PUBLIC INVESTMENT AND FINANCIAL MANAGEMENT
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Ensuring that public investment and financial management are as successful and as effective as possible requires for a wide range of actors to have as much information as possible, to be able to work together to make the best decisions they can make about investments and to monitor the implementation of those investments.
Open Contracting
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Open Contracting is key to ensuring that public investment and finances are managed effectively and that it leads to the best possible outcomes.
WHAT IS OPEN CONTRACTING?
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Open Contracting is a growing movement focused on enhanced disclosure and participation in public contracting, at all stages of the contracting process, and all types of contracts – funded by national budgets and/or development assistance. The proposition underlying open contracting is that disclosure and participation are mutually reinforcing drivers of accountability and efficiency, and is therefore critical to economic growth and development.
OPEN CONTRACTING PARTNERSHIP
Global Efforts
Global Principles Open Data Standard Evidence Base Communications and
advocacy Knowledge Exchange
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Since 2012, a broad group of organizations and individuals interested in open contracting have joined in the development of an emerging global movement that encourages disclosure and participation in public contracting. One result is the Open Contracting Partnership, a global collaborative effort focused on increased disclosure and participation at all stages of public contracting. The secretariat of the Open Contracting Partnership is currently being hosted by our team at the World Bank Institute, and it includes the participation of the governments of Colombia and the Philippines, as well as the Construction Sector Transparency Initiative (CoST), GIZ, Integrity Action, Oxfam America and Transparency International. As global efforts, the OCP has played a key role in developing a set of Global Principles on Open Contracting and an Open Data Standard on Open Contracting.
FEATURES AT COUNTRY LEVEL
Multi-stake holder collaboration Constructive Engagement Disclosure of contracting data Capacity Building Monitoring and Reporting Institutional Mechanisms for Feedback
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At country level, the OC team supports governments with technical assistance and capacity building on the implementation of open contracting. Some of the features of our work are: Multi-stakeholder collaboration: Multi-stakeholder approach, including central government, local governments, civil society organizations and media, etc. Constructive engagement: between citizens and their government. Disclosure of contracting data: Assisting governments on what data should be disclosed and how it should be disclosed. The result of this feature is the accessibility of contracting data from non-state actors and different areas of government. Capacity building: of CSOs, journalists and citizens on using contracting data in meaningful way (e.g., to monitor ongoing projects or to provide other forms of feedback to government). Monitoring and reporting: Closing the feedback loop – or helping facilitate conditions where citizens can provide feedback to government, for government’s action. Institutional mechanisms for feedback: Institutionalizing policies, agreements, etc. that allow governments to receive feedback from citizens and act on this feedback.
How can Open Contracting improve financial management of public investment?
57 TRILLION*
dollars of Public Investment in Infrastructure between
2013-2030
*Estimate by McKinsey
16.6 TRILLION IN ROADS
PUBLIC INVESTMENT IN INFRASTRUCTURE
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Infrastructure, for example, plays an important role in development, especially when it comes to the construction and maintenance of roads, schools and hospitals. McKinsey estimates that between 2013 and 2030, countries will be spending at least $57 trillion on infrastructure, with spending of $16.6 trillion on roads being the highest (29%) among infrastructure assets. Poor choices about how contracts are negotiated and managed can result in cost overruns, delays and bad road quality. Yet contracting information and the contracting processes themselves are often unavailable for public scrutiny increasing the risks of mismanagement and misappropriation. As a result, governments are less effective and citizens don’t receive the services they need.
AFGHANISTAN Through our partner Integrity Action – Integrity Watch Afghanistan
281 Monitored Infrastructure Projects
83% fix rate
845 monitors
Vital road in the Herat Province that connects Herat to Iran and serves 35.000 people. - Before: Extremely bad quality and
none compliance - After: Road being rebuilt according
to terms of contract
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Let’s take a road project that we are working on as an example to answer that question. In Afghanistan, through our partner Integrity Action, OC is supporting Integrity Watch Afghanistan (IWA) in monitoring the infrastructure projects of the entire country. Out of 281 Monitored Infrastructure Projects in Afghanistan, the fix rate (the rate at which problems in projects are fixed) has reached over 83 percent, with around 845 monitors participating in the process. One of the best examples is a vital road in the Herat Province. The road connects Herat to Iran and serves 35,000 people that live in the province. The road used to be of extremely bad quality and did not comply with the terms of the contract. IWA trained community monitors and facilitated a dialogue between monitors, the responsible companies and local government agencies. As a result of these efforts, the road is now being rebuilt according to the terms of the contract.
Open Contracting help face challenges like Fiduciary risk management Keeping within budget On-time delivery Compliance with specifications Beneficiaries’ satisfaction
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As seen in the aforementioned example, by supporting governments to become more transparent and responsive, and citizens to be able to participate in a more informed and significant manner in decision-making processes, the Open Contracting fosters collaboration between a wide-range of actors to co-create innovate and effective solutions to complex governance challenges. Additionally, Open Contracting helps face challenges like: Fiduciary risk management: Ensuring that the resources are allocated and spent accordingly. Keeping within budget: Bases on initial proposal. On-time delivery: According to the timeline of the contract. Compliance with specifications: Based on terms of the contract. Beneficiaries’ satisfaction: Impact on beneficiaries and in the quality of the delivery of services.
SOME ILLUSTRATIVE EXAMPLES
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Like in Afghanistan, there are many other examples of disclosure (in different sectors) and citizen participation.
