João N. Veiga MaltaJoão N. Veiga MaltaElectronic Government ProcurementElectronic Government Procurement

Program CoordinatorProgram CoordinatorInter-American Development BankInter-American Development Bank

JOAOVM@iadb.orgJOAOVM@iadb.org

Multilateral Development Multilateral Development Bank Bank

e-GP Harmonisatione-GP Harmonisation

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ContentsContents

What is e-GPWhat is e-GP Why is e-GP important?Why is e-GP important? Goals of MDBsGoals of MDBs Why Why harmoniseharmonise?? JourneyJourney ResultsResults Future DirectionsFuture Directions

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e-GP is the use of electronic information technology (especially e-GP is the use of electronic information technology (especially Internet) by governments in conducting their procurement Internet) by governments in conducting their procurement relationships with suppliers for the acquisition of works, goods relationships with suppliers for the acquisition of works, goods and consulting services required by the public sector. and consulting services required by the public sector.

Management leadership and good Procurement Processes Management leadership and good Procurement Processes rather than Technology is the key to a successful sustainable rather than Technology is the key to a successful sustainable implementation. implementation.

It is, however, important to differentiate between the holistic It is, however, important to differentiate between the holistic approach of an e-GP solution and the more narrow approach of approach of an e-GP solution and the more narrow approach of a system. a system.

What is e-GPWhat is e-GP

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Solution Vs System Solution Vs System

A “system” is usually associated with the technical side.A “system” is usually associated with the technical side.

A “solution” takes into account other factors (the whole A “solution” takes into account other factors (the whole procurement process, human resources, legislation, procurement process, human resources, legislation, organisations and management) needed to create an e-GP organisations and management) needed to create an e-GP vision solid enough to make it successful.vision solid enough to make it successful.

Simply applying IT to an inefficient procurement process Simply applying IT to an inefficient procurement process only increases the inefficiency and risks of the process.only increases the inefficiency and risks of the process.

What is e-GPWhat is e-GP

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Government as a driver/enabler for: Government as a driver/enabler for:

e-Commercee-Commerce

StandardsStandards

Economic GrowthEconomic Growth

Building digital roads of the future – trade routs of the pastBuilding digital roads of the future – trade routs of the past

Why is it importantWhy is it important

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Goals of MDBsGoals of MDBs

Capacity-building in e-GP targets three key donor objectives for one third of government expenditures

GOVERNANCETransparencyAccountability

IntegrityPublic Confidence

EFFECTIVENESSEfficiency

Informed ManagementValue-for-money

Quality Outcomes

ECONOMIC DEVELOPMENTBusiness development

CompetitivenessTechnological Enablement

Market Access

e-GP OBJECTIVES

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e-GP Enhances Governancee-GP Enhances Governance

E-records → Stronger audit trails & capabilities

Online processes → Civil oversight

Online access → Business oversight

Policies online → Transparency of process

Contract awards online → Transparent results

e-GP is sometimes resisted by individual businesses for precisely these reasons

Governance

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e-GP Efficiency Potential in LACe-GP Efficiency Potential in LAC

LAC GDP in 2002 approx. $ 2 Trillion (US)LAC GDP in 2002 approx. $ 2 Trillion (US)

Government procurement Government procurement > > $ 200 Billion$ 200 Billion

10% saving = $ 20 Billion10% saving = $ 20 Billion 20% saving = $ 40 Billion20% saving = $ 40 Billion

Public Health expenditure $ 100 BillionPublic Health expenditure $ 100 Billion

Public Education expenditure $ 76 BillionPublic Education expenditure $ 76 Billion

Efficiency

e-GP generates price savings of 10%-30%e-GP generates transaction cost savings of 25%-90%e-GP generates outcome savings through reduced corruption

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Government Procurement Government Procurement

.

GDP

Procurement

80% transactions < $500

Average 15%

Government Procurement - RealityGovernment Procurement - Reality

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Reduces price of goods & servicesReduces price of goods & services

Implementation stage 5% - 10%Implementation stage 5% - 10% Expected to stabilise at 10% - 30%Expected to stabilise at 10% - 30%

Reduces transaction costs 25% - 90%Reduces transaction costs 25% - 90% Reduces cycle time to purchaseReduces cycle time to purchase Strengthens fraud controlStrengthens fraud control Strengthens policy complianceStrengthens policy compliance Industry benefitsIndustry benefits Increases in productivity – LAC Government drivenIncreases in productivity – LAC Government driven

Benefits of e-Procurement Benefits of e-Procurement (MARKETPLACE)(MARKETPLACE)

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e-Procuremente-Procurement

Financial Management SystemFinancial Management System

Government PortalGovernment Portal

Systems IntegrationSystems Integration

Gov PaymentsGov Payments Asset DisposalAsset Disposal

Shared Infrastructure

BusinessCommunity

Efficiency

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e-GP Promotes e-Commercee-GP Promotes e-Commerce

Domestic TradeDomestic Trade

Regional TradeRegional Trade

Global tradeGlobal trade

Underpinned by:Underpinned by: ICT adoptionICT adoption Common international Common international

standards (Authentication & standards (Authentication & Codification)Codification)

Regional CooperationRegional Cooperation

DomesticTrade

RegionalTrade

Global Trade

Economic

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Why Why HarmoniseHarmonise??In

depe

nden

t Pro

gram

s Harm

onised Programs

Inconsistent e-GP methodologies

Inconsistent e-GP policies

Country confusion

Duplicate work programs

Scarce resources dissipated

Disparate e-GP programs of MDBs dissipate effectiveness

of capacity-building

Common knowledge base and lessons learnt

Demand from client countries

Pooled planning & resourcing

Integrated work programs

Consistent advice, policies, strategies, pooled resources - more effectiveness in capacity

building

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Tel conf on policy

development

Development of e-GP Development of e-GP HarmonisationHarmonisationE-GP Working Party formed

HOP discussions

Initial Processes

Program Development

Program Execution

Program Execution

Policy Review

Process and Policy

Development

Initial MDB discussions

Release of E-GP Introduction for

Executives

Release of E-GP Standards

Release of E-GP Strategic Planning

Tel conf on International Conference

Launch of shared online facility

Release of Self Assessment tool

Launch of shared online forum

Launch of Roadmap

Development of work program

Development of joint policy areas

Tel conf on security and

auditRevision of e-GP

deployment factorsTender threshold

policy review

Authentication policy

development

Revision of reverse auction policies

Joint MDB e-GP International Conference

Review of MDB vs client country

policies

Strategic Planning

2005

THE FIRST 18

MONTHS

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ScopeScope

Methodologies Policies Vision Knowledge Resources

e-GPHarmonisation

e-GP Working Party

Enhanced Aid Effectiveness:

Institutional Management

Country Program Design

Joint Materials

Communication Strategies, etc

Efficiency in Policy Guidance:

Objectives

Standards

Ownership

Solutions

Designs, etc

Implementation Strategies:

Planning

Tools & Materials

Legislation

Leadership

Business, etc

Lessons Learnt:

HR Strategies

Business Plans

Costs

Timelines

Infrastructure

Signatures, etc

Pooled Capacity:

MDB Budgeting

MDB Program Planning

Joint MDB Projects

Joint Policy Development & Research etc

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Results & ActivitiesResults & Activities

In-Country Advice

Strategic e-GP – An Introduction for Executives

Guides &

Toolkits

Shared online forumShared online forum Online

EducationShared online facility Shared online facility www.mdb-egp.org

Professional Development & Networking

e-GP - A Guide to Strategic Planning

e-GP - A Self Assessment Questionnaire

e-GP – Standards

e-GP Roadmap

International e-GP Conference

e-GP Tutorials

Business case models and pooled experiencesBusiness case models and pooled experiencesCostings and e-GP development Costings and e-GP development

Consistent strategic planning guidance and reviewConsistent strategic planning guidance and review

Revised & harmonised e-tendering rules Revised & harmonised e-tendering rules

All D

eveloped or Delivered Jointly

Strong positive responses from client countries

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e-GP Toolkit – e-GP Toolkit – DocumentsDocumentswww.mdb-egp.orgwww.mdb-egp.org

e-GPStrategic Overview

e-GP StrategicPlanning Guide

e-GP Road Map e-GPReadiness Assessment

e-GP Standards Framework

RequirementsUse of e-GP Tendering e-GP Authentication

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NDF

WBIDB

ADBGADB

Harmonisation

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WBIDB

EUEBRD

ADB

Harmonisation

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Requirements for the use of country e-GP systems:Requirements for the use of country e-GP systems: TenderingTendering PurchasingPurchasing Reverse AuctioningReverse Auctioning

Acceptance of country e-GP systems for MDB financed operations Acceptance of country e-GP systems for MDB financed operations

Buyer/Supplier activation GuideBuyer/Supplier activation Guide

Regional workshops - Key issues Authentication, CodificationRegional workshops - Key issues Authentication, Codification

Continued alignment with other international organisations EU & Continued alignment with other international organisations EU & UNCITRALUNCITRAL

Future DirectionsFuture Directions

João N. Veiga MaltaJoão N. Veiga MaltaElectronic Government ProcurementElectronic Government Procurement

Program CoordinatorProgram CoordinatorInter-American Development BankInter-American Development Bank

JOAOVM@iadb.orgJOAOVM@iadb.org

Multilateral Development Multilateral Development Bank Bank

e-GP Harmonisatione-GP HarmonisationThank YouThank You