Seventh Regional Public Procurement Forum, May 16 - 19, 2011 ADB Support of Public Procurement Reform Seventh Regional Public Procurement Forum, May 16 - 19, 2011 Presented By: Amr J. Qari, Procurement Specialist

Overview ADB’s Approach To Supporting Public Procurement Reform Recent ADB Initiatives Procurement Partnership Facility Regional e-GP Conference

Public Procurement System ADB’s Approach To Supporting Public Procurement Reforms Public procurement is a complex ecosystem Reforming public procurement laws is only the beginning Reforms should target the capacity, incentives and performance of all players in national procurement system Reforms should be “demand-driven” and context specific ADB can offer a strong platform to its members countries to share best practices, lessons learned and incubate joint initiatives Public Procurement System Suppliers/ Contractors/ Consultants Other Key Stakeholders National Procurement Procedures Law Enforcers/ Judiciary Contracting Agency

Recent ADB Initiative #1: Procurement Partnership Facility Objective: Fund high priority procurement-related project proposals initiated by ADB’s DMCs Round 1: $500,000 (complete) Round 2: $300,000 (to be launched in 4Q 2011) Funding Themes: Supporting procurement reform initiatives and strategies; Developing policies and procedures to strengthen procurement management and performance; Strengthening the role of Civil Society Organizations (CSOs), nongovernment organizations (NGOs), and the private sector through improved procurement transparency and accountability mechanisms; Mainstreaming procurement performance monitoring and oversight through use of procurement audits and similar efforts, and integration of independent monitors such as CSOs and NGOs; and Capacity building and training in areas considered critical for good procurement practices.

Recent ADB Initiative #1: Procurement Partnership Facility Selection Criteria Development Impact Feasibility of time frame and budget Technical and legal capacity to implement Scalability Sustainability Government ownership and contribution

Recent ADB Initiative #1: Procurement Partnership Facility Winning Proposals To Be Funded in 2011: Nepal Pakistan Thailand Proposal Topic Capacity Development for Public Procurement Market Based Construction Cost Data Assessing Procurement Systems and Practices Expected Outputs Training of 300 persons in executing agencies and private sector to increase compliance with Public Procurement Act Development of capacity of Public Procurement Monitoring Authority by (a) identifying appropriate indicators to assess procuring entities that are at risk and (b) design appropriate incentive structure for staff of Public Procurement Monitoring Authority. Expansion of content and functionality of website that houses price data on major construction materials from across the country Content additions to include (i) model BOQ and guidelines and (ii) standard methods of measurements, in line with the international standards Workshops, seminars, and conferences for the capacity building of the users of cost data and other products Report examining why current procurement laws and practices were vulnerable to fraud Actual case studies involving corruption in various types of projects (e.g. highway construction, drug procurement project)

Recent ADB Initiative #2: Asia and Pacific Regional Electronic Government Procurement Conference Conference Objective: Augment e-GP implementation capacity in DMCs Key Themes: How to formulate a business case for e-GP initiatives? What features and functionality should be included in e-GP systems? Which IT platforms are best able to support e-GP? How can change management strategies drive adoption of e-GP systems? What type of regulatory framework is needed to support e-GP systems? Target audience: Public procurement authorities in DMCs and key ministries responsible for e-GP. Secondary audiences will include multilateral and bilateral development institutions, academics, civil society and private sector. Venue: ADB will nominate a DMC to host the e-GP conference Date: November 2011 (exact date to be determined)

Recent ADB Initiative #2: Asia and Pacific Regional Electronic Government Procurement Conference Expected Conference Outputs: “How to Implement e-Government Procurement” guide, which will recommend optimal sequencing of implementation and provide strategies to address common implementation issues (reliability, access, usability etc.) Summary of lessons learned during implementation of e-GP systems

Next Steps ADB’s developing member countries should consider submitting proposals in Round 2 of Procurement Partnership Facility ADB’s developing member countries should complete e-GP survey circulated by ADB by June 30, 2011