European Neighbourhood Policy and SIGMA’s role in public procurement reform Daniel Ivarsson & Olivier Moreau, OECD/SIGMA Marrakesh, 23 April 2013

European Neighbourhood Policy (ENP) and its challenges EU’s best practice for public procurement EU programmes for supporting reform SIGMA and its role; approach to reform SIGMA’s work in public procurement in the region Presentation outline

ENP objectives To promote a stable and prosperous environment in the EU immediate neighourhood To address the wish of EU’s neighbouring countries to deepen relations with the EU To create an area of common values and interests

SOME ENP CHALLENGES Integrate neighbours into the EU Internal Market, spreading its benefits Respond flexibly to country specific needs, recognising they are quite varied Retain and develop intra-regional coop. Give tangible results to past efforts Manage the limited financial and other resources available for supporting reform EU already open – reciprocity expected

DEEP AND COMPREHENSIVE FREE TRADE AGREEMENTS (DCFTAS) Covering all essential sectors as well as fundamental horizontal policies such as  Public procurement  IPR  Competition  Etc. Including a mechanism for regulatory convergence. If sucessful, could lead to  Further market opening in priority sectors  At the end, to full market access in certain sectors

Role of public procurement Essential for the EU Internal Market: a key means to achieve value for money and to create and develop business opportunities Combination of regulatory framework and practical tools for good governance Crucial element of public financial management Channel for administrative capacity building

Governing principles in the EU Treaties and Directives Free movement of goods Right of establishment Freedom to provide services Proportionality Mutual recognition Equality Non-discrimination Transparency

Main points of coordination for regulatory reform Definitions Scope (thresholds; calculation of the value; exclusions) Technical specifications; variants Procedures Advertising/Transparency/Communication Conduct of the procedure (suitability, qualitative selection) Award of the contract Also need for preparation, follow-up!

EU programmes for supporting reform SIGMA TAIEX Twinning

WHAT IS SIGMA?  Support for Improvement in Governance and Management  joint EU/OECD initiative, with EU financing  founded in 1992  to assist beneficiary countries EU candidate countries EU potential candidates EU Neighbourhood countries (since 2008) in promoting and strengthening public governance  Staff: subject specialists, different nationalities with direct experience of public administration

SIGMA’s areas of work  Policy-making and Coordination, Regulatory Management  Civil Service and Administrative Law  Public Finance, including: Budgeting, Financial Management and Control Internal audit External audit  Public Procurement  Strategy Development, Change Management and Implementation

SIGMA’s counterparts SIGMA’s usual counterparts are:  General Secretariats / Government Offices  Ministries of Public Administration  Ministries of Finance  Other ministries (e.g. Justice)  Supreme Audit Institutions  Public Procurement bodies  Parliaments including Budget and Finance Committees

How does SIGMA work? Basis: long term partnership with our counterparts in the countries Short term interventions, e.g.:  Support in preparing strategies and reform plans  Advice in planning larger technical assistance projects  Awareness raising events  Advising and training senior and middle level officials  Peer reviews of specific systems or organisations In accession countries, annual assessments on public governance systems for the EU Policy papers, studies in public governance

© OECD A joint initiative of the OECD and the European Union, principally financed by the EU Service to be delivered Which policy options? Which organisation / coordination? Which regulations and procedures? Which staff, skills and competences? Which HR management? Which financial resources and management? Which delivery mechanisms and partnerships? Which review and control systems? The holistic approach: Which information and communication?

Regional Focus – EU Neighbours Increased emphasis to supporting European Neighbourhood countries East Eastern Partnership - Public Administration Reform Panel, PEMPAL South Fundamental changes in the countries Synergies with OECD/MENA programme Supporting political dialogue and policy discussions with practical assistance Bringing in reform experiences of transition countries from other regions

SIGMA in public procurement: some current examples In Lebanon, support to the Office of the Minister of State for Administrative Reform (OMSAR) in  ToRs, tender planning, criteria selection for a EU TA project for modernisation of PP  Review of the PP development programme In Azerbaijan,  Review a “Standard Operating Procedures” manual for contracting authorities  Various workshops  Proposed Draft amendements for the PPL towards harmonisation with EU law  Analysed the e-procurement architecture / standards & possible developments In Georgia  Conducted a peer review  Benchmarking of national system for e-procurement, concessions, utilities…

SIGMA in public procurement: upcoming activities (tbc) In Morocco,  New draft PP decree at the point of adoption; need for implementation support  Strong demand for advice on PPPs/concessions; need for harmonisation with general PP regulations  Remedies system being revised; need for advice  Knowledgeable central institutions, little cross-institution contact, strong interest in learning from best practice abroad In Lebanon,  To assess where does the PP law meet international standards  To benchmark experience on thresholds  How using procurement for other policy objectives  How drafting a code of conduct for stakeholders Beginning of 2014: ENP Public Procurement Regional Conference to be co- organised with a country tbd

SIGMA in public procurement: looking ahead In Algeria, Egypt, Jordan, Tunisia: what is needed? what other initiatives are around? how could SIGMA usefully move ahead?

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