João N. Veiga Malta Electronic Government Procurement Program Coordinator Inter-American Development Bank João N. Veiga Malta Electronic Government Procurement Program Coordinator Inter-American Development Bank Multilateral Development Bank e-GP Harmonisation Multilateral Development Bank e-GP Harmonisation

2 ContentsContents  What is e-GP  Why is e-GP important?  Goals of MDBs  Why harmonise?  Journey  Results  Future Directions  What is e-GP  Why is e-GP important?  Goals of MDBs  Why harmonise?  Journey  Results  Future Directions

3  e-GP is the use of electronic information technology (especially Internet) by governments in conducting their procurement relationships with suppliers for the acquisition of works, goods and consulting services required by the public sector.  Management leadership and good Procurement Processes rather than Technology is the key to a successful sustainable implementation.  It is, however, important to differentiate between the holistic approach of an e-GP solution and the more narrow approach of a system.  e-GP is the use of electronic information technology (especially Internet) by governments in conducting their procurement relationships with suppliers for the acquisition of works, goods and consulting services required by the public sector.  Management leadership and good Procurement Processes rather than Technology is the key to a successful sustainable implementation.  It is, however, important to differentiate between the holistic approach of an e-GP solution and the more narrow approach of a system. What is e-GP

4  Solution Vs System  A “ system ” is usually associated with the technical side.  A “ solution ” takes into account other factors (the whole procurement process, human resources, legislation, organisations and management) needed to create an e-GP vision solid enough to make it successful.  Simply applying IT to an inefficient procurement process only increases the inefficiency and risks of the process.  Solution Vs System  A “ system ” is usually associated with the technical side.  A “ solution ” takes into account other factors (the whole procurement process, human resources, legislation, organisations and management) needed to create an e-GP vision solid enough to make it successful.  Simply applying IT to an inefficient procurement process only increases the inefficiency and risks of the process. What is e-GP

5  Government as a driver/enabler for: e-Commerce e-Commerce Standards Standards Economic Growth Economic Growth  Building digital roads of the future – trade routs of the past  Government as a driver/enabler for: e-Commerce e-Commerce Standards Standards Economic Growth Economic Growth  Building digital roads of the future – trade routs of the past Why is it important

6 Goals of MDBs Capacity-building in e-GP targets three key donor objectives for one third of government expenditures GOVERNANCE Transparency Accountability Integrity Public Confidence GOVERNANCE Transparency Accountability Integrity Public Confidence EFFECTIVENESS Efficiency Informed Management Value-for-money Quality Outcomes EFFECTIVENESS Efficiency Informed Management Value-for-money Quality Outcomes ECONOMIC DEVELOPMENT Business development Competitiveness Technological Enablement Market Access ECONOMIC DEVELOPMENT Business development Competitiveness Technological Enablement Market Access e-GP OBJECTIVES e-GP OBJECTIVES

7 e-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-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

8 e-GP Efficiency Potential in LAC  LAC GDP in 2002 approx. $ 2 Trillion (US)  Government procurement > $ 200 Billion  10% saving = $ 20 Billion  20% saving = $ 40 Billion  Public Health expenditure $ 100 Billion  Public Education expenditure $ 76 Billion  LAC GDP in 2002 approx. $ 2 Trillion (US)  Government procurement > $ 200 Billion  10% saving = $ 20 Billion  20% saving = $ 40 Billion  Public Health expenditure $ 100 Billion  Public 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

9 Government Procurement. GDP Procurement 80% transactions < $500 Average 15% Government Procurement - Reality

10  Reduces price of goods & services  Implementation stage 5% - 10%  Expected to stabilise at 10% - 30%  Reduces transaction costs 25% - 90%  Reduces cycle time to purchase  Strengthens fraud control  Strengthens policy compliance  Industry benefits  Increases in productivity – LAC Government driven Benefits of e-Procurement (MARKETPLACE)

11 e-Procurement Financial Management System Government Portal Systems Integration Gov Payments Asset Disposal Shared Infrastructure Business Community Efficiency

12 e-GP Promotes e-Commerce  Domestic Trade  Regional Trade  Global trade  Underpinned by: ICT adoption ICT adoption Common international standards (Authentication & Codification) Common international standards (Authentication & Codification) Regional Cooperation Regional Cooperation  Domestic Trade  Regional Trade  Global trade  Underpinned by: ICT adoption ICT adoption Common international standards (Authentication & Codification) Common international standards (Authentication & Codification) Regional Cooperation Regional Cooperation Domestic Trade Regional Trade Global Trade Economic

13 Why Harmonise? Independent Programs Harmonised 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

14 Tel conf on policy development Development of e-GP Harmonisation E-GP Working Party formed HOP discussions Initial Processes Program Development 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 audit Revision of e-GP deployment factors Tender 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

15 ScopeScope MethodologiesPoliciesVisionKnowledgeResources e-GP Harmonisation 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

16 Results & Activities In-Country Advice Strategic e-GP – An Introduction for Executives Guides & Toolkits Shared online forum Online Education Shared online facility 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 experiences Costings and e-GP development Consistent strategic planning guidance and review Revised & harmonised e-tendering rules All Developed or Delivered Jointly Strong positive responses from client countries

17 e-GP Toolkit – Documents e-GP Strategic Overview e-GP Strategic Planning Guide e-GP Road Map e-GP Readiness Assessment e-GP Standards Framework Requirements Use of e-GP Tendering e-GP Authentication

18 NDF WB IDB ADBG ADB Harmonisation

19 WB IDB EU EBRD ADB Harmonisation

20  Requirements for the use of country e-GP systems: Tendering Tendering Purchasing Purchasing Reverse Auctioning Reverse Auctioning  Acceptance of country e-GP systems for MDB financed operations  Buyer/Supplier activation Guide  Regional workshops - Key issues Authentication, Codification  Continued alignment with other international organisations EU & UNCITRAL  Requirements for the use of country e-GP systems: Tendering Tendering Purchasing Purchasing Reverse Auctioning Reverse Auctioning  Acceptance of country e-GP systems for MDB financed operations  Buyer/Supplier activation Guide  Regional workshops - Key issues Authentication, Codification  Continued alignment with other international organisations EU & UNCITRAL Future Directions

João N. Veiga Malta Electronic Government Procurement Program Coordinator Inter-American Development Bank João N. Veiga Malta Electronic Government Procurement Program Coordinator Inter-American Development Bank Multilateral Development Bank e-GP Harmonisation Multilateral Development Bank e-GP Harmonisation Thank You Thank You