2014

Aceptación de sistemas de adquisiciones 2

Paris Declaration – 2005 Donor Harmonization Planning Monitoring & Evaluation Environmental Assessment StatisticsProcurement Financial Management Country Systems Non-Fiduciary Systems Fiduciary Systems 3

Application of the Guide for the acceptance of Country Procurement Systems: Demand driven Not applicable to International Competitive Bidding Based on international best practices: Compliance of the 54 indicators of OECD/DAC methodology; only minor adjustments may be required Rigorous internal review process Advanced/Partial Use Requirements for the acceptance of procurement systems 4

Strategy - Methodology for the acceptance of procurement systems 5 OECD/MAPS Indicators & IDB Criteria for Acceptance Procurement Systems > 90% Indicators → Advance Use< 90% Indicators → Partial Use Bank and Government agree use of Subsystems and Strengthening Plans

6 UCS Process Diagnostics Validation Process Strenghtening Projects Systems under development Systems attain standards Use of Country Systems in Operations

ICB International competitive Bidding NCB National Competitive Bidding Partial or Advanced Use 1 1 Shopping and equivalents (Reverse auction, Framework Agreements) Shopping and equivalents (Reverse auction, Framework Agreements) 2 2 Individual Consulting Services 3 3 Information Systems 4 4 Use of Country Procurement Systems NOT CONSIDERED FOR COUNTRY SYSTEMS Aceptación de sistemas de adquisiciones Bank’s options for Use of Country Systems

More efficient and effective use of Country resources Principales características de la estrategia What does it mean? 8 Planning and reporting Eligibility, prohibited practices International Competitive Bidding May still require exceptions Expected EffectsWhat does not change Lower transaction costs for countries and the Bank More opportunities to deliver effective strengthening Positive impact in project’s execution

Country# ProcessesAmount ARGENTINA67%2% BOLIVIA52%19% COSTA RICA63%22% EL SALVADOR54%42% PERU20%1% PARAGUAY17%6% PANAMA33%37% JAMAICA47%2% BRAZIL79%39% ECUADOR71%35% MEXICO80%59% CHILE93%77% Potential Impact Back Expected impact on Bank-financed operations Source: Procurement Plans projections, December 31st, 2013 These values ​​are preliminary and are subject to fluctuations in the composition of the portfolio  Up to date, the Bank has approved 17 out of 26 countries for Use in IDB-financed operations  4 Advanced  8 Partial  5 Information Systems

Country Procurement Systems validated (Advanced and Partial) Scope Argentina Bolivia Costa Rica El Salvador Jamaica Panama Peru Paraguay Honduras Nicaragua Guatemala Dominican Republic Uruguay Electronic System Goods and services different from consulting services NCB Traditional Shopping Framework agreement Reverse auction Works NCB Traditional Shopping Consulting services Individual Consultants Chile Brazil Ecuador Mexico Use and Monitoring of the country systems Use and Monitoring of the country systems PartialAdvanced IDB Country  Country System used on procurement process  Reports to the Bank on: -Operations -protests (if any) -Changes to the parameters under which systems was validated  Supervision of Process under country systems  Section 1 of Procurement Policies applies to all processes under Country systems  Monitoring use of the system under the parameters in which it was validated

11 Benefits of reforms in Procurement in LAC  The resources involved in public procurement reached on average 15% of gross domestic product of countries, equivalent to US$ 800 Billion annually for the region  Around US$ 560 Billion (70%) is advertised on the Internet  In some countries, the number of bidders in public tenders tripled  Significant savings of public resources in the region, which exceeded US$ 30 Billion in 2012, only in procurement of goods and services  50% of the bids includes sustainable or environmental criteria for both bidders for companies and their products.  The participation of MSMEs in the value the of public procurement market of goods and services doubled, reaching 60%  Delivery times for goods and services procured by public sector entities was reduced by 50%  The number of non responsive tenders decreased by 30%

The NEXT STEPS:  Enactment of procurement law  Plan for operationalization of new regime  Diagnostic of the procurement system  Determination of aspects for use/strengthening activities. The NEXT STEPS:  Enactment of procurement law  Plan for operationalization of new regime  Diagnostic of the procurement system  Determination of aspects for use/strengthening activities. 12 Important next steps for Trinidad and Tobago

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