1. CONTRACT MONITORING COALITIONS: LOWERING PROCUREMENT RISKS Robert Hunja, WBI

2. According to the OECD, on average globally, procurement accounts for 70% of the overall national budget.

3. Procurement Failures

4. The Cost of Procurement Failures The costs of poor governance of the Roads sector can range from 10% - 40% of sector expenditures annually. TI estimates that at least $400B is lost to corruption in public procurement, adding 20% - 25% to costs. WHO estimates 25% of drugs consumed in poor countries are counterfeit or substandard.

5. The Power of Contract Monitoring Government Civil society Private Sector Monitoring Coalition More efficient use of resources and better service delivery for citizens through more transparent and participatory procurement processes. Observation of awarding processes Advocacy for reforms (e.g. Procurement Acts, Access to Information) Monitoring of contract implementation

6. Emerging Monitoring Coalitions Coalitions in Ghana, Sierra Leone, Liberia, Nigeria on Extractive Industries, education and construction. Advanced coalitions in Philippines, Cambodia, Indonesia, Mongolia. Emerging coalitions in Bangladesh, Pakistan, India, Sri Lanka. Expansion to Uganda, Zambia, Kenya, Tanzania, Rwanda with construction and pharmaceuticals.

7. Philippines Tracked bidding in 23 agencies with 36 observers 34 CSOs inspected text book delivery New Procurement Reform Act Development funds of 91 local government unit monitored

8. Liberia Strong procurement law but implementation challenges. Public Procurement Agency (PPCC) has 9 monitors and 2 vehicles. Challenge:Contract Monitoring: Coalition formed among PPCC, CSOs and LEITI. Monitoring initiatives include: PPCC partners with Cental (local TI chapter) and other CSOs to monitor education sector. Planned: Community monitoring of mining contracts, including development of more ‘user- friendly’ version of mining agreements. Financed by IDF grant and WB operations.

9. OPPORTUNITY FOR WORLD BANK COALITIONs monitor WB projects observe WB procur- ement advocate for reforms improve access to information

10. How WBI Can Help You Monitoring coalition in three regions Processes to incubate country coalitions Contract monitoring tools Global ProAct network

11. www.pro-act.org  Over 100 procurement practitioners  Blogs and discussion groups, including on contract monitoring  Best practice examples and tolls  Global calendar of events  Job opportunities

12. Thank you! Email: Rhunja@worldbank.org Phone: 202 473 4316