1. 2nd Global Procurement Conference | 4-5 July 2017
Approach To the Use of Country Procurement Systems

2. Introduction To the AfDB The New Procurement Framework
Contents
Introduction To the AfDB
The New Procurement Framework
Approach to the use of Country Procurement Systems
Example - Tunisia

3. 1. Introduction to the AfDB Group

4. AfDB Group In Brief Our Clients
Introduction To the AfDB
AfDB Group
African Development Bank
African Development Fund
Nigeria Trust Fund
In Brief
Founded 1964
54 RMCs
27 Non RMCs
Our Clients
Middle-Income Countries
Low-Income Countries
Post-Conflict & Fragile Situations
Capital=USD 95 billion

5. Our Projects
Total Cumulative Approvals
( ) amounts to
131 billion USD

6. Size of Operations

7. Distribution of Contracts By Value (Million USD)

8. Distribution of Contracts By Number

9. 2. The New Procurement Framework

10. Operations Procurement Manual
The Procurement Framework
Board Approval
Policy
Methodology
Operations Procurement Manual
Procurement Toolkit
Management
Approval

11. based on mutually supporting and reinforcing principles of
New Vision
“The Procurement Framework supports Bank financed operations and enhances procurement systems of the Regional Member Countries in order for them to obtain optimal
Value for Money
based on mutually supporting and reinforcing principles of
Economy, Efficiency, Effectiveness and Equity
This is achieved using processes and procedures that are
competitive, fair and transparent”

12. Procurement Principles
Economy
Efficiency
Equity
Effectiveness

13. The Procurement Framework
Principles’ based, and relies in substantial part on the professionalism and maturity of the implementing actors.
Sets undisputable fiduciary standards.
Adopts a risk-based engagement approach to achieve VfM in the contracts financed by the Bank in which the procurement arrangements and the level of fiduciary oversight depend on the quality and performance of the procurement system used for implementation of the project and the complexity of the procurement transaction.
Considers the full use of the Borrower procurement systems for those transactions where the risk of using such systems (including related oversight mechanisms) is not high.

14. 3. Approach To the Use of Country Procurement Systems

15. Full Use of Country Procurement Systems
Stronger Position While Encouraging CPS Reforms
“Building By Using” An Incentive Modulated Mechanism For CPS

16. ? Full Use of Country Procurement Systems
Avoid creation of alternative systems
Country interpretation will be used
Relation will be driven by the Financing Agreement
Rely on F&C mechanisms and institutions in the country
If BPS results in awarding a contract to a sanctioned company, the Bank will not finance this contract.
Risk involved…??? ?

17. Full Use of Country Procurement Systems
82% by number
10% by value

18. Full Use of Country Procurement Systems
80% by number
10% by value

19. Full Use of Country Procurement Systems
65% by number
10% by value

20. Skills Retooling of Bank Staff Required
Advantages / Challenges
Systemic, Advisory & qualitative
Avoid creation of alternative systems
Provide the Bank with more legitimacy to work with RMCs on their procurement reforms;
Better utilization of resources who will do more systemic work;
better ownership of the procurement system to be used by the executing agency; and
saving time with the absence of a second check (after the national entities) of the review by the Bank.
Compliance
& quantitative
Skills Retooling of Bank Staff Required
Compliance
& quantitative
Systemic, Advisory & qualitative

21. Project (Executing Agency)
Full Use of Country Procurement Systems
Assessments at different levels:
Available information
Decision neutral
Results in BPAR/ PDAP
Country Level
Sector Level
Project (Executing Agency)
Transaction
Sector capacity
Market analysis
Capacity
Compliance
Track record
Results in PPRR

22. Deciding on A Procurement System
Risk-based assessment of the Borrower Procurement System
BPSs cannot be relied upon due to risks and other factors
In FCS, emergency situations or when joint co-financing
Use of Borrower Procurement System in FULL
Use of Bank’s PMPS
Use of other internationally accepted Third Party rules and procedures

23. Procurement Oversight
Others (with MOU)
Prior Review
When Using Bank’s PMPs
When Using BPS
Procurement Audits
Post Review
When Using Third Party PMPs
Procurement Reports and Audits
Independent Procurement Review

24. 4. Tunisia - Example

25. Tunisia Example - Rural Water Supply Program
Euro 97 million, includes:
development of new systems and rehabilitation of existing Drinking Water Supply systems in several rural localities in 20 governorates;
the development of stand-alone sanitation systems in unconnected schools; and
institutional support.

26. Tunisia Example – Contd.
All contracts will be done in accordance with Borrower's National Procurement System and using standard templates of Tunisian bid solicitation documents.
The selection of the consultant for the procurement audit will be carried out in accordance with the Bank’s Procurement Framework.
However, the Bank reserves the right to revert the use of BPS if: (i) the legal framework changes to a system unsatisfactory to the Bank; (ii) the provisions in force were not complied with by the implementing agencies, or (iii) the agreed upon risk mitigation measures were not complied with.

27. Tunisia Example – Contd.
Example of the shortfalls identified within the Borrower's procurement system are as follows:
there is no restriction on the participation of public enterprises in public procurement, it is still highly unlikely that a public company will be interested in participating in a contract under this program; and
the contracts concluded between public companies (e.g. Tunisian Electricity and Gas Company (STEG) and the National Water Exploitation and Distribution Company (SONEDE) are awarded by direct contracting for 4 years from the date of their creation.
Lesson Learned Concerning Consulting Services.

28. Thank You
Building today a better tomorrow