1. SWAPs: Based on Lessons Mainly from Morocco and Zambia
V.S. Krishnakumar
Regional Procurement Manager
March 24-28, 2008
Playing a Key Role in achieving the Development Results

2. SECTOR WIDE APPROACHES (SWAp)
SWAps are characterized by the following, with several advantages:
Country Ownership. Development partners come together to support the government’s own program for the development of a particular sector.
Partnership and Consultation. The government directs the program and coordinates the participation of donors and the involvement of other stakeholders. Partners are committed to openness, consultation, and sharing of information.
Comprehensive Sector Policy Framework. This framework typically includes a medium-term (five years) strategy articulated in a program of specific interventions for the short term (two to three years).
Expenditure Framework and Resource Envelope. Derived from the sector policy framework and integrated into the government’s overall medium-term expenditure framework, the expenditure framework and resource envelope identify prioritized activities and plans. Donor resources are channeled increasingly through government systems.
Uniform implementation Structures and Procedures. As circumstances permit, partners aim to synchronize their own processes through joint appraisal, programming, review, and monitoring and evaluation. There is an emphasis on using and strengthening government institutions, procedures, and staff, rather than establishing parallel systems. The aim is to have a single reporting and auditing system for all activities in the sector.
Playing a Key Role in achieving the Development Results

3. SECTOR WIDE APPROACHES (SWAp)
Context and Brief Background:
The framework on the fiduciary arrangements under SWAps approved by the Bank Board in April 2002;
This paper introduced special procedures for applying the Bank’s financial management, procurement, and disbursement policies when it participates in SWAps.
SWAps do not mean “Pooling” of Funds.
These procedures allow the pooling of Bank funds (under specific circumstances) with those of the government and other donors participating in SWAps.
Playing a Key Role in achieving the Development Results

4. SECTOR WIDE APPROACHES (SWAp)
Procurement Capacity and Risk Assessments
Country Specific – CPARs
Sector Specific
Action Plans to Strengthen Capacity
Procurement Improvement Action Plans to Mitigate Risks
Prior Review of Procurement Documents and Decisions based on the Capacity and Risk Assessments
Low Threshold for High Risk
High Threshold for Low Risk
Prior Review – Technical Assistance and ex-ante Oversight
Performance Improvement; Risk Reduction – Scope for Adjusting the Prior Review Thresholds
Playing a Key Role in achieving the Development Results

5. SECTOR WIDE APPROACHES (SWAp)
Independent procurement audit at the Year end.
Focus on the assessment of the Ministry's current procurement capacity, based on the quality of procurement work performed in the first year -- the evidence of emerging procurement capacity through the quality of documents submitted for prior review, and the evidence of the post-review.
Re-assessment of the level of risk. With successful capacity-building efforts >>> Lowering of the risk rating >>> Raising of prior-review thresholds.
As the capacity improves >>> the threshold rises >>> the number of contracts subject to prior review falls.
Playing a Key Role in achieving the Development Results

6. SECTOR WIDE APPROACHES (SWAp)
Use of International Procurement Procedure and Selection of Consultants:
Bidders competing under international procedures value the assurance of transparency and level playing field provided by International Competitive Bidding (ICB).
The threshold above which ICB is required would be set to take into account the capacity and competitiveness of local contracting or manufacturing/Supply Industry. Not to be confused with Prior Review Thresholds
In many SWAps, pool donors have agreed to the Bank ICB procedures for all international bidding And Selection of Consultants (e.g. Ghana, Zambia, Malawi, Burkina SWAps) - in such cases there is one common pooled account for both ICB and NCB activities.
The Memorandum of Understanding (MoU) captures the Common Understanding of All Cooperating Partners, including the Government
Playing a Key Role in achieving the Development Results