1. Workshop on Implementing e-GP
Workshop on Implementing Electronic Government Procurement (e-GP) Delhi, India – May 18, The Role of e-GP in Improving Public Procurement Performance Knut Leipold The World Bank
May 18, 2006
Workshop on Implementing e-GP

2. Workshop on Implementing e-GP
Voice of the Pros
“E-Procurement can protect life!”
“You loose some USD 450,000 every day!”
“It allows for increased competition and less fraud.”
May 18, 2006
Workshop on Implementing e-GP

3. Workshop on Implementing e-GP
Voice of the Cons
“Look at this! Not only that we have to use
this E-Procurement system, we even have
to pay USD 12,000 for it this year!”
“We prefer the offline procurement process.”
“We don’t like the e-Procurement system as
it increases our workload.”
May 18, 2006
Workshop on Implementing e-GP

4. Workshop on Implementing e-GP
Objectives
Opportunities & Challenges of e for GP
e is a tool to improve GP
Encourage to use e for GP
May 18, 2006
Workshop on Implementing e-GP

5. Workshop on Implementing e-GP
Agenda
Opportunities
Challenges
Lessons Learned
May 18, 2006
Workshop on Implementing e-GP

6. Workshop on Implementing e-GP
Agenda
Opportunities
Challenges
Lessons Learned
May 18, 2006
Workshop on Implementing e-GP

7. Workshop on Implementing e-GP
Benefits of e-GP
Transparency
Efficiency
Economic Development
May 18, 2006
Workshop on Implementing e-GP

8. Workshop on Implementing e-GP
Transparency
Information on public procurement function
Information on procurement transactions
Compliance
Reduced corruption
Audit trails & institutional memory
Improved quality of public procurement
reporting, monitoring, and management
May 18, 2006
Workshop on Implementing e-GP

9. Workshop on Implementing e-GP
Efficiency
Price decrease
Increased price transparency
Increased competition (!)
Aggregated demand
Lower transaction costs for suppliers
e-Reverse Auctions
Reduced transaction costs
staff, material, workflow
online vs. offline publication
Time is money!
May 18, 2006
Workshop on Implementing e-GP

10. Workshop on Implementing e-GP
Economic Development
Public
Procurement
Government = single largest
purchaser in a national economy
Value of public procurement:
10-15% of GDP
Redistribution of taxpayers’
money
GDP
Private business activation
Infrastructure development
Capacity building
May 18, 2006
Workshop on Implementing e-GP

11. Workshop on Implementing e-GP
Beneficiaries of e-GP
Transparency
Efficiency
Economic Development
Government
Suppliers
Taxpayers
May 18, 2006
Workshop on Implementing e-GP

12. Workshop on Implementing e-GP
What is the Problem?
Objectives of GP:
Open & fair competition
Efficiency
Transparency
Improved quality
Benefits of e-GP:
Open & fair competition
Efficiency
Transparency
Improved quality
E-GP does not replace GP. It is a tool that can improve and reform GP. The challenge is successful e-GP implementation, as it addresses far more than just HW & SW.
May 18, 2006
Workshop on Implementing e-GP

13. Workshop on Implementing e-GP
Agenda
Opportunities
Challenges
Lessons Learned
May 18, 2006
Workshop on Implementing e-GP

14. Workshop on Implementing e-GP
e-GP Implementation
Under-
standing
Manage-
ment
Policy
e-GP
Buyer &
Supplier
Activation
Policy
Legis-
lation
Under-
standing
Infra-
structure
Manage-
ment
Techno-
logy
Standards
Government
Leadership
Legis-
lation
Techno-
logy
Buyer &
Supplier
Activation
Standards
Infra-
structure
May 18, 2006
Workshop on Implementing e-GP

15. Successful e-GP Adoption
Buyer &
Supplier
Activation
Policy
Legis-
lation
Under-
standing
Infra-
structure
Manage-
ment
Techno-
logy
Standards
Government
Leadership
Think Big, Start Small
Learn from Others
Assess the Current Situation
Develop a Strategy
Implement the Strategy
May 18, 2006
Workshop on Implementing e-GP

16. Workshop on Implementing e-GP
Agenda
Opportunities
Challenges
Lessons Learned
May 18, 2006
Workshop on Implementing e-GP

17. Workshop on Implementing e-GP
Lessons Learned: Dos (I)
Have a vision and strategy
Get a Champion on high political level
Get stakeholder buy-in
Develop appropriate legal framework
Establish a Lead Agency
Run an awareness raising campaign
Build capacity
May 18, 2006
Workshop on Implementing e-GP

18. Workshop on Implementing e-GP
Lessons Learned: Dos (II)
Review procurement regulation and processes
Follow international standards
Phased implementation
Select a sustainable business model
Integration (link with other systems)
Strengthen international dialogue
May 18, 2006
Workshop on Implementing e-GP

19. Workshop on Implementing e-GP
Lessons Learned: Don’ts
There is no reason to wait!
E-GP is far more than technology!
Don’t mix digital with electronic signature!
Don’t forget the private sector!
Don’t set unnecessary barriers to the use of e-GP!
E-GP does not solve all public procurement issues!
Decentralized public procurement does not require
decentralized e-GP systems
May 18, 2006
Workshop on Implementing e-GP

20. Workshop on Implementing e-GP
For More Information
May 18, 2006
Workshop on Implementing e-GP

21. Workshop on Implementing e-GP
Thank You!
May 18, 2006
Workshop on Implementing e-GP

22. Workshop on Implementing e-GP
Back-up slides
May 18, 2006
Workshop on Implementing e-GP

23. Workshop on Implementing e-GP
Time Savings
Activity
Paper-based
Web-based
500 A4 pages mailed to 9 suppliers
4.500 pages
1.4 Mb disk space
Preparation of tender
12 hours
0.5 hour
Data capturing – 10 fields per record at avg. 5 characters per field at 0.5 second per character for items and 9 suppliers
125 hours
1 hour
Evaluation and what-if scenarios on records
40 hours
Contract preparation and other documents
8 hours
Total
185 hours
3 hours
Source: Intenda Ltd., Pretoria, South Africa, 2003
May 18, 2006
Workshop on Implementing e-GP

24. Fighting Corruption with e-GP (I)
Reducing fraud and corruption in public procurement:
online disclosure of procurement notices
online disclosure of awarded contracts
open and fair competition
increased compliance with procurement policy
less opportunity for corruptive, collusive, fraudulent, and
coercive practices
Potential for fraud and corruption:
inappropriate application of technology
e-Corruption
May 18, 2006
Workshop on Implementing e-GP

25. Fighting Corruption with e-GP (II)
E-Procurement can reduce opportunity of fraud and corruption in the context of government procurement if
driven by political will
implemented appropriately.
High level of transparency can be achieved at low costs and no need of major changes of the existing legal framework.
May 18, 2006
Workshop on Implementing e-GP