Argentina – SEPA

Andrés Mac Gaul (LCSPT)

Fiduciary Forum 2008

Origin of SEPAFAP CMU Initiative

• Increasing CAS Fiduciary Requirements (100% Investment Lending)

• Fiduciary Issues in Bank Funded Operations, including indications of collusion in civil works.

• Country weak control environment

FAP Main Components

1. SEPA: web-based information system providing the public with easy access to detailed information on all Bank financed contracts

2. Enhanced Bank Fiduciary Monitoring: Integrated Fiduciary Performance Assessments (IFPA); Improved Audit Compliance

3. PMM: Price Monitoring Mechanism for Civil Work Contracts

4. Mainstream of PIUs in cooperation with Government

What is SEPA?

• Innovative, web-based system for planning and monitoring of all Bank-financed contracts, both from a procurement and a project management perspective.

• Website completely open to the public

• Shared information platform upon which the government and Bank teams discuss and negotiate projects’ procurement plans

SEPA Work Flow

Unidad Ejecutora

Plan de

Adquisiciones Via web

Banco Mundial

Provee No Objeción

Sitio Web externo

del SEPAActualiza información sobre

ejecución(insumo periódico)

Datos sobre la Ejecución de los Planes de Adquisiciones

Insumo

Plan de Adquisiciones con comentarios

Solicita Aprobación

SEPA REPORTSSEPA REPORTS

SEPA REPORTS

Project Implementation

1.Planned Amount / Project Amount

2.Committed Amount / Project Amount

3.Paid Amount / Project Amount

4.% of Compliance with Annual Procurement Plan

SEPA INDICATORSSEPA INDICATORS

Procurement

1.Efficiency. Time between advertisement and contract signature

2.Cost Estimates Reliability. Price Deviations (Actual Contract Prices vs. Cost Estimates)

3.Competitiveness. Number of bids received.

.

4.Competitiveness. Closeness of bid prices.

SEPA INDICATORSSEPA INDICATORS

III. Contract Administration

1. Implementation Efficiency in Implementation: delays in contract completion

2.Deviations in Contract Prices (Variation Orders)

SEPA INDICATORSSEPA INDICATORS

SEPA SEPA IndicatorsIndicators

SEPA – The Health Case

• Sample for an in-deep PPR drawn from the SEPA:

• Lowest Bid Price rejected.

• Same items procured.

• IT procurement

Price Monitoring Mechanism for Civil Works Contracts

• It aims at ensuring that reliable cost estimates be available before each procurement step:

– Procurement Planning

– Bidding Document Submission

– Bid Evaluation

– Possible Rejection of all bids

• It will also provide the SEPA with a price indicators and red-flags tool.

Lessons Learned

• PROS: very useful tool that sets high standards. Possibilities of expansion (i.e., tracking system)

• CONS: possible duplication with other Bank and Government systems.

What has been the impact of SEPA?

Recognition from a wide variety of stakeholders of as a tool aimed to improve transparency in Bank operations

Bank as a facilitator between Civil Society and Government. SEPA information is widely accessible and understood

SEPA software is owned by the LCSOS and it has been shared with others free of cost

Increased demands for replication of SEPA by other financiers (IDB) and by countries (Honduras, Mexico, Colombia, Uruguay, and others).

The longer term goal is that the system would evolve as an international network to ensure the transparency of governmental procurement, irrespective of the source of financing of the procurement.