E-PROCUREMENT STRATEGY LAUNCH

Keynote Address ‘’On best Practices for Implementation of e-government initiatives in Uganda with a focus on e-procurement’’

Public Procurement and Disposal of Public Assets Authority (PPDA), 10/12/ 2014

Venue: Katonga Hall, Serena Hotel, Kampala, Uganda

Professor Venansius Baryamureeba, VC UTAMU, barya@utamu.ac.ug

What is E-Government?

• “E-Government is an ongoing process of transformation of Government towards the provision of government services (information, transactions) through electronic means, including access to government information and the completion of government transactions on an ‘anywhere, anytime’ basis.”

• PricewaterhouseCoopers

What is e-government ?

It is the

transformation of government

to provide

Efficient

Convenient &

Transparent

Services

to

the Citizens & Businesses

through

Information & Communication Technologies

What is NOT e-Government ?

e-Government is not about ‘e’

but about government !

e-Government is not about computers & websites

but about citizens & businesses!

e-Government is not about translating processes

but about transforming processes !

What do leading nations aim in eGov?

• Interactive Public Services

• Public Procurement

• Public Internet Access Points

• Broadband Connectivity

• Interoperability

• Culture & Tourism

• Secure G2G Communications

The economic benefits of E-government

• Improve efficiency

and quality

• One-stop-shop

service delivery

• Cost effectiveness

• Promote wider

adoption of e-

commerce6

Policy Objectives of E-Government

Web site for information dissemination

7

Electronic submission of information

Department-based interactive services

Integrated portal site to deliver one-stop shop

services

Road map to E-Government

To develop the necessary information infrastructure

To adopt proper IT management practices

E-government initiatives

Training Culture

8

Top level commitment

High level implementation mechanism

The E-Government Strategy

Limitations of the Manual Procurement System

•Delay in issue of tender schedules to Vendors

•Disadvantage for geographically spread bidders to participate

•Physical request / threats to bidders

•Risk of Tender Boxes at Multiple locations

•Delays in finalization of tenders

•Human interface at every stage leading to loss of objectivity

•Lack of Transparency

What is e-Procurement ?

It’s a collaborative procurement of goods, works and services using electronic methods in every stage for bringing in efficiency & transparency

Objectives of e-Procurement

• To act as the catalyst for procurement reform

• To enhance transparency, monitoring and control in procurement process

• To bring in economies of scale through aggregation of demand

• To reduce cost of doing business for both government and suppliers

• To establish level playing field and “fair” competitive platform for the suppliers

Components of a typical e-Procurement System

Indent

ManagementE-Tendering

E-Auctions

Contract

Management

Catalogue

based

Procurement

e-Procurement Scenario

e-Procurement

SystemSuppliers

Consultants

Buyers

Logistics

SystemsContractors

Payment

Systems

The Buy-side

Issue Approach

Complexity of Procurement Procedures

Procurement Reforms

Wide Range of items to be procured

-Goods

-Works

-Services

•Conduct an ABC Analysis

•Select ‘A’ items initially

Organizational Resistance Change Management

Lack of IT Skills among employees Training

Lack of resources within Government

Public-Private-Partnership (PPP)

The Sell-side

Issue Approach

Difficulties in changing over to new systems of tendering

Supplier adoption

Low levels of technological skills

•Training

•Help Desk

Difficulties in access to site E-Procurement help centres

Resistance to change Change Management

The ‘e-Procurement system’ side

Issue Approach

Difficulties in establishing & maintaining the system

By sharing responsibility through PPP

Lack of Financial resources for maintenance & transaction handling

•Designing appropriate business model

•Levy of service charges

Concerns of

• Confidentiality of bids

•Authenticity of bids

Digital Signature Certificates

Varying requirements of Multiple Departments

•Process Reforms

•Standards-based system

Major Challenge Ahead• The 2014 Corruption Perceptions Index for 175 countries and territories

by Transparency International ranked Uganda among the most corruption countries in the world: Rwanda 55th with a score of 49%, Tanzania 119th with a score of 31%, Uganda 142nd with a score of 26%, Kenya 145th with a score of 25% and Burundi 159th with a score of 20%. Rwanda was the least corrupt in EAC.

• The major corruption scandals in Uganda mainly include: corruptly procuring tenders, diversion of public resources, bribery of public officials and corrupt transactions with agents.

• Max of 25% variation in procurement contracts provides some room for some officers to engage in corruption

• Uganda is still ranked low in terms of global competitiveness, i.e. the global competitive index 2013-2014 ranked Burundi 146th, Uganda 129th, Tanzania 125th, Kenya 96th, and Rwanda 66th out of the 148 countries ranked globally.

• Government officers will do everything possible to fail e-procurement => Efficiency and Transparency

• Good Luck!! END