PROCUREMENT IN PRSCs – Case of Uganda March 24-28, 2008 Playing a Key Role in achieving the...

PROCUREMENT IN PRSCs – Case of Uganda

March 24-28, 2008

Playing a Key Role in achieving the Development ResultsPlaying a Key Role in achieving the Development Results

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Summary of Presentation

PRSC Instrument Procurement in PRSCs Action items and triggers in terms of procurement - good

practice What have we achieved in procurement as a result of

PRSCs? To what extent have PRSCs helped in the procurement reform agenda

Issues to be highlighted and lessons learnt Any issue for policy consideration

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Poverty Reduction Support Credit (PRSC)

A Development Policy Credit Supports Policy and Institutional Reforms Reforms set up in multi-year matrix with results

focused indicators and progress benchmarks for monitoring the overall implementation

Most critical actions made “prior actions” before presentation of credit to the Board

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Procurement in PRSCs

PRSC presents a critical forum to discuss design and implementation of procurement reforms

It is a strong instrument to enforce and monitor implementation of procurement reforms

It is the most appropriate instrument to address cross-cutting sector issues such as pay reform and corruption

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Procurement in PRSCs contd..

Uganda was one of the two countries that pioneered the first PRSCS in 2001

Procurement was one of the sectors identified for reforms

The reforms would be designed and implemented in a multi-year framework

Implementation of Procurement Reforms designed in the first PRSC still being implemented, will continue under the 7th PRSC, now being processed for presentation to the Board, and beyond

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Procurement Reforms under PRSCs

Underlying Principles PARADIGM SHIFT FROM “RETAIL” PROCUREMENT

REVIEW TO “WHOLESALE REFORMS” Ownership Commitment Partnership

In Uganda PRSC provided a forum for multi-sector discussion of procurement reforms

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Action Items and Triggers in Terms of Procurement - Good Practice

There were two categories of actions agreed during the 7 PRSCs: Actions required for designing the procurement reforms Actions required for implementing the reforms

In order to ensure that the Government takes the agreed actions, triggers in the form of prior actions were agreed as conditions for Board approval

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Examples of Action Items and Triggers in Terms of Procurement - Good Practice (contd.)

PRSC 1 PRSC 2 PRSC 3 PRSC 4

Minister of Finance has issued new procurement regulations for ministries, departments and agencies.

TRIGGER

Minister of Finance tables Procurement Bill in Parliament.

TRIGGER

Minister of Local Government (MoLG) has harmonised local government procurement regulations with central government

By May 2004 the MoLG will have submitted to Cabinet the draft Local Government Regulations & Disposal of Assets Regulations and proposals to amend the Local Government Act, particularly on those issues relating to the appointment and removal of the tender board members TRIGGER

Minister of Finance establishes a new reformed Central Tender Board (RCTB) and contract committees are created in all procuring ministries, departments and agencies.

Ministry of Public Service has issued instructions to procurement entities (ministries, departments, agencies) to establish procurement units

Procurement units are created in all procuring ministries, departments and agencies.

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Examples of Action Items and Triggers in Terms of Procurement - Good Practice (contd.)

PRSC 1 PRSC 2 PRSC 3 PRSC 4Procurement plans are incorporated in sector expenditure programs in health, education and water/sanitation.

Procurement plans are incorporated in all sector expenditure programs

RCTB has published the first quarterly report of contracts awarded costing more than US$200,000.

RCTB has published the First Annual Report

RCTB has published the Second Annual Report

RCTB has held accounting officers of procurement entities responsible for procurement functions

New RCTB carries out independent procurement audits covering at least 20% of the value of procurement in education, health and water/sanitation

RCTB carries out independent procurement audits covering at least 20% of the value of procurement at Central Government and 30% of the districts

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What have we achieved in procurement as a result of PRSCs?

Through the PRSCs, the following actions were implemented First CPAR was carried out under PRSC 1 in 2001 and the second was

carried out under PRSC 4 in 2004 Central Tender Board was abolished in 2001 Procurement Regulations based on the organic Finance Act introduced in

May 2001 Reformed Central Tender Board (RCTB) was established as a regulatory

body in May 2001 Procurement Approval decentralized to Contract Committees at Procuring

Entity level Procurement Units created in Procuring Entities A new Procurement Law was enacted in December 2002 and became

effective in February 2003 Procurement Regulations based on the Procurement Law promulgated in

2003

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What have we achieved in procurement as a result of PRSCs? (contd.)

Under the Procurement Law, a new Regulatory Authority was established (Public Procurement and Disposal of Public Assets Authority – PPDA) to replace the Reformed Central Tender Board

A Procurement Cadre was established in the Civil Service Scheme

A Capacity Development Strategy was prepared and is currently under implementation

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Procurement aspects of Local Government Law have been harmonized with the Procurement Law through revision of the Local Government Law

Regular procurement audits are being carried out Capacity building is going on in earnest

The above achievements were only possible because Procurement was made an integral part of Economic Policy Reforms which have been designed, implemented and monitored under the PRSC instrument. Without this instrument, it is unlikely that the Government would have so easily agreed with the procurement reforms that have taken place.

What have we achieved in procurement as a result of PRSCs? (contd.)

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Main Issues and Lessons learnt at the design stage Buy-in by the Uganda Government – Need to take time to explain

the objectives and benefits of the CPAR Ownership of the CPAR by the Government – CPAR exercise to be

driven by the government (The Government should be at the driver’s seat).

Participation by Development Partners (DPs) Lack of capacity Lack of interest Confidence of DPs to leave the Bank to handle the exercise Need to take time to explain the objectives and benefits of the CPAR

Funding Need to involve DPs, at least in providing funds for designing reforms

Issues to be Highlighted and Lessons Learnt

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Issues to be Highlighted and Lessons Learnt (contd.)

Main Issues at the Implementation Stage Lack of adequate capacity of the Government and

implementing agency – Need for the Government to use external consultants to assist in the implementation

Lack of political will - Need to have a champion to push through implementation of the reforms

Inadequate Funding – Need to involve DPs in funding implementation of the reforms which they might have financed at the design stage

PROCUREMENT IN PRSCs – Case of Uganda March 24-28, 2008 Playing a Key Role in achieving the...

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