WTO/WORLD BANK REGIONAL WORKSHOP ON PROCUREMENT REFORMS AND TRANSPARENCY IN PUBLIC PROCUREMENT Dar es Salaam, Tanzania 14 - 17 January 2003

1
WTO/WORLD BANK REGIONAL WORKSHOP ON PROCUREMENT
REFORMS AND TRANSPARENCY IN PUBLIC
PROCUREMENTDar es Salaam, Tanzania 14 - 17
January 2003

• Session 6 - Work of the
• WTO Working Group on
• Transparency in Government Procurement
• by
• Kodjo Osei-Lah
• WTO Secretariat

2
Presentation focus

• Twelve Elements of a Possible Transparency
  Agreement
• Focus of this presentation Items II VII, IX
• Aspects of Principles of Transparency and the
  work of the Working Group (WG) on elements of a
  future agreement on transparency in government
  procurement

3
List of Elements Covered Items II VII IX
Item II Procurement Methods
Item III Publication of Information on National Legislation and Procedures
Item IV Information on Procurement Opportunities, Tendering and Qualification Procedures
Item V Time Periods
Item VI Transparency of Decisions on Qualification
Item VII Transparency of Decisions on Contract Awards
Item IX Other Matters Related to Transparency
4
Item II

• Procurement Methods

5
Item II Procurement Methods

• Three broad categories generally identified
• Public or open tendering
• Selective tendering
• Limited tendering, e.g. direct contracting,
  single source procurement
• Transparency principles in relation to selection
  of procurement method
• Transparency in choice of appropriate method
• Transparency in use of less transparent methods,
  e.g. limited tendering

6
Procurement Methods - 2

• Issues raised
• Flexibility in use of different procurement
  methods
• Limited tendering whether conditions of use fall
  within or outside the scope of a TGP Agreement
• Suggestions for post-award publication of
  information on limited tendering when used
• Administrative burden/cost

7
Item III

• Publication of Information on National
  Legislation and Procedures

8
Extant publication requirements

• GATT 1994 Article X GATS Article III
• Laws, regulations, judicial decisions,
  administrative rulings
• GPA Article XIX
• Relevant laws, regulations, judicial decisions,
  administrative rulings, and procedures on
  government procurement
• National practices
• National constitutions, procurement laws,
  regulations, various horizontal laws guidelines

9
WG Discussions

• Two main issues
• Type of information
• Mode of provision
• Type of Information What should be provided?
• Publication/public accessibility of relevant laws
  regulations
• Other laws/instruments, e.g
• specific procurement laws,
• relevant administrative rulings
• policy guidance
• judicial decisions
• Changes or amendments to the above
• Issues raised publication obligations onerous
  and costly

10
How information should be made available

• Requirement is for accessibility information can
  be printed, electronic or both
• Publication of information
• In national language WTO language optional
• Levying of fees - views expressed
• To be non-discriminatory and
• Limited to cost of publication
• Consideration also to be given to cost of
  creation (of information), and recovery thereof
  in fees
• Cost impact and administrative burden on
  developing countries

11
Enquiry Points

• Existing instruments requiring establishment of
  national enquiry point for information
• GATS Art III4, IV2, IV3
• GPA Art V11
• Should a TGP agreement have provisions on
  establishment of enquiry points?
• Purpose provision of info on national
  legislation, etc
• Case of decentralised procurement systems

12
Item IV

• Information on Procurement Opportunities,
  Tendering and Qualification Procedures

13
Main Issues and Approaches in WG

• Main issues
• Prior availability of information
• Sufficiency of information
• Approaches raised in WG discussions
• What should be the content of information?
• Nature of provisions in an agreement on prior
  information that should be provided
• stipulated list of minimum requirements?
• illustrative list of prior information?
• general guiding principles only?

14
Approaches, contdMaking Information Available

• Approaches, contd
• Possible minimum content of information
• National preferences
• outside scope of a future transparency agreement
• nevertheless, relevant prior information to be
  provided
• Making information available
• Through publication, or
• Publishing via an accessible source
• Media printed or electronic or both

15
Selective Limited Tendering

• Case of selective or limited tendering
• Certain basic types of information to be
  provided?
• Prior information requirements otherwise to apply
  to open tendering?
• Small-value procurements
• to be exempted from information requirements?
• Administrative burden/cost

16
Item V

• Time Periods

17
WG Discussions

• General Considerations
• Significant variations in national
  practices/legislations
• Due regard to be accorded to type of procurement
• Minimum or harmonised time periods not to be
  prescribed
• Possible criteria
• Sufficient/reasonable time to prepare / submit
  bids
• Non-discrimination in application of time periods

18
Issues and points made in WG

• Clarity / certainty of term sufficient time
• Time periods to be specified in tender notices
• Any changes to time periods made known /
  generally accessible
• Whether time periods relate to transparency

19
Item VI

• Transparency of Decisions on Qualification

20
Main Issues in WG Discussions

• Two main issues
• Transparency of qualification criteria
• Provision of information on decisions
  registration lists
• Criteria to be
• pre-established and pre-disclosed
• provided in sufficient time
• Changes advised to suppliers, in
  non-discriminatory manner
• Content or substance of qualification criteria
• outside scope of a TGP?

21
Main Issues - 2

• National preferences in favour of domestic
  suppliers (see also Item VII)
• Outside scope of a transparency agreement
• However, any preferences to be applied in
  non-discriminatory manner
• Qualification systems
• To be open to all eligible suppliers in
  non-discriminatory manner
• Open to new suppliers
• Provision of information on qualification
  decisions
• Public accessibility of information
• Provision to all participating suppliers

22
Item VII

• Transparency of Decisions on Contract Awards

23
Elements in international instruments

• Three broad elements
• Transparency of Criteria
• Receipt and opening of tenders
• Ex post information on contract awards

• Transparency of criteria
• Objectivity
• Evaluation of tenders
• Participation of Suppliers
• Award of contracts

24
International Instruments - 2

• Receipt opening of tenders
• Regularity/impartiality of procedures
• Corrections alterations
• Negotiation
• Confidentiality
• Clarifications

• Ex post Information
• Provision
• Timing
• Content
• Confidentiality

25
WG Discussions - Transparency of criteria

• Broadly in line with international instruments.
• Issues raised
• A TGP agreement not to set out criteria
• Flexibility required, e.g. on
• negotiations, force majeure
• Should content of specification be addressed in a
  TGP agreement?
• Advice received on development of specifications
  
• to be pre-disclosed or supplier barred

26
Receipt opening of tenders

• WG discussions broadly consistent with
  international instruments
• Issues raised
• Entities to have procedures to guarantee
• regularity
• impartiality
• Whether setting of detailed procedures within
  ambit of work of WG?
• Procedures to be transparent

27
Ex post information

• Provision of ex post information - Options
• In accordance with national legislation
• Minimum content of information
• Illustrative list
• Debrief opportunity for unsuccessful suppliers
• At discretion of procuring entity
• Publication of information - whether
• All cases or less transparent procurement only
• Issues of cost/administrative burden raised

28
Item IX

• Other Matters Related to Transparency

29
Item IX Other Matters

• Maintenance of records
• Provides audit trail, basis of accountability
• Type, form and duration of information maintained
  
• Should an agreement have provisions on above?
• Information technology
• Low cost, uniform access to information for
  suppliers
• However, possible technology barrier to some
  suppliers in developing countries e.g. SME
• Best endeavours provision?

30
Other Matters - 2

• Language
• Information on procurement opportunities to be
  made in Members official language
• Certain information in a WTO language?
• Fight against bribery and corruption
• Possible impact of transparency on reducing
  bribery and corruption
• However, outside scope of WG work?
• To be dealt with through national legislation?

31
End Note

• A brief account of the state of discussion in the
  WG
• For further information
• See WTO document pack available at this workshop
• Visit WTO website www.wto.org

32
Abbreviations Acronyms