Workshop on Implementing Electronic Government Procurement (e-GP) Delhi, India

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Workshop on ImplementingElectronic Government
Procurement (e-GP)Delhi, India May 18,
2006 The Role of e-GP in ImprovingPublic
Procurement PerformanceKnut LeipoldThe World
Bank
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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.

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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 dont like the e-Procurement system as
• it increases our workload.

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Objectives

• Opportunities Challenges of e for GP
• e is a tool to improve GP
• Encourage to use e for GP

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Agenda

1. Opportunities
2. Challenges
3. Lessons Learned

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Agenda

1. Opportunities
2. Challenges
3. Lessons Learned

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Benefits of e-GP

• Transparency
• Efficiency
• Economic Development

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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

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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!

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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

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Beneficiaries of e-GP

• Transparency
• Efficiency
• Economic Development

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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.
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Agenda

1. Opportunities
2. Challenges
3. Lessons Learned

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e-GP Implementation
Government Leadership
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Successful e-GP Adoption

• Think Big, Start Small
• Learn from Others
• Assess the Current Situation
• Develop a Strategy
• Implement the Strategy

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Agenda

1. Opportunities
2. Challenges
3. Lessons Learned

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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

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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

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Lessons Learned Donts

• There is no reason to wait!
• E-GP is far more than technology!
• Dont mix digital with electronic signature!
• Dont forget the private sector!
• Dont 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

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For More Information
www.mdb-egp.org
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Thank You!
Kleipold_at_worldbank.org
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Back-up slides
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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 2.000 items and 9 suppliers 125 hours 1 hour
Evaluation and what-if scenarios on 18.000 records 40 hours 1 hour
Contract preparation and other documents 8 hours 0.5 hour
Total 185 hours 3 hours
Source Intenda Ltd., Pretoria, South Africa, 2003
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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

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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.