SWAPs: Based on Lessons Mainly from Morocco and Zambia

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SWAPs Based on Lessons Mainly from Morocco and
Zambia
V.S. Krishnakumar Regional Procurement Manager
March 24-28, 2008
Playing a Key Role in achieving the
Development Results
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SECTOR WIDE APPROACHES (SWAp)

• SWAps are characterized by the following, with
  several advantages
• Country Ownership. Development partners come
  together to support the governments own program
  for the development of a particular sector.
• Partnership and Consultation. The government
  directs the program and coordinates the
  participation of donors and the involvement of
  other stakeholders. Partners are committed to
  openness, consultation, and sharing of
  information.
• Comprehensive Sector Policy Framework. This
  framework typically includes a medium-term (five
  years) strategy articulated in a program of
  specific interventions for the short term (two to
  three years).
• Expenditure Framework and Resource Envelope.
  Derived from the sector policy framework and
  integrated into the governments overall
  medium-term expenditure framework, the
  expenditure framework and resource envelope
  identify prioritized activities and plans. Donor
  resources are channeled increasingly through
  government systems.
• Uniform implementation Structures and
  Procedures. As circumstances permit, partners aim
  to synchronize their own processes through joint
  appraisal, programming, review, and monitoring
  and evaluation. There is an emphasis on using
  and strengthening government institutions,
  procedures, and staff, rather than establishing
  parallel systems. The aim is to have a single
  reporting and auditing system for all activities
  in the sector.

Playing a Key Role in achieving the
Development Results
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SECTOR WIDE APPROACHES (SWAp)

• Context and Brief Background
• The framework on the fiduciary arrangements under
  SWAps approved by the Bank Board in April 2002
• This paper introduced special procedures for
  applying the Banks financial management,
  procurement, and disbursement policies when it
  participates in SWAps.
• SWAps do not mean Pooling of Funds.
• These procedures allow the pooling of Bank funds
  (under specific circumstances) with those of the
  government and other donors participating in
  SWAps.

Playing a Key Role in achieving the
Development Results
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SECTOR WIDE APPROACHES (SWAp)

• Procurement Capacity and Risk Assessments
• Country Specific CPARs
• Sector Specific
• Action Plans to Strengthen Capacity
• Procurement Improvement Action Plans to Mitigate
  Risks
• Prior Review of Procurement Documents and
  Decisions based on the Capacity and Risk
  Assessments
• Low Threshold for High Risk
• High Threshold for Low Risk
• Prior Review Technical Assistance and ex-ante
  Oversight
• Performance Improvement Risk Reduction Scope
  for Adjusting the Prior Review Thresholds

Playing a Key Role in achieving the
Development Results
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SECTOR WIDE APPROACHES (SWAp)

• Independent procurement audit at the Year end.
• Focus on the assessment of the Ministry's current
  procurement capacity, based on the quality of
  procurement work performed in the first year --
  the evidence of emerging procurement capacity
  through the quality of documents submitted for
  prior review, and the evidence of the
  post-review.
• Re-assessment of the level of risk. With
  successful capacity-building efforts gtgtgt Lowering
  of the risk rating gtgtgt Raising of prior-review
  thresholds.
• As the capacity improves gtgtgt the threshold rises
  gtgtgt the number of contracts subject to prior
  review falls.

Playing a Key Role in achieving the
Development Results
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SECTOR WIDE APPROACHES (SWAp)

• Use of International Procurement Procedure and
  Selection of Consultants
• Bidders competing under international
  procedures value the assurance of transparency
  and level playing field provided by International
  Competitive Bidding (ICB).
• The threshold above which ICB is required
  would be set to take into account the capacity
  and competitiveness of local contracting or
  manufacturing/Supply Industry. Not to be confused
  with Prior Review Thresholds
• In many SWAps, pool donors have agreed to the
  Bank ICB procedures for all international bidding
  And Selection of Consultants (e.g. Ghana, Zambia,
  Malawi, Burkina SWAps) - in such cases there is
  one common pooled account for both ICB and NCB
  activities.
• The Memorandum of Understanding (MoU)
  captures the Common Understanding of All
  Cooperating Partners, including the Government

Playing a Key Role in achieving the
Development Results