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Third Annual Stakeholders’ Forum Mauritius, 21 October 2010

Third Annual Stakeholders’ Forum Mauritius, 21 October 2010. Innovative Practices in Procurement – the UNCITRAL perspective. Caroline Nicholas UNCITRAL October 2010. Innovative Practices in Procurement – the UNCITRAL perspective. UNCITRAL Model Law on Procurement – background

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Third Annual Stakeholders’ Forum Mauritius, 21 October 2010

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  1. Third Annual Stakeholders’ ForumMauritius, 21 October 2010 Innovative Practices in Procurement – the UNCITRAL perspective Caroline Nicholas UNCITRAL October 2010

  2. Innovative Practices in Procurement – the UNCITRAL perspective UNCITRAL Model Law on Procurement – background • Model for national procurement legislation • Minimum standards for procurement Who has used it? • economies in transition/developing countries • MDBs – country procurement systems

  3. Innovative Practices in Procurement – the UNCITRAL perspective Objectives of the Model Law • Value for money/economy • Efficiency • Participation, competition • Fair treatment • Integrity and public confidence • Transparency

  4. Innovative Practices in Procurement – the UNCITRAL perspective Reform of Model Law – why? Update the text (1994) • Introduce e-procurement • Apply experience in implementation and use • No change to key principles and features • Consistency with other international texts • Started in 2004, nearly complete • Consensus approach

  5. Innovative Practices in Procurement – the UNCITRAL perspective Reform 1: e-procurement What is e-procurement? • e-publication • e-communications • e-tendering • e-monitoring

  6. Innovative Practices in Procurement – the UNCITRAL perspective Reform 1: e-procurement Why? Better • Value for money • Transaction costs/speed • Protection against corruption Through better • Transparency – more information, more easily available • Participation and competition

  7. Innovative Practices in Procurement – the UNCITRAL perspective Reform 1: e-procurement • Procurement law and e-procurement • Functional equivalence • Technological neutrality • Can the government do e-procurement? • Other laws

  8. Innovative Practices in Procurement – the UNCITRAL perspective Reform 1: e-procurement • Safeguards • Market access • Security, integrity, confidentiality • Safeguards enhance confidence • Don’t apply higher standards than old systems

  9. Innovative Practices in Procurement – the UNCITRAL perspective E-procurement innovations: • e-tendering • Need for standards highest • Mixed systems • Identity management is a key issue • e-reverse auctions • Anonymity vital • Collusion? • Risks of overuse

  10. Innovative Practices in Procurement – the UNCITRAL perspective Achieving benefits of e-procurement • e-monitoring • Redesigning the procurement system • Not a technological issue alone Systemic reform is needed; takes time

  11. Innovative Practices in Procurement – the UNCITRAL perspective Reform 2: framework agreements • What are they? • Benefits • Efficiencies • Risks • Competition • Collusion

  12. Innovative Practices in Procurement – the UNCITRAL perspective Reform 2: framework agreements • UNCITRAL approach – 3 types • Closed framework agreements • With and without second stage competition • Open framework agreements • World Bank and MDBs will use UNCITRAL provisions as standard

  13. Updating the UNCITRAL Model Law on Public Procurement for the Digital Age Reform 3: the ‘toolbox’ approach Procurement methods (updated) • New approach • Primacy of tendering • Justify other methods • All methods available for all procurement • No special services provisions

  14. Updating the UNCITRAL Model Law on Public Procurement for the Digital Age Reform 3: the ‘toolbox’ approach • New and updated methods • Developments in procurement • From rules and compliance • To management and performance • Decentralization and accountability • Supported by standardization • Role of e-procurement • Capacity building is vital

  15. Innovative Practices in Procurement – the UNCITRAL perspective Other major reforms • SME policies • Green procurement • Sustainable procurement • Costs and benefits • Impact of GPA, RTA membership • Vital role of transparency

  16. Innovative Practices in Procurement – the UNCITRAL perspective Review of remedies provisions • UNCITRAL 1994 provisions were • Weak • Optional • Many exceptions • New provisions are • Robust • Mandatory • No exceptions

  17. Innovative Practices in Procurement – the UNCITRAL perspective Conclusions: Implications of reform • Significant investment • Vital role of e-procurement • Political commitment • Capacity issues • Some methods/techniques/tools more vulnerable than others

  18. Innovative Practices in Procurement – the UNCITRAL perspective http://www.uncitral.org/uncitral/en/commission/working_groups/1Procurement.html http://www.uncitral.org/uncitral/fr/commission/working_groups/1Procurement.html THANK YOU

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