Voice of the Pros

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

2. 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.” Workshop on Implementing e-GP

3. 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 don’t like the e-Procurement system as • it increases our workload.” Workshop on Implementing e-GP

4. Objectives • Opportunities & Challenges of e for GP • e is a tool to improve GP • Encourage to use e for GP Workshop on Implementing e-GP

5. Agenda • Opportunities • Challenges • Lessons Learned Workshop on Implementing e-GP

6. Agenda • Opportunities • Challenges • Lessons Learned Workshop on Implementing e-GP

7. Benefits of e-GP • Transparency • Efficiency • Economic Development Workshop on Implementing e-GP

8. 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 Workshop on Implementing e-GP

9. 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! Workshop on Implementing e-GP

10. 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 Workshop on Implementing e-GP

11. Government Suppliers Taxpayers Beneficiaries of e-GP • Transparency • Efficiency • Economic Development Workshop on Implementing e-GP

12. 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. Workshop on Implementing e-GP

13. Agenda • Opportunities • Challenges • Lessons Learned Workshop on Implementing e-GP

14. Manage- ment Manage- ment Under- standing Under- standing Policy Policy e-GP Legis- lation Legis- lation Techno- logy Techno- logy Buyer & Supplier Activation Buyer & Supplier Activation Infra- structure Infra- structure Standards Standards e-GP Implementation Government Leadership Workshop on Implementing e-GP

15. Manage- ment Under- standing Government Leadership Policy e-GP Legis- lation Techno- logy Buyer & Supplier Activation Infra- structure Standards Successful e-GP Adoption • Think Big, Start Small • Learn from Others • Assess the Current Situation • Develop a Strategy • Implement the Strategy Workshop on Implementing e-GP

16. Agenda • Opportunities • Challenges • Lessons Learned Workshop on Implementing e-GP

17. 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 Workshop on Implementing e-GP

18. 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 Workshop on Implementing e-GP

19. Lessons Learned: Don’ts • There is no reason to wait! • E-GP is far more than technology! • Don’t mix digital with electronic signature! • Don’t forget the private sector! • Don’t 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 Workshop on Implementing e-GP

20. For More Information www.mdb-egp.org Workshop on Implementing e-GP

21. Thank You! Kleipold@worldbank.org Workshop on Implementing e-GP

22. Back-up slides Workshop on Implementing e-GP

23. Time Savings Source: Intenda Ltd., Pretoria, South Africa, 2003 Workshop on Implementing e-GP

24. 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 Workshop on Implementing e-GP

25. 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. Workshop on Implementing e-GP