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Multilateral Development Bank e-GP Harmonisation

• João N. Veiga Malta
• Electronic Government Procurement
• Program Coordinator
• Inter-American Development Bank
• JOAOVM_at_iadb.org

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Contents

• What is e-GP
• Why is e-GP important?
• Goals of MDBs
• Why harmonise?
• Journey
• Results
• Future Directions

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What is e-GP

• e-GP is the use of electronic information
  technology (especially Internet) by governments
  in conducting their procurement relationships
  with suppliers for the acquisition of works,
  goods and consulting services required by the
  public sector.
• Management leadership and good Procurement
  Processes rather than Technology is the key to a
  successful sustainable implementation.
• It is, however, important to differentiate
  between the holistic approach of an e-GP solution
  and the more narrow approach of a system.

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What is e-GP

• Solution Vs System
• A system is usually associated with the
  technical side.
• A solution takes into account other factors
  (the whole procurement process, human resources,
  legislation, organisations and management) needed
  to create an e-GP vision solid enough to make it
  successful.
• Simply applying IT to an inefficient procurement
  process only increases the inefficiency and risks
  of the process.

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Why is it important

• Government as a driver/enabler for
• e-Commerce
• Standards
• Economic Growth
• Building digital roads of the future trade
  routs of the past

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Goals of MDBs
e-GP OBJECTIVES
ECONOMIC DEVELOPMENT Business development Competi
tiveness Technological Enablement Market Access
GOVERNANCE Transparency Accountability Integrity
Public Confidence
EFFECTIVENESS Efficiency Informed
Management Value-for-money Quality Outcomes
Capacity-building in e-GP targets three key donor
objectives for one third of government
expenditures
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e-GP Enhances Governance
Governance

• E-records ? Stronger audit trails
  capabilities
• Online processes ? Civil oversight
• Online access ? Business oversight
• Policies online ? Transparency of process
• Contract awards online ? Transparent results

e-GP is sometimes resisted by individual
businesses for precisely these reasons
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e-GP Efficiency Potential in LAC
Efficiency

• LAC GDP in 2002 approx. 2 Trillion (US)
• Government procurement gt 200 Billion
• 10 saving 20 Billion
• 20 saving 40 Billion
• Public Health expenditure 100 Billion
• Public Education expenditure 76 Billion

e-GP generates price savings of 10-30 e-GP
generates transaction cost savings of
25-90 e-GP generates outcome savings through
reduced corruption
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Government Procurement
Government Procurement - Reality
Procurement
Average 15
.
80 transactions lt 500
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Benefits of e-Procurement (MARKETPLACE)

• Reduces price of goods services
• Implementation stage 5 - 10
• Expected to stabilise at 10 - 30
• Reduces transaction costs 25 - 90
• Reduces cycle time to purchase
• Strengthens fraud control
• Strengthens policy compliance
• Industry benefits
• Increases in productivity LAC Government driven

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Systems Integration
Efficiency
e-Procurement
Asset Disposal
Gov Payments
Shared Infrastructure
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e-GP Promotes e-Commerce
Economic

• Domestic Trade
• Regional Trade
• Global trade
• Underpinned by
• ICT adoption
• Common international standards (Authentication
  Codification)
• Regional Cooperation

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Why Harmonise?
Independent Programs
Harmonised Programs
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Development of e-GP Harmonisation
THE FIRST 18 MONTHS
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Scope
e-GP Harmonisation
Methodologies
Policies
Vision
Knowledge
Resources


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Results Activities
Guides Toolkits
Online Education
All Developed or Delivered Jointly
In-Country Advice
Professional Development Networking
International e-GP Conference
e-GP Tutorials
Strong positive responses from client countries
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e-GP Toolkit Documentswww.mdb-egp.org
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Future Directions

• Requirements for the use of country e-GP systems
• Tendering
• Purchasing
• Reverse Auctioning
• Acceptance of country e-GP systems for MDB
  financed operations
• Buyer/Supplier activation Guide
• Regional workshops - Key issues Authentication,
  Codification
• Continued alignment with other international
  organisations EU UNCITRAL

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Multilateral Development Bank e-GP Harmonisation
Thank You

• João N. Veiga Malta
• Electronic Government Procurement
• Program Coordinator
• Inter-American Development Bank
• JOAOVM_at_iadb.org