PROCUREMENT IN PRSCs – Case of Uganda
March 24-28, 2008
Playing a Key Role in achieving the Development Results
PROCUREMENT IN PRSCs – Case of Uganda
Summary of Presentation
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PRSC Instrument
Procurement in PRSCs
Action items and triggers in terms of procurement - good
practice
What have we achieved in procurement as a result of
PRSCs? To what extent have PRSCs helped in the
procurement reform agenda
Issues to be highlighted and lessons learnt
Any issue for policy consideration
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Playing a Key Role in achieving the Development Results
PROCUREMENT IN PRSCs – Case of Uganda
Poverty Reduction Support Credit (PRSC)
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A Development Policy Credit
Supports Policy and Institutional Reforms
Reforms set up in multi-year matrix with results
focused indicators and progress benchmarks for
monitoring the overall implementation
Most critical actions made “prior actions” before
presentation of credit to the Board
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Playing a Key Role in achieving the Development Results
PROCUREMENT IN PRSCs – Case of Uganda
Procurement in PRSCs
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PRSC presents a critical forum to discuss design
and implementation of procurement reforms
It is a strong instrument to enforce and monitor
implementation of procurement reforms
It is the most appropriate instrument to address
cross-cutting sector issues such as pay reform and
corruption
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Playing a Key Role in achieving the Development Results
PROCUREMENT IN PRSCs – Case of Uganda
Procurement in PRSCs contd.
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Uganda was one of the two countries that
pioneered the first PRSCS in 2001
Procurement was one of the sectors identified for
reforms
The reforms would be designed and implemented in
a multi-year framework
Implementation of Procurement Reforms designed
in the first PRSC still being implemented, will
continue under the 7th PRSC, now being processed
for presentation to the Board, and beyond
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Playing a Key Role in achieving the Development Results
PROCUREMENT IN PRSCs – Case of Uganda
Procurement Reforms under PRSCs
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Underlying Principles
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PARADIGM SHIFT FROM “RETAIL” PROCUREMENT
REVIEW TO “WHOLESALE REFORMS”
Ownership
Commitment
Partnership
In Uganda PRSC provided a forum for multi-sector
discussion of procurement reforms
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Playing a Key Role in achieving the Development Results
PROCUREMENT IN PRSCs – Case of Uganda
Action Items and Triggers in Terms of
Procurement - Good Practice
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There were two categories of actions agreed during
the 7 PRSCs:
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Actions required for designing the procurement reforms
Actions required for implementing the reforms
In order to ensure that the Government takes the
agreed actions, triggers in the form of prior actions
were agreed as conditions for Board approval
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Playing a Key Role in achieving the Development Results
PROCUREMENT IN PRSCs – Case of Uganda
Examples of Action Items and Triggers in Terms of Procurement Good Practice (contd.)
PRSC 1
PRSC 2
PRSC 3
PRSC 4
Minister of Finance has
issued new procurement
regulations for ministries,
departments and agencies.
Minister of Finance tables
Procurement Bill in
Parliament.
TRIGGER
TRIGGER
Minister of Local
Government (MoLG) has
harmonised local
government procurement
regulations with central
government
By May 2004 the MoLG will
have submitted to Cabinet the
draft Local Government
Regulations & Disposal of
Assets Regulations and
proposals to amend the Local
Government Act, particularly
on those issues relating to
the appointment and removal
of the tender board members
TRIGGER
Minister of Finance
establishes a new reformed
Central Tender Board
(RCTB) and contract
committees are created in
all procuring ministries,
departments and agencies.
Ministry of Public Service
has issued instructions to
procurement entities
(ministries, departments,
agencies) to establish
procurement units
Procurement units are
created in all procuring
ministries, departments
and agencies.
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Playing a Key Role in achieving the Development Results
PROCUREMENT IN PRSCs – Case of Uganda
Examples of Action Items and Triggers in Terms of Procurement Good Practice (contd.)
PRSC 1
PRSC 2
PRSC 3
Procurement plans are
incorporated in sector
expenditure programs
in health, education and
water/sanitation.
PRSC 4
Procurement plans are
incorporated in all
sector expenditure
programs
RCTB has published the
first quarterly report of
contracts awarded
costing more than
US$200,000.
RCTB has published the
First Annual Report
RCTB has published the
Second Annual Report
RCTB has held accounting
officers of procurement
entities responsible for
procurement functions
New RCTB carries out
independent procurement
audits covering at least 20%
of the value of procurement
in education, health and
water/sanitation
RCTB carries out
independent procurement
audits covering at least 20%
of the value of procurement
at Central Government and
30% of the districts
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Playing a Key Role in achieving the Development Results
PROCUREMENT IN PRSCs – Case of Uganda
What have we achieved in procurement as a result of PRSCs?
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Through the PRSCs, the following actions were implemented
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First CPAR was carried out under PRSC 1 in 2001 and the second was
carried out under PRSC 4 in 2004
Central Tender Board was abolished in 2001
Procurement Regulations based on the organic Finance Act introduced in
May 2001
Reformed Central Tender Board (RCTB) was established as a regulatory
body in May 2001
Procurement Approval decentralized to Contract Committees at Procuring
Entity level
Procurement Units created in Procuring Entities
A new Procurement Law was enacted in December 2002 and became
effective in February 2003
Procurement Regulations based on the Procurement Law promulgated in
2003
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Playing a Key Role in achieving the Development Results
PROCUREMENT IN PRSCs – Case of Uganda
What have we achieved in procurement as a result of
PRSCs? (contd.)
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Under the Procurement Law, a new Regulatory
Authority was established (Public Procurement
and Disposal of Public Assets Authority – PPDA)
to replace the Reformed Central Tender Board
A Procurement Cadre was established in the Civil
Service Scheme
A Capacity Development Strategy was prepared
and is currently under implementation
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Playing a Key Role in achieving the Development Results
PROCUREMENT IN PRSCs – Case of Uganda
What have we achieved in procurement as a result of
PRSCs? (contd.)
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Procurement aspects of Local Government Law have been
harmonized with the Procurement Law through revision of the
Local Government Law
Regular procurement audits are being carried out
Capacity building is going on in earnest
The above achievements were only possible because
Procurement was made an integral part of Economic Policy
Reforms which have been designed, implemented and
monitored under the PRSC instrument. Without this
instrument, it is unlikely that the Government would have so
easily agreed with the procurement reforms that have taken
place.
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Playing a Key Role in achieving the Development Results
PROCUREMENT IN PRSCs – Case of Uganda
Issues to be Highlighted and Lessons Learnt
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Main Issues and Lessons learnt at the design stage
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Buy-in by the Uganda Government – Need to take time to explain
the objectives and benefits of the CPAR
Ownership of the CPAR by the Government – CPAR exercise to be
driven by the government (The Government should be at the
driver’s seat).
Participation by Development Partners (DPs)
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Lack of capacity
Lack of interest
Confidence of DPs to leave the Bank to handle the exercise
Need to take time to explain the objectives and benefits of the CPAR
Funding
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Need to involve DPs, at least in providing funds for designing reforms
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Playing a Key Role in achieving the Development Results
PROCUREMENT IN PRSCs – Case of Uganda
Issues to be Highlighted and Lessons Learnt (contd.)
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Main Issues at the Implementation Stage
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Lack of adequate capacity of the Government and
implementing agency – Need for the Government to use
external consultants to assist in the implementation
Lack of political will - Need to have a champion to push
through implementation of the reforms
Inadequate Funding – Need to involve DPs in funding
implementation of the reforms which they might have
financed at the design stage
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Playing a Key Role in achieving the Development Results