Advancing Public Procurement Through e-GP Modernization Workshop
This workshop presentation by Tenkpinou Hessou from the Public Procurement and Concessions Commission (PPCC) focuses on the modernization of the public procurement system in Ganta-Nimba County, Liberia. It highlights the background, challenges, and potential benefits of implementing an e-Procurement (e-GP) system, emphasizing functionalities, role mapping, readiness, advantages, challenges, and critical success factors. The Government of Liberia's efforts in procurement and concessions reforms, engagement with international institutions, and the business case for e-Procurement are elaborated, along with the envisaged functionalities of the e-GP system.
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Presentation Transcript
Public Procurement and Concessions Commission (PPCC) Public Procurement Compliance Workshop for County Authorities Modernization of the Public Procurement System Presentation By: Tenkpinou Hessou (IT Manager/PPCC) Ganta-Nimba County | April 5, 2022 | 9:00 PM 3:40 PM
Structure of the Presentation 2 Background and Introduction Business Case for e- Procurement (e-GP) System Envisaged e-GP System Functionality & Role Mapping Readiness/Prerequisites Expected Benefits/Advantages of e-GP Potential Challenges and Critical Success Factors Conclusion, Comments & Questions
3 Background and Introduction Government of Liberia (GoL) has been engaged in Public Procurement and Concessions reforms since 2008 and has made significant progress. The reforms have covered PFM institutions, legal and regulatory frameworks, including public sector procurement reporting and oversight. These reforms are aimed at facilitating the private sector and other players to contribute to the social-economic development of the country. Whilst reforms in the public sector procurement have realized some success, significant challenges still persist in the current procurement system GoL with support from the World Bank, African Development Bank and EU has commenced implementation of the e-Government Procurement (e-GP) System to further improve public sector procurement and concessions processes to address some the current challenges
4 The Business Case for e-Procurement More than 50% of GoL s budget is expended through public procurement. Current public procurement and concessions system is semi-automated (largely paper based) and with several challenges as outlined below; Procurement delays impact on budget absorption Procuring outside procurement plans Ineffective contract and concessions management Low levels of compliance with procurement laws and regulations Poor procurement and concessions records management Manual and fragmented procurement and concession business processes Low bidder participation High bidding costs E- procurement is expected to address some the challenges outlined above.
5 Envisaged e-GP System Functionality Bid Process Management Initiation of Procurements & concessions Procurement & Concessions Planning Bidder Registration National ID Authority to facilitate verification of national IDs SMS Gateway for SMS Notifications Contract & concessions Management Online Auctioning Online Evaluations Disposals Agreements & Contracts Electronics Payments Administrative Reviews Template Library Digital Signatures for signatures E-Payment Gateway to facilitate e-Payments Performance Management E-Catalogue Notifications Workflow Management Integrated Financial Mgt Information System (IFMIS) for Payments and reporting Liberia Revenue Authority (LRA) for verification of tax compliance Business Registry System for verification of business registration
6 Envisaged E-GP Role Mapping No Users Role(s) 1. Procuring Entity Staff Managing procurement and concessions processes Approvals Compliance monitoring/Administrative reviews Performance monitoring/reporting Approvals Compliance and Performance monitoring Back end system administration Participate in Procurement and concessions processes 2. Public Procurement and Concessions Commission (PPCC) 3. Development Partners 4. Procuring Entity Administrators 5. Private sector/provider organisations (vendors) 6. Internal Auditors (IAA) Compliance monitoring Internal controls 7. External Auditors (GAC) Statutory audit 8. System Administrator (PPCC) Overall back end system administration 9. Helpdesk Handling user logs 10. Public/Guest Procurement and concessions information/reports
Readiness/Prerequisites 7 Legislative and regulatory framework readiness (amendments to PPCA, Regulations, approval of e-GP Guidelines, cyber security, etc.) Appropriate ICT Infrastructure (Main Datacenter & Disaster Recovery Site, internet connectivity, digital signatures, etc.) Readiness of Procuring Entities (MACs) computers, printers, scanners, other ICT accessories, internet access, staff training, change management Readiness of the private sectors institutions (ICT equipment, internet, staff training, organization structures) Readiness of key government institutions (Business Registry, Liberia Revenue Authority (LRA), National ID Authority, etc.) Readiness of Development Partners (revision of financing agreements) Well equipped training facilities spread across Liberia including the Counties
Expected Benefits of the e-GP System 8 Enables rational planning and resource utilization (procurement plans developed in the system according to approved budgets) Elimination of the wastage (categorization of item codes in accordance with standard codes, linked to item codes with indicative pricing for common user items through market surveys) Deters fraud and corruption (minimal human interaction, Audit trails ability to deal down to specific transactions and identify who did what, when & where and visibility of transactions across the entire government) Provides real time access to procurement and concessions information for decision making (including ongoing processes) Promotes bidder participation and competitiveness in public procurement and concessions processes Leads to reduced bidding costs Facilitates timely payments for goods, services and works Leads to improved efficiency and value for money in public procurement and concessions processes Enables improved debriefing processes of unsuccessful bidders Improves transparency and accountability in public procurement processes online availability of information
Potential Challenges/Risks Timely policy and legal/regulatory framework changes to accommodate e-GP Readiness of government institutions (procuring entities) and private sector entities (vendors/suppliers) Resistance to change maintaining status-quo (losers) Inadequate ICT infrastructure (ICT equipment, internet) Lack of reliable power supply to run ICT equipment Readiness of integrating systems (Business Registry, LRA, Banks, National ID) Inadequate internal human resource capacity (requisite skills among staff- steep learning curve) Cyber security threats (internal and external) 9
10 Critical Success Factors Top management commitment and support (executive sponsorship is key) Enabling legal and regulatory framework (procurement, concessions, cyber security, etc.) Availability of critical ICT and other infrastructure (internet, connectivity, ICT equipment, reliable power, digital signatures, etc.) Proactive involvement of key stakeholders in the implementation process (PEs, technical staff, bidders, DPs and other key stakeholders) Provision of adequate funding to support e-GP implementation activities A comprehensive capacity building plan that ensures continuous learning for staff, bidders and other key stakeholders Innovative communication and change management strategies Proactive engagement of the e-GP system provider to ensure that all GoL procurement and concession processes are adequately covered
11 Concluding Remarks GoL continues to make substantial investments in the implementation of public sector procurement and concessions reforms to improve efficiency, transparency and accountability The reforms are not an end in themselves. It is the effective use of these reforms by government entities, the private sector and other stakeholders to improve service delivery that is most critical
12 End of Presentation Discussion Comments/Questions