On December 10, 2008, the Global Dialogue Workshop entitled “Demystifying Electronic Government Procurement” took place at the World Bank Headquarters in Washington, DC. The workshop, which was hosted by the e-Development thematic group, GICT, OPCS, PREM and the WBI, sought to engage in an international dialogue on opportunities and challenges of Electronic Government Procurement (e-GP) implementation and the role of the World Bank in this context
Samia Melhem, Chair, e-Development TG, GICT, World Bank introduced the event and the presenters. Deepak Bhatia, Lead e-Government Specialist, GICT, World Bank, and Knut Leipold, Senior Procurement Specialist, OPCPR, World Bank served as Melhem’s co-chairs. Bhatia introduced Peter Harrold, Director, Operations Services, World Bank, who delivered the opening statement. Harrold highlighted the importance of a national website where all procurement and contract information is made available, which is typically the first step towards e-GP. Among the challenges the area faces, Harrold stated, is how to implement the technology associated with e-GP.
Sanjay Pradhan, Vice President, World Bank Institute, delivered the keynote address. Pradhan situated e-procurement reform within the broader framework of reforming governance. For this, he stated, there must be a focus on responding to the civil society and media, private sector, and politics-- or the demand side. He also spoke about the importance of strengthening this demand for public financial accountability, citing examples worldwide. He outlined and explained of the conditions necessary for an e-procurement reform to succeed, stressing the need to situate the reform in the context of political and economic challenges. Pradhan concluded by explaining how an e-procurement reform can help eliminate corruption, and the many challenges this poses.
The subsequent presenters spoke from a country perspective. Felipe Goya, Director, ChileCompra, explained the Chilean procurement system, already at an advanced stage, and listed the achievements which resulted from its implementation. These include high savings, increased transparency, high numbers of users, extensive coverage of government agencies, and bridging the digital divide. Among the key factors which contributed to e-GP success, he cited political support and availability of resources.
The next presenter to present an advanced country case was Ajay Sawhney, former Secretary IT&C, Ministry of Andhra Pradesh, India. Sawhney outlined the emergence of the e-GP system in Andhra Pradesh since 2001 and the implementation of strategy used. He explained the characteristics of the public private partnership model used for implementation. Sawhney stated that among the benefits of e-GP is improved efficiency, cost savings, elimination of contractor cartels and empowerment of bidders. Critical success factors, he stated, included high level political support, active involvement of stakeholders, and the public private partnership model, among others.
The last case of advanced implementation was presented by Gian Luigi Albano, Head of R&D, Italian Public Procurement Agency. Albano started by explaining the history of Consip, a joint-stock company created in 1997 by the Italian Ministry of Economy and Finance to manage and develop ICT services for the Ministry, as well as the development e-Procurement tools for the government. Benefits of e-GP for Italy has improved efficiency and cost savings, which the Albano quantified with specific indicators within his presentation. Albano described notable features such as the eMarketplace.
Amulya K. Debnath, Director General, Central Procurement Technical Unit, Ministry of Planning, People’s Republic of Bangladesh presented a case of e-GP implementation at its early stages. He explained the foundation set by legislatives reforms starting in 2003, the evaluation of e-GP readiness and the current status of reform implementation. Debnath also spoke about the expected outcomes of implementation, citing a centralized database of Public Procurement Community, standardization, increased efficiency, and effective monitoring and evaluation. Among the challenges, he mentioned the preparedness of bidding communities, finalization of e-GP guidelines, and the need to increase trust in online transactions.
Next, Paul Schapper, International Consultant, spoke about his multiple experiences assisting in design and implementation of e-GP in 26 different countries. Schapper reflected on some of his experiences undoing misunderstandings and mythologies about the role of technology in this area. Ultimately, Schapper said, the potential of e-GP will only be realized when it is recognized as a reform program, and not simply an IT installation.
Following these presentations, co-chairs Bhatia and Leipold spoke about the role of technology in facilitating reform and the role of multi-lateral institutions, respectively. Their presentations were followed by a question and answer session.
The next part of the event featured client perspectives from Armenia, Kenya, Moldova, Philippines, and Tanzania on how to move the e-procurement efforts forward in their own countries. The first comments, from the Philippines, described a few characteristics of their e-GP system and the benefits which have resulted from its implementation. The specialist from Armenia talked about designing a road map towards e-GP implementation, starting with the political steps and now with more technical initiatives. Next, Moldovan specialists spoke about expanding e-GP to more departments and ministries and the legislative foundation that has been put in place. In Kenya, specialists outlined the beginnings of e-GP in addition to major achievements of the reform. Tanzanian specialists stated they are creating a feasibility study for e-GP issues, and also pointed out recent legislative gains from e-GP implementation. Several countries specifically requested WBG help and TA in formulating technical specifications for e-GP systems. They explained that while they did not require help to ‘re-invent the wheel’, they instead sought for guidance concerning the use of existing international good practices.
Eduardo Talero, Consultant, SASFP/GICT, World Bank, commented on the presentations. He started by explaining that he organized the first conference on e-GP at the Bank, in 2001. In the time that has elapsed, Talero said, he noticed that progress has been much slower than expected, and that resistance to reform exists but is often not apparent.
The closing panel, entitled “How to Mainstream and Scale Up the e-Procurement Agenda” featured commentators who reflected on the event. James Adams, Regional Vice-President, East Asia and Pacific, World Bank, emphasized that e-GP offers enormous opportunities to enhance transparency and efficiency in public procurement systems. He spoke about his experience with e-GP in East Asia, stating that e-GP will remain a priority in the region. Bernard Becq, Chief Procurement Policy Officer, OPCPR, World Bank, stressed the role of the World Bank in providing assistance to countries implementing e-GP reform, particularly in designing strategy. Randi Ryterman, Acting Director, Public Sector Governance, World Bank, suggested some entry points to aid in scaling up e-GP efforts, such as exploiting new ways of inserting e-GP in country dialogue, outreach to country economists, and specific sector dialogue. Philippe Dongier, Sector Manager, GICT, World Bank, explained the role of GICT in supporting the use of technology for reform initiatives, and that e-GP is the unit’s priority. He spoke of the importance of cooperation among groups in the Bank as well as the desire to focus e-GP efforts a few countries. Finally, Han Fraeters, Acting Manager, GDLN/WBIGM, World Bank Institute, spoke about how e-GP fits into the renewed WBI strategy, focusing on partnerships with other parts of the Bank.
Samia Melhem concluded the session with some closing statements and acknowledged the contributions of all participants.
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