Strategy for Strengthening and Use of Country Systems

Strategy for Strengthening and Use of Country Systems (UCS) 2014

Aceptación de sistemas de adquisiciones 2

Aceptación de sistemas de adquisiciones Paris Declaration – 2005 Donor Harmonization Fiduciary Systems Planning Financial Management Procurement Monitoring & Evaluation Country Systems Statistics Environmental Assessment D e v e l o p m e n t E f f e c s t s i v e n e Non-Fiduciary Systems 3

Requirements for the acceptance of procurement systems Application of the Guide for the acceptance of Country Procurement Systems: • • • Demand driven Not applicable to International Competitive Bidding Based on international best practices: Compliance of the 54 indicators of OECD/DAC methodology; only minor adjustments may be required Rigorous internal review process Advanced/Partial Use 4

Strategy - Methodology for the acceptance of procurement systems OECD/MAPS Indicators & IDB Criteria for Acceptance Procurement Systems > 90% Indicators → Advance Use < 90% Indicators → Partial Use Bank and Government agree use of Subsystems and Strengthening Plans 5

UCS Process Diagnostics Systems under development Strenghtening Projects Validation Process Systems attain standards Use of Country Systems in Operations 6

Bank’s options for Use of Country Systems Aceptación de sistemas de adquisiciones Use of Country Procurement Systems NOT CONSIDERED FOR COUNTRY SYSTEMS ICB International competitive Bidding 1 2 NCB National Competitive Bidding Partial or Advanced Use Shopping and equivalents (Reverse auction, Framework Agreements) 3 Individual Consulting Services 4 Information Systems

Principales características de la estrategia What does it mean? Expected Effects More efficient and effective use of Country resources Lower transaction costs for countries and the Bank More opportunities to deliver effective strengthening Positive impact in project’s execution What does not change International Competitive Bidding Eligibility, prohibited practices Planning and reporting May still require exceptions 8

Expected impact on Bank-financed operations § Up to date, the Bank has approved 17 out of 26 countries for Use in IDB-financed operations § § § 4 Advanced 8 Partial 5 Information Systems Potential Impact Country ARGENTINA BOLIVIA COSTA RICA EL SALVADOR PERU PARAGUAY PANAMA JAMAICA BRAZIL ECUADOR MEXICO CHILE # Processes 67% 52% 63% 54% 20% 17% 33% 47% 79% 71% 80% 93% Amount 2% 19% 22% 42% 1% 6% 37% 2% 39% 35% 59% 77% Source: Procurement Plans projections, December 31 st, 2013 These values are preliminary and are subject to fluctuations in the composition of the portfolio Back

Country Procurement Systems validated (Advanced and Partial) Chile ü ü ü ü ü Ecuador Mexico Peru ü ü ü Panama Brazil Honduras Electronic System Paraguay Uruguay Dominican Republic Guatemala Nicaragua ü Jamaica Bolivia El Salvador Argentina Costa Rica Scope ü ü ü ü NCB Goods and services different from consulting services Traditional Shopping Framework agreement Reverse auction ü ü ü ü ü ü ü ü ü ü ü ü ü NCB Works Consulting services Partial Traditional Shopping Individual Consultants ü ü ü ü ü Advanced § Country System used on procurement process § Reports to the Bank on: - Operations - protests (if any) - Changes to the parameters under which systems was validated § Supervision of Process under country systems IDB Country Use and Monitoring of the country systems § Section 1 of Procurement Policies applies to all processes under Country systems § Monitoring use of the system under the parameters in which it was validated

Benefits of reforms in Procurement in LAC 2002 -2012 § The resources involved in public procurement reached on average 15% of gross domestic product of countries, equivalent to US$ 800 Billion annually for the region § Around US$ 560 Billion (70%) is advertised on the Internet § In some countries, the number of bidders in public tenders tripled § Significant savings of public resources in the region, which exceeded US$ 30 Billion in 2012, only in procurement of goods and services § 50% of the bids includes sustainable or environmental criteria for both bidders for companies and their products. § The participation of MSMEs in the value the of public procurement market of goods and services doubled, reaching 60% § Delivery times for goods and services procured by public sector entities was reduced by 50% § The number of non responsive tenders decreased by 30% 11

Important next steps for Trinidad and Tobago The NEXT STEPS: §Enactment of procurement law §Plan for operationalization of new regime §Diagnostic of the procurement system §Determination of aspects for use/strengthening activities. 12

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