african public procurement reform technical committee meeting nairobi, kenya sept 13-14, 2010
TRANSCRIPT
AFRICAN PUBLIC PROCUREMENT REFORM
Technical Committee MeetingNairobi, Kenya Sept 13-14, 2010
PREPARATION OF THE MEETING OF THE TECHNICAL COMMITTEE CHARGED TO
FORMALIZE THE AFRICAN PUBLIC PROCUREMENT REFORM NETWORK OF
STAKEHOLDERS (APPRENS)
AFRICAN DEVELOPMENT BANKASSISTED PROJECT
Prepared by:
Prof Kunle Y. ADAMSONB.Sc., M.A., M.Soc.Sc., Ph.D
Executive Director
Africa Development Management NetworkAdamson Economics Organization
3037 Memorial StationMontclair, NJ 07043, USAwww.adamson-economics.org
African Procurement SystemBackgroundAssessment Methodology
Performance of the System
What is APPRENS?Membership
Objectives and Functions
Institutions and Governance
Background Africa cannot develop until it solves its procurement
problems, contract inflation and corruption go hand in hand in Africa (Dr. Jonathan Goodluck, Nigerian President)
Many African governments lack the capacity to design, to implement and to monitor projects in a transparent way
Africa’s needs for procurement reform is supported by the “Tunis Declaration” to strengthen, modernize, and harmonize the existing procurement systems of African countries.
By creating the African Public Procurement Reform Network of Stakeholders (APPRENS).
Assessment MethodologyIncreasing the effectiveness,
efficiency and transparency of procurement systems require a national procurement system that meets international standards.
By Dec. 2004 Johannesburg Declaration, African countries are committed to the adoption of the OECD Development Assistance Committee (DAC) Baseline Indicators Tool as the agreed international standards for assessment of national procurement systems.
Based on OECD –DAC presentation to the Africa Regional meeting in Kampala (Dec. 12 – 14, 2006), the methodology for assessing national procurement systems consists of:
Objective and intent Baseline Indicators (BLIs) Compliance and
Performance Indicators Scoring of the BLIs Planning and Preparation Assessment Report
Assessment Methodology (Contd.)
The Baseline Indicators (BLIs) represent the comparison of actual system versus international standards. They consist of 12 indicators and 54 sub-indicators arranged around the following four pillars:
Legal and regulatory environmentInstitutional architectureOperations of the system and competitiveness
of the national systemIntegrity of public procurement
Performance of the SystemAccording to various
Procurement Assessment Reports of different African countries, the Performance Characteristics are:
Low % of open bidding Low publicly advertized Barring of group of bidders Subjective evaluations High % of contracts not in the
Procurement Plan aligned with the Budget
High % of major contracts have no completion reports
High % of stakeholders perceive system as incompetent and untimely
High % of contracts have incomplete records
High % of corruption accusations never get to trial
Procurement audits are non-existing
High % of stakeholders perceive the anti-corruption measures as non-effective.
Lack of a modern law on Public Procurement
Financial Regulations have gaps and deficiencies
Proliferation of tender boards causing delays and non transparency
Cumbersome customs systems and procedures causing major delay in clearing goods, and hence a source of corruption
Procurement is often carried out by staff members who lack relevant training
Lack of feedback mechanism Low stakeholder awareness of
web-based procurement information system
System for collecting and monitoring procurement statistics not fully utilized
What is APPRENS?
Membership
The Network should be established through the collaborative efforts of the African Development Bank (AfDB), the African Capacity Building Forum (ACBF) and the Collaborative African Budget Reform Initiative (CABRI); which can guide it through its infancy period.
Membership of APPRENS shall be open to all AU Member States, the private sector, the civil society such as the NGOs’ and the Trade Unions, the regional economic organizations such as ECOWAS, COMESA, etc., and Observer status shall be granted to officials or representatives of donor organizations such as the OECD, the WORLD BANK, the EU, IMF, etc., or countries who are involved in, or which have expertise in, public procurement management
Establishment of the culture of professionalism
Promotion and facilitation of mutual cooperation among national procurement authorities, private sector and NGO’s
Setting of standards and the establishment of procurement rules
Establishment of monitoring and compliance
Coordination of procurement capacity development
developing positions on procurement related issues of interest to Africa
Objectives
Facilitate exchanges on public procurement management issues between African States
Organize annual seminar and seminar dialogues
Expand resource base of African public procurement management experience through publications reflecting discussions at various APPRENS forums
Undertake capacity development activities, such as cooperating with training institutions in designing and presenting programmes on aspects of public procurement management addressing the needs of African States
Increase awareness of high-level decision-makers of the knowledge gained through APPRENS activities
Enrich dialogue between African States and Development Partners on public procurement management issues
Provide technical support to regional initiatives relating to public procurement management
Create and facilitate mutual evaluation and peer review, and Perform any other activity necessary for attaining the objectives of APPRENS.
Functions:
APPRENS must institute a program which will focus on strengthening the cooperation on exchange of information, best practices and benchmarking, operating in close collaboration with the member states and the international aid donors.
The goals of the program will be:
To analyze the progress made by member states in modernizing its public procurement system
To produce recommendations on improving integrity in public procurement in member states
To assist members states in grasping the challenges of integrity in public procurement
To explore practical applications of the OECD Procurement Assessment Methodology
To encourage mutual learning
Programs:
Institutions and Governance
Institutions: APPRENS shall have a General Assembly, Management Committee and a Secretariat. Other institutions may be established as determined by the General Assembly.
Consensus: APPRENS institutions shall take decisions on the basis of consensus.
Representation: In order to be truly representative, the quorum of all meetings of the institutions of APPRENS shall be at least sixty percent of the members of the particular APPRENS institution.
Language: English, French and Portuguese shall be official languages of APPRENS.
Secretariat: APPRENS shall conclude a Headquarters Agreement with the hosting Member State or its secretariat may be hosted by an existing organization as a means of minimizing cost and expediting its inception
Institutions and Governance (Contd.)
Contact Points: Each country shall appoint up to three Contact Points for taking action in connection with the activities of APPRENS including taking action in international procurement matters.
Costs: Each participant is responsible for their own costs for all travel and subsistence in connection with the networking. It is recommended that administrative costs be kept low.
Information: All necessary information
about the APPRENS shall be made available on the Contact points, the National websites and other websites.
•
The GRECO Organizational Model
Application Issues of the GRECO Model to Africa
Formal and Informal Organizations
Organizational Structure of APPRENS
Terms of Reference of the ComponentsThe General AssemblyThe Management Committee
The Secretariat
Budget and Finance
The GRECO Organizational ModelAn example of a continental body with legal powers to
formulate, to build consensus and to monitor reforms and encourage self compliance in the member states is the Council of Europe with 47 countries.
The approach of the Council of Europe in the fight against corruption consists of three interrelated elements:
1. Setting of European norms and standards 2. Monitoring of compliance with the standards 3. Capacity building offered to individual countries
and regions
The monitoring of compliance with these standards is entrusted to the Group of States against Corruption, GRECO
The GRECO Organizational Model (Contd.)
If the AU represents the European Council, then the African Network of Stakeholders in Public Procurement Reforms (APPRENS) shall play the role of GRECO; which will carry out the three objectives:
1. setting the African procurement standards, 2. monitoring compliance and 3. building capacity in member states for meeting
the standards.
Hence the organizational structure and the legal framework for APPRENS may be similar to that of GRECO.
Let us first present the organizational structure of GRECO below.
The GRECO Organizational Model (Contd.)The GRECO Agreement creates a Plenary which comprises
of the Presidency, the Bureau and the Working Groups. Membership in GRECO is not limited to Council of Europe
member States aloneany State which becomes Party to the Criminal or Civil
Law Conventions on Corruption automatically accedes to GRECO and its evaluation procedures
The functioning of GRECO is governed by its Statute and Rules of Procedure
Each Member State appoints up to two representatives who participate in GRECO plenary meetings with a right to vote; each member also provides GRECO with a list of experts available for taking part in GRECO’s evaluations.
GRECO has granted observer status to the Organisation for Economic Cooperation and Development (OECD) and the United Nations – represented by the United Nations Office on Drugs and Crime (UNODC).
Application Issues of the GRECO Model to Africa
Two issues should be noted here.
The first issue:
That GRECO does not directly include the private sector and the civil society as members
That the membership of APPRENS will directly include the private sector and the civil society representatives.
That it is a problem to form an organization between states which at the same time includes the private sector and civil society in its membership.
Therefore the membership of APPRENS suggests an organization without an international agreement, in contrast to GRECO.
Application Issues of the GRECO Model to Africa (Contd.)
The second issue:
That Europe already has a much more democratic and a rule-of-law society than Africa.
An organizational structure and legal framework which performs well in the European context does not mean that it will do exactly the same in the African context.
This is the reason why it is necessary to look at several existing African and non-African institutions, to draw from their similarities and dissimilarities in contrast to GRECO.
Institutions Examined
• Non-African Institutions• GRECO - Group of States against Corruption• PPN – European Public Procurement Network • OECD (ACN) - Anti-Corruption Network for Eastern Europe and Central
Asia• UNCITRAL – United Nations Commission on International Trade Law• ACINET - Arab Anti-Corruption and Integrity Network • LIBNOR – Lebanese Standards Institution• CYPRUS – Public Procurement Directorate
• African Institutions • ACBF – African Capacity Building Foundation• CABRI - Collaborative Africa Budget Reform Initiative • ATAF – African Tax Administration Forum• NITC – National Information Technology Authority• COMESA – Common Market of Eastern and Southern Africa• AFROSAI – African Organizations of Supreme Audit Institution• WAEMU (UEMOA) – West African Economic and Monetary Union
Notable ComparisonsGRECO is an informal organization with international
agreement between members.
ACINET, the Arab Anti-Corruption and Integrity Network, is also very similar to GRECO as an informal international organization.
OECD’s Anti-Corruption Network for Eastern Europe and Central Asia has no formal agreement what so ever.
Many of the African organizations such as the African Capacity Building Forum (ACBF), the Collaborative African Budget Reform Initiative (CABRI) and the African Tax Administration Forum (ATAF) have formal agreements.
Let us look at the organizational diagram of the ACBF as shown
African Organizational Structures
Common Characteristics
The diagram shows that ACBF, like the other African organizations, is hierarchically structured.
It is a top-down organizationDecisions are passed down from the top without much
feedback linkage or participation of the stakeholders. They rely to a limited degree on membership fees but
more on donor sponsorships and grants for their financial resources.
In contrast:
the Arab Anti-Corruption and Integrity Network (ACINET) does not have a formal agreement, its membership is voluntary and there is no membership fee.
So is the European Public Procurement Network, which is an informal organization with voluntary membership as well.
Structural PossibilitiesThere are two possibilities for APPRENS:
1. The formal organizational framework based on an agreement and rules
2. The informal one which has no agreement and decisions are based on consensus.
To derive an optimal organizational structure for APPRENS, we must at least present the theoretical advantages and disadvantages of each type of organizational structure.
Formal versus Informal OrganizationsUsing Max Weber’s theory of Bureaucracy as our premise,
an organizational structure can be classified as:Entrepreneuralbureaucratic orcooperative.
The entrepreneural type of organization: It lacks the standardization of tasks It is most common in very small organizations headed by
the owner It performs very simple tasksThe structure is totally centralizedThe owner has all the decision The nature of the structure is subjective Its sustainability is dependent on the personality of the
ownerHence it is an organic structure.
Formal versus Informal Organizations (Contd.)
The bureaucratic organizational structure: It is standardized It is more suited to complex operations and activities. It is very hierarchical It operates by rules Decisions are made by rationalizationCommunication is non-personal its operations are objective and mechanistic in nature.
The cooperative organizational structure:
Decisions are based on dialogue and consensus The organization is a network It is open at the boundaries It encourages participation It helps to empower people
•
Relative Advantages vs. DisadvantagesSimplicity of the entrepreneurial organization limits its
capability and its scale of operation. The bureaucratic organizational structure is highly
hierarchical and top-heavy. Its standardized routine limits participation, loyalty and creativity.
In the cooperative organization, membership is voluntary and so participation is maximized. It is a self-motivating organization and hence loyalty and productiveness are guaranteed. Because members have equal power, responsibilities for the attainment of the organizational goals are also shared equally and since decisions are built on consensus; monitoring and compliance are easier to attain.
CONCLUSION: Since cooperative organization is the best way to attain egalitarian participation, full compliance, decentralization of authority and the least expensive to set up and to run, then the cooperative organizational structure is the one to be applied to APPRENS.
Examples of Informal Cooperative Organizations
European Public Procurement Network (PPN) is “a co-operation network of public procurement expert officials dedicated to strengthen the application and the enforcement of the procurement rules through mutual exchange of experience and benchmarking; and to create a reliable and effective informal co-operation including problem-solving in cross-border cases related to public procurement.”
The Anti-Corruption Network for Eastern Europe and Central Asia (OECD – ACN)
The Arab Anti-Corruption and Integrity Network (ACINET)
Organizational Diagram of APPRENS
General Assembly Suggestions
Working Strategic Policy Consensus Groups Work Plans Management Committee Operations Policy Policy Reports Feed Back Secretariat Operational Activities
Procurement Operations Finance Standards Human Budgeting Capacity Resources Compliance Legal Audits Fact-finding & External Knowledge Communication Fundings Stakeholders and Service Recipients
The Optimal Organizational Structure of APPRENS
APPRENS shall have three institutions:General Assembly Management Committee
and Secretariat.Decisions are consensus
based as stakeholders opinions loop back into the decision process via:
Working Group reports to the General Assembly
Operational Reports from Secretariat to Management Committee
Stakeholders and Service Recipients opinions via the Complaints Bureau of the Secretariat or directly to the General Assembly.
General Assembly Suggestions
Working Strategic Policy Consensus Groups Work Plans Management Committee Operations Policy Policy Reports Feed Back Secretariat Operational Activities
Procurement Operations Finance Standards Human Budgeting Capacity Resources Compliance Legal Audits Fact-finding & External Knowledge Communication Fundings Stakeholders and Service Recipients
Terms of Reference of the Components
The General Assembly Membership: It shall be open to all AU Member States, the private
sector, the civil society such as the NGOs’ and the Trade Unions, the regional economic organizations such as ECOWAS, COMESA, etc., and Observer status shall be granted to officials or representatives of donor organisations such as the OECD, the WORLD BANK, the EU, IMF, etc., or countries who are involved in, or which have expertise in, public procurement management.
Functions: It shall meet at least once every financial year It shall be responsible for the ratification of the annual work plan
and budget of APPRENS and the overall policy direction of APPRENS
It strengthen the application and the enforcement of the procurement rules through mutual exchange of experience and benchmarking
It shall create a reliable and effective informal cooperation among members
In order to address specific issues of interest to participating members, it shall set up specific ad hoc working groups and workshops
Terms of Reference of the Components (Contd.)
The Management CommitteeMembershipIt shall consist of 13 members
5 members represent each region of Africa 3 members represent private business interest, NGO’s and
Trade Union 3 members represent ACBF, CABRI and ATAF 2 members represent the foreign donors Executive Secretary and Chair of General Assembly are ex-
officio members but no voting rights
Term
Members of the Management Committee shall serve 2 years in line with APPRENS financial year and may be re-elected for only one additional term.
The Chair shall be elected by the members of the Management Committee
Terms of Reference of the Components (Contd.)
Management CommitteeFunctions
The Management Committee shall be responsible for the management of APPRENS.
The Management Committee shall approve APPRENS work plan and oversee the use of funds.
The Management Committee shall oversee the work of the Secretariat.
The Management Committee may delegate specific tasks to the Secretariat.
The Management Committee shall meet at such intervals as it may decide but at least once every financial year.
Terms of Reference of the Components (Contd.)SecretariatMembershipThe Secretariat shall consist of the Executive Secretary
and such other officials as appointed by the Management Committee. The Management Committee shall determine their staffing levels subject to cost rationality, and the terms and conditions of their employment.
FunctionsThe Secretariat shall be responsible for the day-to-day
administration of APPRENS.The Secretariat shall arrange all meetings, seminars and
dialogues of APPRENS, keep reports, publications and the minutes of all meetings and shall disseminate information on behalf of APPRENS.
• The Secretariat shall prepare the annual work plan of APPRENS and submit it to the Management Committee for approval and to the General Assembly for ratification.
Terms of Reference of the Components (Contd.)SecretariatFunctions (Contd.)The Secretariat shall assist the General Assembly and the
Management Committee in their work and shall perform all functions assigned to it by the Management Committee.
The Secretariat shall be the depositary of all records of APPRENS, of its Charter (Statute), of the Rules of procedure adopted for all APPRENS institutions and of all documents of accession and membership.
The Secretariat shall receive all correspondence related to APPRENS and its activities.
The Executive Secretary shall be the head of the Secretariat and shall serve for a term of three years and may be re-appointed for no more than one additional term.
The Executive Secretary shall be responsible for signing collaborative agreements and contracts on behalf of APPRENS and shall do so in consultation with the Management Committee.
Terms of Reference of the Components (Contd.)Secretariat: Budget and Finance Functions The Secretariat shall prepare the budget to be approved by the
Management Committee and adopted by the General Assembly. APPRENS shall operate a bank account in the Member State hosting
the Secretariat. The Executive Secretary shall be the chief accounting officer of
APPRENS and shall manage the APPRENS bank account under APPRENS’ financial rules and procedures.
The Executive Secretary may delegate administrative functions in respect of the APPRENS bank account to a financial officer in the Secretariat.
All membership fees, donations, income from endowment funds and income from APPRENS services, activities, products and publications shall be paid into the bank account of APPRENS.
The Management Committee shall appoint external auditors for APPRENS and determine their mandate and remuneration.
The General Assembly shall adopt the audited annual accounts of APPRENS.
APPRENS shall prepare accounts in accordance with generally recognized accounting practices and should have a zero tolerance for corruption.
PROGRAM OF WORK AND BUDGETARY ESTIMATE
Network Strategic Activities
Medium-term Inception Plan (2011-2013)Medium-term Strategic ObjectivesMedium-term Operational ProgramsMedium-term Operational Activities
Medium-term Inception Budget Proposal
Network Strategic ActivitiesObjective: Reform and improve existing public procurement
systems
Strategy:setting of African Procurement standards enhancing institutional capacity building ensuring systemic integrity through compliance with the
standards
Strategic Activities:Institutional ActivitiesEducational ActivitiesCapacity Building Activities Monitoring and compliance activities
Strategic Activities
Key Institutional ReformsEducation, Training & Learning
Draft standard bidding documents for routine services
Develop procedures for safe keeping of procurement records
Establish mechanism for integrating procurement in the budget process
Create legal backing for procurement system and strengthen anti-corruption institutions
Conduct sensitization activities for procuring entities, user departments, and private sector
Develop procurement guidelines to procuring entities and private sector
Establish formalized helpdesk function
Strategic Activities
Key Capacity Building ActivitiesKey Monitoring &
Compliance Activities
Sensitize politicians and top officials on the importance of sound procurement practices
Sensitize management level of NGOs and media on the importance of procurement to public service delivery
Conduct information campaign to enhance public awareness of procurement
Accelerate dialogue between procurement authorities and private sector
Initiate systematic procurement monitoring in low performance areas
Medium-term Inception Plan (2011-2013)Medium-term Strategic Objectives
1.Establish communication and cooperation between policymakers and practitioners of public procurement
2.Create and advance policy dialogue, capacity and knowledge development at the national and regional level in different areas of public procurement
3.Provide mechanisms for peer learning and advice and facilitate building sustainable partnerships at the regional and national levels, in order to promote procurement standards
4.Support frameworks and mechanisms aimed at developing benchmarks for assessment and indicators to measure performance, in participating countries
5.Develop the foundation for productive partnerships with all stakeholders including civil society, media, the private sector, and government representatives, and donor organizations
Medium-term Inception Plan 2011-2013 (Contd.)
Medium-term Operational Programs1.Public Procurement Standards Program2.Public Procurement Complaints Program3.Public Procurement Systems Training Program4.Public Procurement Anti-corruption Program5.Public Procurement Structures, Methods and Decision-
making Program6.Public Procurement Judicial Integrity Program 7.Private Sector Sensitization Program 8.NGO’s Participation and Awareness Program9.Civil Society Awareness Program 10.Network Communication and Internet Program11.Procurement Studies and Research Program12.National Legislation and Anti-corruption Instruments
Program13.International Cooperation and Assistance Program
Medium-term Inception Plan 2011-2013 (Contd.)
Medium-term Operational Activities1.Establishment of the Secretariat2.Hiring and Recruitment of Management Staff, Experts and
Human Resources3.Hiring of Consultants4.Establishment of websites and contacts at regional, national
and local levels5.Preparation of Annual, Quarterly and Weekly Activities of Work6.Preparation and execution of Budgets7.Mobilization of financial and fund raising activities8.Preparation of Proposals for Technical and Financial Assistance
Needs9.Preparation of Technical and Financial Reports10.Preparation of Reform Plans and Recommendations11.Formulation of Network Services with Members’ Collaboration12.Organization of General Assembly Meetings
Medium-term Inception Plan 2011-2013 (Contd.)
Medium-term Operational Activities (Contd.)13.Organization of Workshops and Training14. Provision of Technical Support, Expertise and Advice to
Network Members15.Undertake activities to promote peer-learning and peer-
advice such as joint learning studies, field visits and other activities that benefit the Network Members
16.Preparation and publication of procurement standards, awareness and knowledge
17.Conduct studies on various topics related to procurement integrity, transparency, and accountability and disseminate results among members and jointly formulate appropriate procurement reform policies
18.Preparation of quarterly activity and progress reports19.Implementation of African and international procurement
instruments and conventions
Medium-term Inception Plan 2011-2013 (Contd.)
Medium-term Operational Activities (Contd.)
20.Preparation of the Network’s annual progress report
21.Organization of the Network’s consultative meetings to promote dialogue with the civil society, the media, the private sector, parliamentarians and donor organizations
22.Preparation of a collaborative framework with AfDB, ACBF, BABRI, ATAF, ECOWAS, COMESA, OECD, UNDP, etc.
Medium-term Inception Budget Proposal
Medium-term Inception Activities Annual Budget Establishment of the Secretariat: Building $960,000 / yr Furniture $200,000 Computers, Fax, Copying Machines & Printers, Telephones: $200,000 Operating Cost: Electric & Water $12,000 /month Stationeries, Copy Paper, Printer Ink & Pens $10,000 /month
$1,624,000
Hiring of Management Staff, Experts and Human Resource Staff: 6 Management Staff @ $70,000 /yr = $420,000 /yr 6 Experts @ $60,000 /yr = $240,000 /yr 200 Staff @ 30,00 /yr = $600,000 /yr
$1,260,000
10 Consultants @ $50,000 /yr = $500,000 /yr
$500,000
Establishment of websites and contacts at regional, national and local levels $100,000 /yr
$100,000
Preparation & distribution of Annual, Quarterly and Weekly Activities of Work $10,000 yr
$10,000
Preparation, distribution & execution of Budgets $10,000 /yr $10,000 Mobilization of financial and fund raising activities $25,000 /yr $25,000 Beginning-of-year Preparation, Printing & Distribution of Proposals for Technical and Financial Assistance Needs $10,000/yr
$10,000
Year-end Preparation, Printing & Distribution of Technical and Financial Reports $10,000 /yr
$10,000
Preparation, Printing & Distribution of Reform Plans and Recommendations $10,000 /yr
$10,000
Medium-term Inception Budget Proposal (Contd.)
Medium-term Inception Activities Annual Budget Formulation of Network Services with Members’ Collaboration $25,000 /yr
$25,000
Organization of General Assembly Meetings: 100 guests @$2,000 each = $200,000 /yr
$200,000
Organization of Workshops and Training $100,000 /yr $100,000 Provision of Technical Support, Expertise and Advice to Network Members $100,000 /yr
$100,000
Undertake activities to promote peer-learning and peer-advice such as joint learning studies, field visits and other activities that benefit the Network Members $100,000 /yr
$100,000
Preparation, publication & dissemination of procurement standards, awareness and knowledge $100,000 /yr
$100,000
Conduct studies on various topics related to procurement integrity, transparency, and accountability and disseminate results among members and jointly formulate appropriate procurement reform policies $100,000 /yr
$100,000
Conduct procurement practice assessment, performance monitoring & peer review $250,000 /yr
$250,000
Establish & undertake procurement complaint review $250,000/yr $250,000 Preparation & distribution of quarterly activity and progress reports $10,000 /yr
$10,000
Implementation of African and international procurement instruments and conventions $100,000 /yr
$100,000
Preparation, distribution & dissemination of the Network’s annual progress report $25,000 /yr
$25,000
Organization of the Network’s consultative meetings to promote dialogue with the civil society, the media, the private sector, parliamentarians and donor organizations $100,000 /yr
$100,000
Preparation of a collaborative framework with AfDB, ACBF, BABRI, ATAF, ECOWAS, COMESA, OECD, UNDP, etc. $100,000 /yr
$100,000
Annual Total Proposed Budget $5,119,000
Medium-term Inception Budget Proposal
The proposed medium-term activities are estimated to cost about $5.12 million per year.
This implies that the medium-term plan may cost about $15.4 million for the period 2011 – 2013.
FINANCIAL RESOURCES MOBILIZATION STRATEGY
Funding FrameworkDiversification of FundingSources of Funding
Medium-term Fund Mobilization
Funding FrameworkDiversification of Funding
Although procurement transparency may reduce waste of resources and corruption, but Africa is very concerned about the issue of tied aid within the context of Government Procurement Agreement (GPA) of the WTO which is a plurilateral agreement.
The African opinion is that its exclusion in the Agreement creates some kind of unfairness since transparency should apply to all, including the way aid is managed by the donor countries.
Since tied aid provides suppliers from the donor country with an upper hand in the bidding process, it goes against the principles of transparency and equal opportunity for all and, that it discriminates against local and other bidders.
Funding FrameworkDiversification of Funding (Cntd.)
Since most African Institutions like ACBF, AFROSAI and ATAF rely very heavily on foreign sources of funding, especially from aid-donor institutions, it is important to point out the implications of allowing the funding structure of APPRENS to rely too heavily upon foreign aid donors as well.
Hence the strategy of the funding structure of APPRENS is diversification of the sources of funds
Whereby a large proportion of the funding will be from African internal sources both government and private sources, while the balance will be from foreign donors like the aid-donor institutions and the private foundations
Sources of Funding Membership Fees: The
proposed annual membership fees are:
1. $100,000 for members with GDP of US$10 billion or greater
2. $65,000 for members with GDP less than $10 billion but greater than US$5 billion
3. $40,000 for members with GDP equal to US$5 billion or less.
Membership fees will be payable to APPRENS in US dollars at least three months prior to the start of each financial year.
Membership fees will be reviewed by the General Assembly every three years.
Partnerships: APPRENS should try to benefit from financial and non-financial contributions from major development partners. These partnerships will enable APPRENS to develop by deepening and broadening its scope.
APPRENS should collaborate with regional & international institutions to further its objectives.
Medium-term Fund Mobilization
1. In order to raise the required revenue of $5,119,000 per year, during the Medium-term Inception Plan period, it is being proposed that the strategic structure of the funds is as follow:
Sources of Fund % Share Expected Amount Membership Fees 60% $3,071,400 African Organizations 20% $1,023,800 International Donors 15% $1,023,800 Total: $5,119,000
Medium-term Fund Mobilization (Contd.)Proposed Annual Fees Assumed Distribution of Fees
1.$100,000 for members with GDP of US$10 billion or greater
2.$65,000 for members with GDP less than $10 billion but greater than US$5
billion
3.$40,000 for members with GDP equal to US$5 billion or less
No of Members
Total Payment
15 members @ $100,000 each
$1,500,000
15 members @ $65,000 each
$ 975,000
15 members @ $40,000 each
$ 600,000
45 Members @ $68334 each
$3, 075, 000
Medium-term Fund Mobilization (Contd.)
Funding by African Organizations
Funding by Non-African Organizations
APPRENS should try to raise 20 % of its annual funding $1,023,800 from:
1.African organizations such as AfDB, ACBF, CABRI, ECOWAS, WAEMU, COMESA.
2.African businesses and private foundations such as MTN, Globalcom, the Mo Ibrahim Foundation, etc.
APPRENS should also raise 20% $1,023,800 through:
1. Collaborative partnerships
1. Mutual interest 1. Grants from:
a. international organizations: OECD, UNDP, the IMF, the EU, OPEC Fund for International Development, United Nations Economic Commission for Africa (UNECA), etc.
b. Private Foundations:1. Bill & Melinda Gates 2. Warren Buffet Foundation 3. Michael Bloomberg 4. George Soros Foundation
Medium-term Fund Mobilization (Contd.)
Working Relationships
In order to improve Africa’s procurement standards, APPRENS Secretariat may establish a working relationship with such organizations as the European Public Procurement Network, EU Group of States against Corruption (GRECO), African Capacity Building Foundation (ACBF), Collaborative African Budget Reform Initiative (CABRI) and the African Tax Administration Forum (ATAF).
Operational Modalities (Procedures)
Rules and Procedures
Voting ProceduresExecutive and Management Appointments
Members of the Management CommitteeThe Executive Secretary
Procedures for Payment of Fees and Financial RulesPayment of FeesFinancial Rules and Procedures
Personnel Rules and Procedures
Standards and Evaluation Procedure
Rules and Procedures
Voting Procedures
APPRENS institutions shall take decisions by consensus.
When consensus is not feasible, the issue is put out to voting by secret ballot and by a majority of the present Members.
When a decision has been taken on any matter, such matter shall not be re-opened except at the request of a Member, approved by a four-fifth majority of the votes cast.
Only votes in favour or against are taken into account when counting the number of votes cast.
Executive and Management Appointments Members of the Management Committee
The Management Committee shall have 13 members:Regions of Africa - 5 Private Sector – 1NGO’s - 1 Trade Union - 1 ACBF – 1 CABRI - 1 ATAF - 1 Foreign Donors 2
The member to represent each region of Africa in the Management Committee shall be elected by the members from that region.
The three members to represent private sector interest, the
NGO’s and the Trade Union in the Management Committee will be elected respectively by each group.
Executive and Management Appointments The Executive Secretary
The Secretariat shall comprise of professionals and staff responsible for the day-to-day administration of APPRENS.
The Executive Secretary shall be appointed by the Management Committee as the head of the Secretariat, through an open and transparent job description, advertisement and interview process; by which the best candidate is being appointed to the position.
Any African can apply to be appointed as the Executive Secretary of APPRENS on the basis of professional qualifications only.
The Executive Secretary shall be assisted by sufficient number of staff to ensure the proper and effective functioning of APPRENS.
The staff shall be appointed through open and transparent advertising of the positions and selection of the most qualified applicants by the Management Committee.
Procedures for Payment of Fees and Financial Rules
Payment of FeesFinancial Rules and Procedures
Member States shall pay annual membership fees
Membership fees will be payable to APPRENS in US dollars at least three months prior to the start of each financial year.
Membership fees will be reviewed by the General Assembly every three years
All membership fees, donations, income from endowment funds and income from APPRENS services, activities, products and publications shall be paid into the bank account of APPRENS.
APPRENS shall prepare accounts in accordance with generally recognized accounting practices and should have a zero tolerance for corruption.
No more than one-third of the total revenue of APPRENS in any particular financial year shall be allocated to administrative cost, another one third shall be allocated to procurement capacity development of member states and the remaining one-third shall be allocated to standards, evaluation, monitoring and compliance.
Personnel Rules and Procedures
Any staff of the Secretariat must be professionally qualified for the position and job functions for which that staff member has been hired.
Each staff shall work forty hours a week.
Each staff shall be paid at the end of each month, but a pay advance which will be half of the monthly salary of that staff may be granted to each staff on the 15th of each month.
The pay scale and benefits for the executive, the staff and the personnel of the Secretariat shall be equivalent to that of similar African organizations such as the African Capacity Building Forum (ACBF), the Collaborative Budget reform Initiative (CABRI) and the African Tax Administration Forum (ATAF).
The Secretariat may draw up additional rules as necessary to an efficient and productive administration of the day-to-day activities of APPRENS.
Standards and Evaluation Procedures
The OECD Assessment Method should be used for the evaluation of member’s procurement system.
The Baseline Indicators of the Agreed International Standards, as described and listed in Appendix I of the Report , should be used to measure the performance of the procurement system of each member country.
Peer pressure and publication of the Summary of Results will be part of the tools available to APPRENS to induce compliance of a member country to the Agreed International Standards.
Member country being evaluated should answer all questions in great details and with all necessary appendices. Whenever a country visit is to be carried out, these documents shall be submitted to the Executive Secretary at least three months before the visit.
Standards and Evaluation Procedures (contd.)
Each member shall provide to the Executive Secretary a list containing the names of five experts, who are knowledgeable, trained and experienced in OECD Procurement System Assessment Method within three months of becoming a member.
Where the member country cannot provide five experts, that member should provide training for at least five of its citizens through APPRENS Secretariat.
The Management Committee shall make proposals to APPRENS concerning the composition of the evaluation team, bearing in mind that neutrality, professionalism and objectivity of the team are the uppermost factors.
The Evaluation Team shall compose three experts from different Members selected from the list of experts assisted by a member of the Secretariat. Teams may comprise of additional experts and where appropriate, scientific experts or consultants as well.
Standards and Evaluation Procedures (contd.)
Country visits shall be carried out at dates determined by the Executive Secretary in consultation with the host-country.
Before starting the country visit, a preparatory meeting shall take place in order to allow a preliminary exchange of views among the experts in the Team and the Secretariat.
The country visit shall end with a concluding meeting between experts in the team and the Secretariat to develop a common assessment of the country visit with respect to the Agreed International Standards.
The points made together with recommendations of the experts will be summarised at the end by the Secretariat and must be made public through publications and internet postings.
Members of APPRENS shall comply with the recommendations contained in the evaluation report and implement them fully, within the time limit set by APPRENS.
Standards and Evaluation Procedures (contd.)
Upon proposal by the Management Committee, APPRENS shall select two members to be responsible for preparing a compliance report indicating whether the Member has complied with the recommendations addressed to that Member in the evaluation report.
The Chair of APPRENS shall inform the Management Committee of any action taken to assist a member country to comply and of the failure of the Member to comply with the recommendations.
The Management Committee shall issue a public statement in the light of the report submitted by the Chair of APPRENS.
The summary of the information gathered by APPRENS in relation to an evaluation or compliance procedure shall be made public. The same shall apply to all APPRENS meeting reports.
Standards and Evaluation Procedures (contd.)
No personal data shall be published without the express consent of the person concerned.
Representatives of APPRENS, their substitutes, experts participating in evaluation teams, the Secretariat and other persons assisting APPRENS are required, during and after their term of office, to maintain the confidentiality of the facts or information of which they have become aware during the exercise of their functions.
A provision to the above effect shall be inserted in the contracts of scientific experts and interpreters recruited to assist APPRENS.
The End