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procurement

Procurement Observatories continue to deliver in India

Shanker Lal's picture
Public meeting in India.
Photo: Simone D. McCourtie / World Bank

As I have blogged earlier, the World Bank is supporting Procurement Observatories in India. Procurement Observatories are civil society organizations, whose goal is to collect, analyze and present public procurement policies and data to the public in a more understandable way. These initiatives, inspired by similar approaches in Nigeria, allow for greater transparency of procurement practices.

While the aim of these observatories is to become self-sustaining and independent from World Bank support, recent progress from three such observatories in India show that these Procurement Observatories are on the right path.

Bank supports launch of certificate course on contractual dispute resolution in India

Shanker Lal's picture
Powerlines in Mumbai. Photo: Simone D. McCourtie / World Bank


India is the fastest-growing major economy in the world with significant Government investments in infrastructure. According to estimates by WTO and OECD, as quoted in a report from the United Nations Office on Drugs and Crime, India: Probity in Public Procurement, the estimated public procurement in India is between 20 and 30 percent of GDP. 

This translates to Indian government agencies issuing contracts worth an estimated US$ 419 billion to US$ 628 billion each year for various aspects of infrastructure projects. Ideally, in contractual agreements no disputes would arise and both sides would benefit from the outcome. However, unexpected events occur and many contracts end in dispute. Contractual legal disputes devoid project benefits to the public as time and resources are spent in expensive arbitration and litigation. As a result, India’s development goals are impacted.

Successful procurement is not just a set of activities, it is a strategy

Elmas Arisoy's picture
 Ho Chi Minh City, Vietnam. Photo: Tran Viet Duc / World Bank


Many Bank-financed projects, especially those implementing large and complex contracts continually face high risk of implementation delays, and procurement is the most frequently used scapegoat.

What has gone wrong in those cases?

At the onset, borrowers are requested to prepare a detailed procurement plan for the first 18 months of project implementation, which is carefully reviewed and approved by the Bank before loan negotiations and the projects are then declared "good to go."
But the reality is almost never that rosy.

​6 things to know about the new World Bank Procurement Framework

Ravi Kumar's picture
Available in ArabicChinese. French and Spanish
School children in Lebanon. Photo © Dominic Chavez/World Bank

Students in public schools without textbooks at the start of the year. Health centers in villages without even the most basic medications. Oftentimes procurement is to blame.

An efficient procurement system isn't just a good idea, it's a necessary tool for all governments (local and national) to function properly and deliver public services.

Keeping pace with global trends, on July 1 the World Bank will roll out the new Procurement Framework for countries that procure goods and services under Bank-finance projects. The new framework will be implemented for all investment projects with a Project Concept Note on or after July 1, 2016.  Led by the Global Governance Practice (GGP) with support from Operations Policy and Country Services (OPCS), the framework is designed to increase flexibility, efficiency, and transparency of procurement process, to better meet the needs of client countries.

So, what will the World Bank's new Procurement Framework do?

Imminent! Transformation of the World Bank’s Procurement Framework

Robert Hunja's picture
World Bank. Photo © Dominic Chavez/World Bank

In keeping with recent global trends in the procurement arena, the World Bank is transforming and modernizing its procurement framework. 

In the private sector, companies have long viewed maximizing of supply chains as key to healthier bottom lines.  In the public sector, many governments have been moving from overly rule-based procurement systems to systems that focus on performance and achievement of development goals. 

Change in (flight) plan: Just three months to fix Vanuatu’s runway

Christopher J. De Serio's picture
Port Vila, Vanuatu. Photo credit: Phillip Capper


Overjoyed at the emergency rehabilitation of Bauerfield International Airport, Vanuatu’s gateway for travelers, Linda Kalpoi, the general manager of the Vauatu Tourism Office, was in buoyant spirits as she attended the May 6 ceremony announcing the repair’s completion.
 
Vanuatu yearned for good news. Still recovering from Cyclone Pam’s devastation in March 2015, it was hit by political turmoil after the unprecedented conviction of 14 members of Parliament in October 2015. Then, on January 22, 2016 – the same day Ni-Vanuatu citizens were casting ballots for a snap election – Air New Zealand suspended flights due to safety concerns over the runway condition. Qantas and Virgin Australia followed suit a week later. With only a few airlines still operating, the country lost a sizeable chunk of international tourists. 
 
Airport planning in Vanuatu has long been fraught with differing opinions and priorities. Multiple governments with conflicting visions for developing international air transport, as well frequent changes to the staff and leadership of Airports Vanuatu Ltd (AVL), had left the runway in critical need of repair.

Making procurement smarter: Lessons from the Amazon

Laura De Castro Zoratto's picture
 In the Amazon region of Brazil, near Manaus. Brazil. Photo: © Julio Pantoja / World Bank

When the word “Amazonas” is mentioned, what do you think of? Mythical rainforests and winding rivers?  The “lungs of the world”? A center of procurement excellence in the Brazilian federation?

Innovative procurement practices help dairy sector in India

Shanker Lal's picture
Milk collection center - India. Photo: National Dairy Development Board


India is the world’s largest producer as well as consumer of milk and milk products. India nevertheless faces a shortage of milk and milk products due to increasing demand from the fast growing middle class in the country.

The National Dairy Plan Phase I (NDP-I), a Central Sector Scheme of the Government of India, which is supported by National Dairy Support Project (NDSP), aim to increase milk productivity and market access for milk producers, which are both necessary to meet the growing demand for milk. NDP-I is being implemented with a total investment of about US$350 Million, out of which the Bank has extended a Credit of US$219 Million through the NDSP.

The National Dairy Development Board (NDDB) is the main implementing agency for the NDP-I. At the decentralized level, NDP-I is being implemented by about 150 end‐implementing agencies (EIAs) scattered over the country. 

The Project involves some innovative procurement practices and improvements in upstream milk supply chain, which are described below:

Lessons from China: Selecting the right contractors for large projects

Jianjun Guo's picture



Selecting contractors with the right capacity and experience for large value works contracts is critical for implementation and timely completion of the works.

How do you achieve that?  

The China’s Fujian Meizhou Bay Navigation Improvement Project offers some lessons of how the Bank team successfully worked with the client in selecting the right contractors through appropriate procurement strategy and due diligence.

The total project cost is US$138 million and the Bank loan is US$50 million. The project seeks to improve the capacity of the main navigation channel in Meizhou Bay and enhance the management capacity of the Meizhou Bay Harbour Administration Bureau.

Shining some light on public procurement in India

Shanker Lal's picture
 Photo: © Simone D. McCourtie / World Bank

In large, developing countries the government spends much of its budget on social safety net programs and building infrastructure, which involves procuring goods and services. But the ways in which these goods and services are purchased – the procurement process – can sometimes be inefficient and opaque to citizens. The procurement data is not easy to find or easy to understand; the policies are not always clear. In short, taxpayers often don’t know how their money is being spent.

In India, with help from the World Bank, there’s a promising initiative that is trying to address this problem, which is fundamentally one of transparency and accountability in government. But it is entering a critical new phase, in which it will need to become more self-sufficient and wean itself off of the initial World Bank seed funding.

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