eProcurement

Fiduciary Forum

Why eGP

• Part of larger institutional mandates, GTI, GAC • While technology alone cannot transform

governments, governments today cannot transform without technology

• Maturing in terms of evidence, lessons learnt and best practices

• Will accelerate PSD • Huge potential to leverage technology for

government transformation

Ease of Doing Business 2009

How to Transform Governments?

World Bank Integrated E-Gov Projects Portfolio

Projects under Implementation:

Tunisia, Sri-Lanka, Ghana, Vietnam, Ethiopia, Rwanda, Kenya, Mongolia, Cambodia, Romania, Mozambique, Tanzania, Burundi

Country Approved

OECSHorizontal and vertical activities including legal and regulatory framework, standards, interoperability, security, financial management etc.

Rwanda Portals for RPPA

MexicoPPPs in e-Government, including study on outsourcing and development of pilot projects

Kenya Backbone infrastructure for broadband, eGovernment applications

Preparation

Advanced Benin

Initial stage Armenia, Georgia, Jordan, Moldova,

Key Examples of e-Government Impact

• Karnataka, India – Land Registration (Bhoomi)– 20 million land records computerized– Investment of $4.2 million– Savings of $18.3 million in bribes annually

• Korea’s e-Procurement– Investment of $80 million– $2.7 billion in annual savings– All processes fully automated– Corruption eradicated

• Ghana’s Customs (GCNet)– Created as a joint venture company with Société Générale de Surveillance (SGS, 60%),

Government (20%), Ghana Shippers Council (10%), and two local banks (5%, each)– Equity of $5.3 million– 49% increase in customs revenues in first 18 months and reduced clearance times

(from 2 - 3 weeks to 1 - 2 days)

Source: Adapted from Elena Crescia, Presentation at World Bank on ‘Measuring E-Gov impact: The Experience of Sao Paulo, Brazil’, February 9, 2006

Savings from e-Procurement in Sao Paulo, Brazil (2004)

Costs

IT development implementation

$890,000

Data process and integration

$446,927

Training $55,866

Hardware $279,330

Total $1,672,123

Maintenance $534,078 per annum

Savings

Savings in government processes

$34 mill

Savings in government prices (paid 25% less in prices)

$73 mill

Subtotal savings for government

$107 mill

Savings for Private Sector

$35 mill

Total savings: $142 mill

Investment recouped in 5.7 days

Steps & Sequencing Impact, e-GP

Publish and distribute public procurement information (online portal)Support public procurement transactions (e-Tendering, Purchasing

from e-Catalogues, e-Reverse Auctions)Monitor and manage public procurement (PMIS linked to FMIS and

other systems)

Improved governance due to increased transparency of public procurement information

Reduced opportunity for fraud & corruption due to automated procedures

Increased efficiency due to price transparency, competitive prices, and lower transaction costs

Public procurement monitoring

Successful Cases & Impact Implementation

e-GP is a management and reform program, not just HW & SW

Strong government leadership (e.g. Korea, Mexico at presidential level)

Appropriate implementation framework (e.g. procurement policy, legislation, capacity building, standards)

Infrastructure development (connectivity)

Savings (Examples)

KOREA

ROMANIA

BRAZIL

INDIA

www.g2b.go.kr

www.e-licitatie.ro

www.bec.sp.gov.br

eprocurement.gov.in

Total volume of US$ 44 bn in 2006 with transaction cost savings of

US$ 4.5 bn (http://www.pps.go.kr/english/ )

650,000 electronic auctions between 3/2002 and 10/2006 with savings

of US$ 178 mn (http://www.mcti.ro/index.php?id=28&L=1&lege=1289)

From 2000 to 2006, 51% savings in transaction costs and 25.5% in

price reductions (http://www.relogiodaeconomia.sp.gov.br/br/home_results.asp)

US$ 3.6 bn of transactions in 2005 with savings of US$ 238.2 mn due to tender discounts in the same year(http://ccaharyana.gov.in/e-procurement.htm)

eGP Reference Guide - A single on-line platform compiling the information available on e-GP

- Will allow to quickly find and search through the e-procurement documents

- Referenced documents come from MDB’s working group on eGP, the EU, case studies and materials presented at eGP conferences

- It will have a mechanism for soliciting contributions from the Community of Practice members

- The following are the names of the main sections: • eGP implementation as part of a broader procurement reform • e-Procurement functional phases • Leadership and change management• Implementation and business models • Legislation, regulation and policy• Infrastructure and applications • Standards• Industry solutions • Country case studies and best practices • Monitoring and evaluation • Training resources

Sample Interface GTI eGP Page