Financing For Development-From Billions to Trillions

The Role of Public Procurement in Mobilising Resources for Sustainable Development

ALECK MUNHAMO, PROCUREMENT OFFICER, AFRICAN UNION

Billions Trillions Action

This presentation is in partial fulfilment of the Financing Foe Development course by the World Bank and addressed to Governments which are recipients of ODA

Billions Trillions Action

Financing for Development is anchored on two main pillars

RESOURCE MOBILISATION

RESOURCE MANAGEMENT

PROCUREMENT

Billions Trillions Action

• Critical aspect is the management aspect as it enables resource deficient countries to attract

both private and public finance

• Pivotal to this is the process of application of the funds- Procurement

Billions Trillions Action

Resource Management in Public Sector demands accountability and transparencyProcurement plays an important fiduciary duty in public sector management

MDBs review procurement systems before granting loans

Investors need to have confidence in the country’s public expenditure systems, -is ODA or domestic resources spent in transparent manner??

Billions Trillions Action

A Conducive environment for management of resources entails

Corruption Impedes Resources M

obilisation

Billions Trillions Action

Good procurement is critical to ensuring effectiveness of development projects

A Substantial amount of ODA is spent on Procurement of Goods, Services and Works.

According to the AfDB, of the total contract amount awarded in 2011, US$296 million or 12.6% were for procurement of goods, US$1,861 million or 79.5% were for works and US$184 million or 7.9% for consulting services.

Billions Trillions Action

Given The significant amounts of ODA spent through procurement, MDBs put emphasis on good governanceThe African Development Bank Group with other Multilateral Development Banks (MDBs), has been making continuous efforts to streamline the policy and procedures for procurement in order to improve the quality, efficiency and transparency of the procurement for its projects across the region (AfDB)

The Above was reiterated by Ngozi Okonjo-Iweala in her presentation on Improving the Investment Cimate

Billions Trillions Action

Countries need to create an environment conducive for investment

• Make doing business easier

• Consistency and Predictability of policies

• Efficient tax administration systems

Billions Trillions Action

Procurement as a conduit for Climate Financing

• Procurement and Carbon Financing

• Award more points for Company’s that finance Carbon

Billions Trillions Action

Evaluation of Bids in Procurement should include sustainability,

• Initiatives to mitigate Climate Change

• Contribution to clean air

• Payment for carbon emissions

• Use of renewal clean energy

Billions Trillions Action

CONCLUSIONODA Recipients need to create conducive environment for mobilisation of resources.

Need good management- Procurement as Tool for Accountability and Transparency

Use Sustainability criteria in evaluation to assist in management of Climate Change

New approach to development management is an all inclusive approach