1

Fostering Aid Effectiveness:Program-Based Approaches and What it means for Procurement?

Presented by Jocelyn ComtoisMay 8 2006

International Conference Governmental Financial

Management

2

Paris Declaration on Aid Effectiveness

Endorsement on March 2, 2005Focus in five areas: ownership, alignment, harmonization, managing for results, and mutual accountability for which there are 56 partnership commitments.Coherent model of development cooperation aligned with developing country priorities and the use of Partner country systems.117 Countries and Organisations have adhered to the Paris Declaration

3

Paris Declaration Progress Indicators:

OWNERSHIP: (1) ALIGNMENT (7)

2ab and 5ab: Strengthen and use country Financial and Procurement systems

HARMONIZATION (2)MANAGING FOR RESULTS (1)MUTUAL ACCOUNTABILITY (1)

4

Forums developed to foster implementation of the undertakings/indicators under the Paris Declaration

Joint Venture Public Finance ManagementJoint Venture ProcurementJoint Venture Management for development resultsJoint Venture Monitoring

5

Benchmarking Tool for Partner Country Procurement Assessment Capacity

The methodology will use Baseline Indicators and Compliance indicators.The Baseline Indicators will be regroup under 4 pillars which are broken-down in a number of sub-indicators

Legislative and Regulatory FrameworkInstitutional Framework and Management CapacityProcurement Operations and Market PracticesIntegrity and Transparency of the Public Procurement System

6

Example Applying of Draft Methodology

Pillar I – Legislative and Regulatory Framework

Indicator 1. Public procurement legislative and regulatory framework achieve the agreed standards and complies with applicable obligations.

• 8 Sub-indicators

Indicator 2. Existence of Implementing Regulations and Documentation

• 6 Sub-indicators

Score 32 out of 42

7

Example Applying of Draft Methodology

Pillar II – Institutional Framework and Management Capacity

Indicator 3. The public procurement system is mainstreamed and well integrated into the public sector governance system.

• 4 Sub-indicators

Indicator 4. The country has a functional normative/regulatory body.

• 4 Sub-indicators

Indicator 5. Existence of institutional development capacity.

• 4 Sub-indicators

Score 10 out of 36

8

Example Applying of Draft Methodology

Pillar III Procurement Operation and Market Practices

Indicator 6. The country's procurement operations and practices are efficient.

• 4 Sub-indicators

Indicator 7. Functionality of the public procurement market

• 4 Sub-indicators

Indicator 8. Existence of contract administration and dispute resolution provisions.

• 3 Sub-indicators

Score 11 out of 33

9

Example Applying of Draft Methodology

Pillar IV Procurement Operation and Market Practices

Indicator 9. The country has effective control and audit systems

• 5 Sub-indicators

Indicator 10. Efficiency of appeals mechanism• 5 Sub-indicators

Indicator 11. Degree of access to information• 2 Sub-indicators

Indicator 12. The country has ethics and anticorruption measures in place

• 7 Sub-indicators

Score 17 out of 57

10

Applying Results of the Methodology

0123456

Pillar I

Pillar II

Pillar III

Pillar IV

ExampleMaximum

11

Foreseeable Next Steps

Terminate version 3 by end of May“Road test” of the final methodology with Partner countries.Regional meeting to address the results of implementing tool in real case situationJV meeting to share results.

12

Summary

Therefore the JV on Procurement:Provide an harmonize methodology based on best practices;Risk assessment tool and risk mitigating strategy associated with capacity development;Ultimately foster increase use of countries system; andProvide methodology to measure progress overtime.

13

Results

Partners and donors can tangibly demonstrate how they meet fiduciary obligations, and how risks are managed and mitigated.Ultimately citizen of partners and donors are reassured of the maximization of Aid Effectiveness.

14

QUESTIONS / COMMENTS