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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