bangladesh's experience - public financial management and procurement
TRANSCRIPT
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BANGLADESH EXPERIENCEBANGLADESH EXPERIENCE
PUBLIC FINANCIAL MANAGEMENTPUBLIC FINANCIAL MANAGEMENT
ANDANDPRPROCUREMENTOCUREMENT
A presentation for
Concurrent Session on
Public Financial Management and Procurement
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ContentsContents
Financial Management: Public Financial Management Reforms
Lessons Learnt
Harmonization, Alignment and Simplification-broad picture
Future Challenges
Procurement
Procurement Reform
Lessons Learned & Contributions to
Harmonization Use of Country Systems: Procurement in relation
to PFM
Future Challenges
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PFM ReformsPFM Reforms Joint Diagnostic studies :
Committee on Reforms in Budgeting andExpenditure Control ( CORBEC) DFID and GOB;
Way Forward for FM Reform in Bangladesh- DFIDand GoB
Country Financial Accountability Assessment(CFAA)- World Bank, UNDP and GoB
PFM indicators as a part of on-going Joint PublicExpenditure,Procurement and Financial
Management Review -DFID, WB & GOB
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PFM Reforms (continued)PFM Reforms (continued)
Major PFM Reforms: Policy & Operational
Reforms in Budgeting and Expenditure Control(RIBEC), Financial Management Academy ( FIMA),Reforms in Govt Audit ( RIGA)- DFID
Strengthening the Office of Comptroller and
Auditor General (STAG) UNDPISMOF & EEFM- ADB
Strengthening GOBs FM Capacity and BuildingInstitutional Capacity of the Office of the C & AG -World Bank
Development Support Credit I, II and III- WorldBank
ROSC Fiscal Transparency IMF and
Financial Management Reform Program FMRP
(DFID & Dutch)
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PFMPFM --Lessons from HarmonizationLessons from Harmonization
Lack of common understanding and propercoordination among various Ministries andGovt Departments
Differing Development Assistance Strategy byDonors
PFM priorities often not synchronized and lost
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HarmonizationHarmonization-- Broad PictureBroad Picture
PEDP II: 10 donors under one implementation Framework-ADB leads
Common PFM system (Reporting and Auditing)
Multi- lateral donors like WB and ADBharmonized individual requirements ( CommonWithdrawal Application, audit reporting period)
Agreed FM Improvement Plan
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HarmonizationHarmonization-- Broad Picture (continued)Broad Picture (continued)
HNPSP:Pool and Non Pool Donors under common PFMsystem - WB leads
NO PIUs ; No Special Account
Govt spent first including donors share
Agreed Audit TOR with C & AG
Common Audit and Reporting
Strengthen FM Framework includingimprovement plan for the Sector
Alignment of donor assistance on PFM along with
GoB priority plans, PRSP, ROSC, CAS, PERPFM Task Force a common platform by donors andGovt led by MOF
An Aid Governance Group (ERD) consisting of Donorand Govt Country Harmonization Action Plan
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Challenges :Challenges :
DPs and GOB work under an uniformdevelopment assistance strategy for PFM
Progress Monitoring mechanism and timelyadjustments of action plan
More Flexibility and Simplification of DPs FMpolicy and procedures to achieve bettercountry outcome
More awareness on the value addition on
Harmonization and Alignment Approaches More delegation of responsibility and
authority at country level
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Procurement Reform: backgroundProcurement Reform: background
Low Level ofpublicprocurement
performanceconstrainednational
development
The CountryProcurementAssessment Report(CPAR) identifiedKey deficiencies inthe public
procu
rement system
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CPAR Findings & Recommendations (2001):CPAR Findings & Recommendations (2001):
Opaque public procurement practices are the singlemost serious issue affecting whole public sectorsactivities
Set up a Public Procurement Policy Unit
Issue Public Procurement Rules
Streamline Proc. Process & Financial Delegation
Develop Procurement Management Capacity Publish Contract Awards
Introduce Appeal Procedures
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Proc. Reform & AchievementsProc. Reform & Achievements
DSC II & DSC III
Procurement Law & Performance triggers
IDA Credit : August 2002 / ~ $5 million/ 3 years
Bangladesh now has a transparent public procurement regulations,accepted by most DPs
Established permanent procurement policy unit
Mandated harmonized procurement regulations & STDs
Publishing contract awards
Mandated annual procurement review (audit)
Mandated independent appeal procedures for protests
Streamlined financial powers & proc. approval process
Developed national trainers & Institutionalizing capacity
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Contributions to HarmonizationContributions to Harmonization
Aid Governance Group- ( ERD) Harmonizing Govt andDonors procurement requirement along the Procurement
Regulations
Primary Education Development Program II
Countrys own harmonized procurement regulations forall local procurement (10 DPs & GOB agreed)
Local- 85% of procurement in PEDP II.
All local procurement from common pool (DPs)
Annual procurement review (audit) as per GOB Proc.Regulations (by independent consultant)
HNPSP:
Harmonized Procurement Procedures & agreed plan for all
local procurement
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Contributions to HarmonizationContributions to Harmonization
Seven IDA funded projects including other DPSusing Government Regulations for all localprocurement
Piloting use of PFM framework for procurement aspart of PFM baseline and performance indicators
Integrated analytical review of procurement withPFM and Public Expenditure group- World Bank,
DFID and ADB
Centralized MIS in CPTU/IMED (using aboveindicators) for effective monitoring of procurementoutcomes and performance (CPTU Website:cptu.gov.bd)
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F
uture ChallengesF
uture Challenges
Compliance Monitoring of ProcurementReform
Roll out the capacity building across thecountry institutions including private sector
Piloting E-procurement
Mindset and Behavioral change by all parties
and Sustainability of already established CPTU
and corresponding strengthening of IMED.