public procurement reform and modernization in sri lanka

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  1. 1. 07/22/15 Beijing, China 15 16 October, 2010 1 Public Procurement Reform and Modernization in Sri Lanka By.By. Veluppillai MohanVeluppillai Mohan 15-16 October 201015-16 October 2010 Beijing , ChinaBeijing , China
  2. 2. ABSTRACT 07/22/15 2 Beijing, China 15 16 October,
  3. 3. 1. This objective of this paper is to contribute to improved capacity in the conceptualization of public procurement reform and modernization in Sri Lanka after Tsunami disaster in 2004 with the implementation of environmental and social considerations in procurement, in line with internationally accepted principles and practices to recover the economy 2.A well functioning procurement system ensures; better value for money, increased efficiency and effectiveness of delivery, reduces the potential for corruption, positive impact on a countrys investment climate, non-discriminatory practices, transparency and accountability. Sustainable procurement is a key indicator of governments commitment to sustainable development. 3.Achieving sustainable development in practice requires that economic growth supports social progress as well as respect for the environment, that economic performance reinforces social equity, and that environmental policy is cost- effective without compromising the livelihood of future generations 07/22/15 3 Beijing, China 15 16 October, 2010
  4. 4. Introduction 07/22/15 Beijing, China 15 16 October, 2010 4
  5. 5. 07/22/15 Beijing, China 15 16 October, 2010 5 Sri Lanka
  6. 6. 07/22/15 Beijing, China 15 16 October, 2010 6 Tsunami Disaster In Sri Lanka on 26th December 2004
  7. 7. 07/22/15 Beijing, China 15 16 October, 2010 7 TSUNAMI DISASTER IN SRI LANKA
  8. 8. 07/22/15 Beijing, China 15 16 October, 2010 8 Tsunami Affected Areas in Sri Lanka
  9. 9. 07/22/15 Beijing, China 15 16 October, 2010 9 Affect of Tsunami Disaster in Sri Lanka
  10. 10. 07/22/15 10 Types Affect (Number/Cost) Fatalities 35,322 people Injured 21,441 people Widowed, orphaned, affected elderly and disabled 40,000 people Internally displaced people (IDPS) 516,150 people People who lost their source of livelihood 150,000 people (75% of the total fishing fleet) Value of lost assets $ 900 million Houses destroyed 88,544 No Schools destroyed or damaged 168 public schools, 4 universities, 18 vocational centers Schools used as camps for IDPs 446 No Schoolchildren affected 200,000 No Health facilities destroyed or damaged 97 No Tourism Infrastructure damaged 53 large hotels, 248 small hotels, 210 small enterprises Cultivated arable land affected by salinity 23,449 acres S Beijing, China 15 16 October, 2010
  11. 11. 07/22/15 11 DAMAGES CAUSED BY TIDAL WAVE (TSUNAMI) TO ROAD SECTOR Road Status ID No. Sourthern Province Colombo-Galle-Hambantota-Wellawaya Road (A2) Akurala Bridge Damaged 01 Seenigama And Hikkaduwa Section (96-99km) Breached (30-40 m long) 02 Magalle Bridge Damaged 03 Goiyapana Bridge Damaged 04 Weligama Bridges 2 Nos. 145/3 & 145/5 Damaged 05 Dondra Bridge (No.166/1) Approaches Damaged 06 Talalla Bend Damaged 07 North-East Province Ambepussa-Kurunegala-Trincomalee Road (A6) 197th km Retaining wall (20m) damaged. The road is passable 08 Trincomalee - Pulmoddai Road 22nd km -Salappawaru Bridge Approach (200m) washed off. The road is impassable 09 Beach Road 1st km Culvert damaged. Half the carriageway (75m) washed off. The road is passable 10 Beijing, China 15 16 October, 2010
  12. 12. 07/22/15 12 Road Status ID No Batticaloa-Trincomalee Road (A15) 116-121 km Washed off 11 126th km Half the carriageway (100m) washed off. The road is passable. 11 Thampalakamam-Kinniya Road Causeway damaged 12 Colombo-Ratnapura-Wellawaya-Batticaloa Road 334/1 Bridge (Komari Bridge) Collapsed 15 362-364 km Washed off 14 375 km Washed off 14 380 km Washed off 14 392 km Washed off 13 393 km Washed off 13 394 km Damaged 13 394/1 culvert Washed off 13 394/2 Washed off 13 395/1 Washed off 13 396/3- Periyakallar bridge cum causeway Washed off 13 398/1- Koddaikkallar bridge cum causeway Washed off 13 409/5 & 410/1 Culverts Washed off 13 412 & 415 km Part of the carriageway is damaged 13 Beijing, China 15 16 October, 2010
  13. 13. 07/22/15 13 Road Status ID No Batticaloa-Trincomalle Road (A15) 42/1 Bridge Bailey Bridge damaged 16 46-59 km Damaged 17 59/1 Bridge (Pannichchankeni) Washed off 18 60-78 km Washed off 19 Bar Road 4/2 Bridge Washed off 20 5/2 Bridge Damaged 21 3-5 km Damaged 21 Pottuvil-Panama Road 1-3 km Washed off 22 Bridge No:3/4 (Arugambay) Damaged 23 Peradeniya-Badulla-Chenkaladi Road 282/2 Bridge Damaged 33 North -East (North) Province Paranthan - Mullaitivu Road 48-52 13 km & 50/1 Causeway Damaged 24 Beach Road 0.9 km Washed off & still submerged 25
  14. 14. 07/22/15 14 Road Status ID No Mankulam-Mullaitivu Road 42-49 25 km Damaged 26 Soranpattu-Thalayadi Road 6.5-7.2 km Damaged 27 Point Pedro Maruthankerny Road 19-30 km 28 East Coast Road 0-8 - 4.74 km 29 Jaffna-Ponnalai-Point Pedro Road 42.6-55.4 km Damaged 30 Point Pedro Maruthankerny Road 0-8-4 km Damaged 31 Mullaitivu-Kokkilai Road 0-16 km Damaged 32 18/1 Bridge (Nayaru) Beijing, China 15 16 October, 2010
  15. 15. Remedial Action by GOSL for the Plan to Rebuild Sri Lanka Rapid Income Recovery Programme for SL 1.Involving Protection for who cannot work 2.Comprising Jobs or training for who can work. 3. Comprising support for the revival of small enterprises. All Inter ministerial focus group formed for enhanced employment initiatives in the infrastructure sector has been established to take forward the 2 and 3 component. 07/22/15 Beijing, China 15 16 October, 2010 15
  16. 16. 07/22/15 Beijing, China 15 16 October, 2010 16 Remedial Action by GOSL for the Plan to Rebuild Sri Lanka (Contd.) Income generation within the components for people who can work is justified by: a) the need to provide immediate and longer term employment and enterprise opportunities for the tsunami affected population now out of work; and b) the broader need to contribute to poverty reduction. Focus Group is to ensure that all GOSL bodies in infrastructure reconstruction use an optimal mix of local resources during the process so as to maximize opportunities for employment of low income and other affected groups.
  17. 17. 07/22/15 Beijing, China 15 16 October, 2010 17 Remedial Action by GOSL for the Plan to Rebuild Sri Lanka (Contd.) The income generation strategy for the RIRP envisions two phases ; 1. immediate social protection needs through Short term employment by means of Labour-Intensive (LI) techniques (labour and hand-tools only) which are essential but restricted to a narrow range of works. 2. comprising work which will be recurrent under regular budgets of the infrastructure Ministries where by shifting wisely and carefully from the current conventional equipment-based work methods to more Labour-Based (LB) techniques (where there is a shift in balance between labour and equipment in the way the work is specified and executed) for selected works components, it will be possible to realize significant numbers of new jobs without compromising on the quality on the works or without affecting the timelines and costs of the works
  18. 18. 07/22/15 Beijing, China 15 16 October, 2010 18 LITERATURE REVIEW
  19. 19. 07/22/15 Beijing, China 15 16 October, 2010 19 Public Procurement The acquisition of works, goods and services on the best possible terms - has historically been based on two criteria, price and quality, with a view to maximising benefits for the procuring organisation (Procurement Entity) along with value for Money considerations.
  20. 20. 07/22/15 Beijing, China 15 16 October, 2010 20 Public Procurement Objectives (a) Maximizing economy, timeless and quality resulting in least cost together with the high quality, (b) Adhering to prescribed standards, specification, rules, regulations and good governance, (c) Providing fair, equal, and maximum opportunity for eligible interested parties to participate in procurement, (d) Expeditious execution of works and delivery of goods and services, (e) Compliance with local laws and regulations and international obligations, (f) Ensuring transparency and consistency in the evaluation and selection procedures; and (g) Retaining confidentiality of information provided by bidders.
  21. 21. 07/22/15 Beijing, China 15 16 October, 2010 21 What is sustainable development? Sustainable development is about meeting the needs of the present without compromising the ability of future generations to meet their own needs. Source: World Commission on the Environment and Development, Brundtland Report 1983
  22. 22. 07/22/15 Beijing, China 15 16 October, 2010 22 Primary Objectives of Sustainable Procurement Procurement in the public sector should take place with the minimum of environmental impact and with respect for fundamental workers rights and human rights and Environmental and ethical/social considerations in public procurement shall contribute towards an efficient public sector and a competitive business sector
  23. 23. 07/22/15 23 Sustainable Procurement is procurement that integrates requirements, specifications and criteria that are compatible and in favour of the protection of the environment, of social progress and in support of economic development, namely by seeking resource efficiency, improving the quality of products and services and ultimately optimizing costs. (immediate and life cycle based). Definition of SP Beijing, China 15 16 October, 2010
  24. 24. 07/22/15 Seoul,Korea 26 - 28 August 2010 24
  25. 25. 07/22/15 Beijing, China 15 16 October, 2010 25 SD wants to bring together: ... respecting the rules of good governance Social progress: Human development, rights, education, reduction of poverty and inequality, security and social inclusion Social progress: Human development, rights, education, reduction of poverty and inequality, security and social inclusion Economic sustainability: Economic growth, full employment, effectiveness, integration of social and environmental costs Economic sustainability: Economic growth, full employment, effectiveness, integration of social and environmental costs Environmental balance: Preservation of natural resources, ecosystems, biodiversity; reduction of the ecological footprint Environmental balance: Preservation of natural resources, ecosystems, biodiversity; reduction of the ecological footprint The three pillars of SDThe three pillars of SD
  26. 26. 07/22/15 Beijing, China 15 16 October, 2010 26 Criminal Law Environmental Legislation Social Legislation International Legislation (Env/Social/Proc) Procurement Legislation Fiscal LegislationNational Legal Framework for SP National Legal Framework for SP National SD Priorities National SD Priorities National SD Priorities National SD Priorities
  27. 27. 07/22/15 Beijing, China 15 16 October, 2010 27 Integrating SustainabilityIntegrating Sustainability Concerns in the various steps of theConcerns in the various steps of the Procurement CycleProcurement Cycle
  28. 28. 07/22/15 28 Strategy/Action Plan for SRPP Presentation issues Main actions purchasers can undertake to introduce social/ environmental issues at the key stages of the procurement cycle: Identifying the need and planning the proc action Monitoring & Evaluating Defining Contract Requirements Selecting Suppliers Awarding the contract Administering contract execution
  29. 29. 07/22/15 29 Identification of Need Key stage to consider social/ environmental impacts Be aware of social/ environmental agendas/obligations and possible fit with your procurement Be aware of legislative requirements e.g. the Race Relations, Discrimination Acts, Landfill Tax Can you: Rethink? Eliminate? Reduce? Re-use? Re-cycle? Dispose? Apply the test of affordability and cost effectiveness What are the benefits/costs using procurement in this way? Ensure Procurement practices are open to bodies like SMEs and voluntary organisations
  30. 30. 07/22/15 30 It is about what the organisation wants to procure Key stage at which sustainability considerations should take place However, need, affordability and efficient and effective use of financial resources must be considered Normally performed by technical staff and internal customers (budget holders) Identify the Needs
  31. 31. 07/22/15 31 Bringing Environmental and Social Factors into Need (contd) Users knowledge of the market knowledge of potential environmental/social impacts and relevant regulations and legislation knowledge of products/services; influence on the development of new products/markets information on alternative products/services, alternative means of delivering functionality Those who might be involved in identifying needs include: Procurement managers First and second tier suppliers Environmental/Supply Chain/HR managers
  32. 32. 07/22/15 32 Role of the Procurement Function Procurers need to: Be aware of social/environmental policy priorities and legislation Appreciate the social/environmental implications of the products they buy Sources of information: 1. Environmental/social expertise in the Organisation 2. Suppliers 3. External sources of environmental/social information (Trade Unions, Government Bodies, etc.)
  33. 33. 07/22/15 33 .Wider Thinking Think in terms of solutions to problems not to products This will allow you to find environmentally/socially preferable solutions to problems rather than using products implying predetermined solutions Identify the Needs (contd) Some Examples: 1. Purchasing new fax machines or providing users with IT facilities to fax from their computers 2. Negotiating waste management contracts for packaging waste or working with suppliers to introduce returnable packaging for delivery of the products supplied
  34. 34. 07/22/15 34 Engaging with Suppliers SMEs, Woman and Disadvantaged-owned business should be helped to increase their participation in public contracts They operate in key public services They are well placed to provide public services in hard to reach areas How to achieve this? 1. Training programs, workshop and seminars on how to complete TDs 2. Dissemination of information on procurement opportunities at local level 3. Include the SME sector when testing the market
  35. 35. 07/22/15 35 Specification Ensure that specifications Are relevant e.g. contribute to characteristics of the product or service, and reflect all applicable social/environmental requirements Respect rules on use of standards Are transparent and non- discriminatory Could you. Use performance- based specifications? Use criteria from eco- labels? Use Production Process with less social risk? Use variants to encourage innovation? Is it appropriate to reserve for supported employment?
  36. 36. 07/22/15 36 Specifications Environmental/social issues can be part of the specifications provided they: Are relevant to the requirement Respect the rules on use of standards Do not restrict competition and participation of SMEs in the process Meet the test of need, affordability and cost-effectiveness Articulate the user requirements so that suppliers know what is needed Provide measurable requirements against which offers can be evaluated
  37. 37. 07/22/15 37 PEs are free to specify in terms of performance Performance Based Specifications Ex: Using performance based specs for procuring heating/ventilation systems for office spaces A performance based approach: focuses on the outcome/functionality desired gives the opportunity to be more innovative and to find the most cost-effective environmental/social preferable solution
  38. 38. 07/22/15 38 What a product is made of and how it is made can form part of the specs Specific Materials and Production Processes Ex: Specifying renewable energy, sustainable timber However, specific materials and production processes should link to the subject matter of the product 1. Specific materials: right to specify preferred materials (recycled materials) 2. Production process: right to include requirements on production method
  39. 39. 07/22/15 39 Variants to encourage innovation It is possible to define one/more options with higher environmental/social performance in addition to basic option At the award stage the purchasing entity can decide which option best meets its needs This should be based on criteria made clear in the STDs Acceptance of variants should be disclosed in contract notices
  40. 40. 07/22/15 40 Tender Evaluation Social/Environm ental award criteria can be used provided they Are relevant to the subject of the contract Are consistent with the fundamental principles of transparency, equal treatment and non discrimination Are consistent with criteria allowed by international regulatory framework, where they apply Help identify the bid that represents BVM from the point of view of the PE
  41. 41. 07/22/15 41 At this stage of the process PEs evaluate the quality of the tenders and compare prices on the basis of: Lowest price alone Best value for money (BVM) BVM is the optimum combination of whole-life-costs and quality to meet the users requirements BVM allows the use of environmental criteria The extent of use of social criteria depends on the procurement regime and memberships in international/regional agreements Tender Evaluation
  42. 42. 07/22/15 42 Award criteria must be: Award Criteria 2. Do not confer unrestricted freedom of choice on the PE should be clear, product-related and measurable 1. Relevant to the subject of the contract should relate to the intrinsic qualities of each bid and not to secondary issues (i.e. local development) should relate to the technical specifications
  43. 43. 07/22/15 43 Award criteria must: Award Criteria (contd) 3. Be advertised previously in contract notices/STDs should be listed in descending order and relative weighting should be given 4. Respect Community Law principles of non-discrimination/transparency/equal- treatment should be respected 5. Be distinct from selection criteria The criteria used for selection and award should be distinct
  44. 44. 07/22/15 44 The Life Cycle Costing Approach-three stages 1. Purchase and all associated costs Purchase Delivery Installation Commissioning, etc. 2. Operating costs Energy Spare Parts Maintenance 3. End-of-life costs Decommissioning Removal Examples of Award Criteria Purchase & associated cost Operating costs End-of-life costs cost time
  45. 45. 07/22/15 45 Use of Life-Cycle Costing to promote Environmental Objectives Savings on use of water, energy and fossil fuels Their costs are easy to calculate and have clear economical aspects Savings on disposal costs Can range from the cost of physical removal to paying for secure disposal If not taken into consideration, a bargain can turn into an expensive purchase Ex: Planning the Disposal Phase - the building sector
  46. 46. 07/22/15 46 Contract Management and Review Ensure that contract conditions are.. 1. Relevant to the performance of the contracts and the achievement of BVM 2. Not disguised technical specifications, selection or award criteria 4. Included in contract notices or tender documentation 3. Compatible with international regulatory framework, where applicable Where possible work with supplier for continuous improvement Where appropriate pass on public sector obligation to supplier
  47. 47. 07/22/15 47 Contract Management and Review Contract conditions relate to the performance of the contract They specify how the contract should be carried out They provide wide scope for addressing the environmental and social impacts Working with the supplier during contract performance is crucial to the achievement of sustainability objectives
  48. 48. 07/22/15 48 Contract Conditions and procurement policy 1. Contract conditions should: Be relevant to the subject of the contract Not add requirements that do not bring a proportionate benefit Be disclosed in advance (tender notices, STDs) Not be disguised Technical Specs, award criteria, selection criteria 2. Suppliers must accept the Contract T&C in order to be awarded the contract 3. Contract T&C must be compatible with international/regional legal/ regulatory frameworks for PP
  49. 49. 07/22/15 49 Contract Conditions: use of disadvantaged people Contract clauses can stipulate that a successful tenderer must employ: A certain percentage of long-term unemployed, apprentices, handicapped people and other disadvantaged groups however benefits must be weighed up against additional costs, including restriction of the supplier base
  50. 50. 07/22/15 50 Ex of Environmental Contract Clauses Transport of products and tools to the site Delivery of products to the site in concentrated form and then dilution on site Use of reusable containers to transport products to the site Delivery of products in bulk and outside peak traffic times How the service is performed Use of dosage indicators to ensure that appropriated quantities of cleaning products are used Disposal of used products or packaging from products Products or packaging taken away for reuse, recycling or appropriate disposal by the contractor Training of contractor staff Staff trained in the environmental impact of their work and the environmental policy of the authority in whose buildings they will be working
  51. 51. 07/22/15 51 Ex of Social Contract Clauses Engagement of staff and labour Arrangements for the engagement of all staff and labour, their payment, feeding, transport, housing Employment of local staff with appropriate skills and experience Rates of wages and conditions of labour Payment of rates of wages and observance of conditions of labour not lower than those prevailing in the trade sector or industry where the work is carried out (ILO Conv. 94) Information of Contractors personnel about their liability to pay personal income taxes under the laws of the Country, and the performance of Contractors duties in relation to deductions thereof imposed by Country Law Persons in the service of employer No recruitment, or attempt to recruit, Employers staff Labour Laws Abeyance to all labour Laws applicable to the Contractors personnel (H&S, immigration, legal rights, welfare, etc.) WB Master Document for Procurement of Works 2006
  52. 52. 07/22/15 52 Ex of Social Contract Clauses Working Hours Prohibition to carry-out work outside the working hours stated in the contract Statement of exceptions in the contract, and consent of the Engineer Facilities for Staff and Labour Provision of accommodation and welfare facilities for the Contractors Personnel Health and Safety Precautions for maintenance of Contractors personnel H&S Appointment of an accident prevention officer at the site and reporting on H&S conditions HIV-AIDS prevention Contractors Superintendence Provision of superintendence to plan, arrange, direct, manage, inspect and test the work. Contractors Personnel Skills, experience and qualification requirements for Contractors personnel WB Master Document for Procurement of Works 2006
  53. 53. 07/22/15 53 Ex of Social Contract Clauses Disorderly Conduct Precautions to prevent any unlawful, riotous or disorderly conduct by among Contractor's personnel and to preserve peace and security of persons and property on and near the site Foreign Personnel Provision of residence visas and work permits to foreign personnel and respect of applicable laws Arrangement of return to their domicile or place where recruited Supply of foodstuffs and water Arrangement of a sufficient supply of suitable food at reasonable prices Provision of adequate supply of drinking and other water Measures against insect and pest nuisance Provision of superintendence to plan, arrange, direct, manage, inspect and test the work. Alcoholic liquor or drugs No provision, disposal, barter, import of alcohol and drugs, except than if otherwise provided by the Country Law WB Master Document for Procurement of Works 2006
  54. 54. 07/22/15 Seoul,Korea 26 - 28 August 2010 54 Ex of Social Contract Clauses WB Master Document for Procurement of Works 2006 Arms and Ammunition Prohibition to give, barter, dispose of any arms and ammunition of any kind Festival, Religious Customs Funerals Respect of the Countrys festivals, days of rest and religious or other customs Responsibility for arrangements of funerals for local employees who may die while engaged upon the Works Prohibition of Forced, Compulsory Labour Prohibition to employ any forced or compulsory labour Prohibition of Child Labour Prohibition to employ child labour Employment Records Skills, experience and qualification requirements for Contractors personnel Reporting on Contractors personnel and equipment employed
  55. 55. 07/22/15 55 Monitor and Control Monitor supplier performance and compliance with contract conditions related to social and environmental objectives Assess the impact of the procurement action upon the target area over a pre-determined time period Undertake review of targets/objectives and feed lessons learned back into your SP strategy Share information on achievements and future targets inside the organization and with the business community and other stakeholders
  56. 56. 07/22/15 56 EMERGING NEEDS OF TSUNAMI AFFECTED SRI LANKA The role of Sustainable procurement in implementing the Rapid Income Recovery Programme RIRP . 1) The first priority is the re-construction of houses and related services in the tsunami affected areas and the construction of new houses and related services and the envisaged site clearing operations should the planned 100m house free zone from the sea be declared, 2) There a number of employment intensive low volume gravel road projects and 3) There is an increasing demand for surfaced roads
  57. 57. 07/22/15 57 RESULTS/OUTCOMES THROUGH FOLLOWING AGENCIES FUNDED PROJECTS OF THE TSUNAMI AFFECTED AREAS THROUGH SUSTAINABLE PROCUREMENT 1. World Bank(WB) 2. Rebuilding Community Infrastructure & Shelter Project Japanese. 3. Spain funded 4. USAID 5. Asian Development Bank (ADB) Project 6. Trincomalee Integrated Infrastructure Projects (TIIP).
  58. 58. 07/22/15 Beijing, China 15 16 October, 2010 58 RESULTS/OUTCOMES OF THE TSUNAMI AFFECTED AREA PROJECT THROUGH SUSTAINABLE PROCUREMENT WATER SUPPLY SCHEMES New BRIDGES HOUSING SCHEMES FISHING HARBOUR SCHOOLS
  59. 59. 07/22/15 Beijing, China 15 16 October, 2010 59 RESULTS/OUTCOMES OF THE TSUNAMI AFFECTED AREA PROJECT THROUGH SUSTAINABLE PROCUREMENT ROADS PROJECTS
  60. 60. 07/22/15 Beijing, China 15 16 October, 2010 60 RECOMMENDED ACTIONS When buying products, to reduce the social and environmental impact of purchasing decision. Fit for the purpose and value for money Biodegradability- Design for disassembly- Minimum use of virgin and non-renewable materials Resource Efficiency-Running Fault controls to prevent unnecessary Health and safety standards- Local production- Maximum durability, reparability, reusability, recyclability and upgradeability- Minimum packaging Maximum use of post-consumer materials - Non (or reduced) polluting with minimum use of toxic chemicals, CFCs, ozone and other pollutants- Ethically sourced
  61. 61. 07/22/15 Beijing, China 15 16 October, 2010 61 CONCLUSIONS Met Sri Lankas Needs Fulfilling the duty requires an integrated approach to pursuing economic, social and environmental well-being and all three components are central to success. Progress has been made and there are initiatives which have reduced environmental impact and saved money. To achieve value for money, procurement decisions need to be based on a thorough understanding of costs and benefits along with social and environmental impacts.
  62. 62. 07/22/15 Beijing, China 15 16 October, 2010 62 Benefits 1. Reduces adverse environmental impacts arising from Government procurement action, waste to landfill, saves water, reduces greenhouse gas emissions, decreases air and water pollution, saves money through re-using materials and products, and reduces consumption of both natural and processed resources. Ensures the health and safety of the community. 2. Makes more efficient use of public resources. Reduces costs through greater energy efficiency, reduced waste disposal, and reduced risk management. Lowers the cost for products over their life cycle 3. Stimulates the local and global markets to innovate and produce more sustainable products and services 4. Demonstrates governments are committed to achieving sustainable development objectives.
  63. 63. 07/22/15 Beijing, China 15 16 October, 2010 63 Barriers 1.habit and the difficulty in changing procurement behaviour, 2.lack of suppliers of sustainable assets, suppliers or services, 3.complexity of comparing costing/value for money assessments, 4. the difficulty of including factors broader than environmental considerations, and 5. a perception that the process and outcomes are more costly or time consuming.
  64. 64. 07/22/15 64 Drivers 1. effective organization wide policies to ensure that everyone is aware of the strategy, 2.training and guidance to help all of those involved in procurement to understand sustainable procurement and whole life costing; 3.regular audits and monitoring to assess where your organization is in the context of sustainable procurement and where you could make further progress in this area commitment to sustainable development as an organizational policy 4.supporting and educating suppliers/creating markets linking up with other organizations to learn from their experience and 5.pooling procurement by forming procurement consortium where relevant. Beijing, China 15 16 October, 2010
  65. 65. 07/22/15 Seoul,Korea 26 - 28 August 2010 65 THANK YOU THANK YOU