Private sector’s experience on public procurement practices in Rwanda

1. Private sector’s experience on public procurement practices in Rwanda Presented by: Arch. KAYUMBA Eudes

2. Private Involvement in Public Procurement MAIN AREAS WORKS • Buildings and Public works contractors SERVICE • Specialized services; Architects, Engineers, Accountants, Lawyers etc SUPPLY • Suppliers of various goods/products/services

3. Challenges in the Public Procurement Practices • Lack of appropriate legal framework to regulate professionals in the construction sector like (Architects, Engineers and Contractors registration boards) • Lack of sufficient training capacity for most players and means to enforce • Lack of motivation and commitment to make continuous improvement by private sector players aimed at best practices and professionalism

4. Private sector experiences in public procurement practices • Corruption which is very technical and difficult to prove immediately • Award of tenders based on poor project studies • Award of tenders to unqualified bidders • Malicious blackmail or elimination in the bid • Mistrust and lack of cooperation • Incompetent staff on the part of the procuring entities

5. Experiences cont’d • Delay in approval and payments of invoices • Delayed responses on queries/issues that require immediate decisions in procurement implementation • Lack of price revision mechanism when inflation is a reality • Evaluation and of bidders based on low prices sometimes without conformity to technical specifications

6. Experiences cont’d • Some tenders are advertised as only unit rates without specifying the actual quantities required • Due to urgency some tenders are awarded without being advertised • Some tenders are advertised and documents are delayed and then given on only unsigned soft copies • Unofficial tender documents lack of evidence especially when there is any bidder who is unsatisfied with the results on tender award processes and proceedings

7. Experiences cont’d • Payment of taxes on un paid invoices owed by Government and public entities to private entities and when they fail to do so, heavy penalties are imposed on them • Payment of taxes (VAT) received advances which is always reimbursed as the project progresses • Private entities are required to provide the guarantee of the money that is never given to them ie: 18% VAT and Profit 3%

8. Experiences cont’d • Inexistence of the national preference in our procurement law aimed at promoting the capacity of local companies while learning from the experienced foreign companies coming to work from Rwanda • Lack of reference prices to base on when evaluating bidders leading to always awarding tenders to lowest given prices where sometimes it has become impossible/difficult to accomplish these contracts by them

9. The Way Forward/ Suggestions • Involvement (Participation) of Private Sector in Procurement Decisions • Capacity Building of Private Sector in Laws and Regulations on Procurement • Categorization of contractors, consultants and Suppliers • Audit and Monitoring of Performance of Private Sector