CAPACITY BUILDING IN GOVERNMENT PROCUREMENT ______________________ THE EXPERIENCE OF GHANA Daniel Kwagbenu Independent

1. CAPACITY BUILDING IN GOVERNMENT PROCUREMENT ______________________ THE EXPERIENCE OF GHANA Daniel Kwagbenu Independent Consultant Email: trifaco@ghana.com January 17, 2003

2. DEFINITION OF CAPACITY • Capacity can be defined as the ability of individuals and organizations or organizational units to perform functions effectively, efficiently and sustainably

3. DEFINITION OF CAPACITY (Contd.) This definition has three important aspects: • it indicates that capacity is not a passive state but is part of a continuing process; • it ensures that human resources and the way in which they are utilized are central to capacity development; and • it requires that the overall context within which organizations undertake their functions will also be a key consideration in strategies for capacity development.

4. Presentation Overview • Snapshot History of Ghana’s Public Procurement System • Key Elements Of The Current Public Procurement System In Ghana • Functional Categorization Of Institutions • Current Professional Input & Capacity Building Efforts • Procurement Reform Proposals – The Way Forward.

5. Ghana’s Public Procurement System (Pre-Independence Era ) • Goods: Crown Agents – sole agents • Services: Procurement of experts on full time basis & secondment of officials • Works: Public Works Department (PWD) – force account

6. Ghana’s Public Procurement System (Immediate Post-Independence Era ) • Goods: Ghana Supply Commission (1960) – purchaser for all public institutions; Ghana National Procurement Agency (1976) – purchaser of bulk items • Works: Ghana National Construction Corporation; Architectural Engineering Services Corporation • Tender Boards: District, Regional & Central; (1967) – advisory, final decision vested in political heads; (1996) – composition expanded, approval & award • Donor procurement: relatively more competitive

7. Key Elements Of The Current Public Procurement System In Ghana • The Legal Framework • Institutional & Organizational Arrangements • Procurement Policies & Practices • Review Procedures

8. Areas of Concern • Lack of a unified system/multiplicity of practices • Lack of a comprehensive and well articulated public procurement policy • Lack of a comprehensive legal regime • Weak capacity of procurement staff • Lack of accountability • Loose institutional and organizational arrangements for processing procurement and for collective decision making in awarding of contracts • Absence of independent appeals body • Lack of independent procurement auditing function

9. Functional Categorization Of Institutions • Procurement Policy, Planning/Standards Formulation & Funding Institutions - Central Government Institutions - Local Government Institutions - Development Partners

10. Functional Categorization Of Institutions (Contd.) • Procurement Processing, Management & Monitoring Institutions: - Tender Boards - Ghana Supply commission - Supply & Materials Management Class of the Civil Service - Project Management Units/Dev. Partners - Auditor General/Audit Service

11. Functional Categorization Of Institutions (Contd.) • Enforcement & Grievance Redress Institutions: - Ministry of Finance - Office of The President - Judiciary/Legal System - Parliament - Ad Hoc Institutions

12. Functional Categorization Of Institutions (Contd.) • Interest/Pressure groups: - Associations of Professional Bodies - Civil Society Organizations - The Media/Press

13. Current Professional Input & Capacity Building Efforts • General lack of professional input in the public procurement and contracting process • Ad hoc arrangements including the creation of Project Management Units in MDAs/MMDAs • SMMC (1,300 employees) lack range of skills and expertise required to handle the full complement of procurement functions within public entities • Departmental heads or designated project officers who are not trained in procurement, undertake procurement functions

14. Current Professional Input & Capacity Building Efforts (Contd.) • Current capacity building efforts are limited and are not comprehensive • Absence of certification process Key players include: • Ghana Institute of Management & Public Administration (GIMPA): • World Bank supported training in procurement as part of institute’s regular programme • Polytechnics: • Courses in Purchasing & Supply

15. Procurement Reform Proposals – The Way Forward Goals: • Promote the use of public procurement as a tool for national development • Harmonize the application of procurement related rules in local and international conventions and treaties • Promote the integrity of the public procurement system and public confidence in the process

16. Procurement Reform Proposals – The Way Forward (Contd.) Reform Proposals: • Comprehensive procurement law • Standard Tender Documents • Relevant institutional and administrative structures • Oversight body • Capacity Building

17. Procurement Reform Proposals – The Way Forward (Contd.) Proposals on Capacity Building: • Public Awareness Campaign of the Reformed Public Procurement System •Initial Training of Procurement Practitioners •Dissemination of Information to Heads of Procurement Entities •Sustainable Training & Professional Development

18. Procurement Reform Proposals – The Way Forward (Contd.) • Capacity to support the new procedures would be built at all levels: - staff of procuring entities, - policy makers, - private sector and the civil society at large.

19. Procurement Reform Proposals – The Way Forward (Contd.) Capacity Building Plan: • In consultation with key stakeholder institutions • Modules on procurement courses (course materials, target groups, staged delivery and delivery method) • Detailed budget covering training programmes delivery