eProcurement

1. eProcurement Fiduciary Forum

2. 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

3. Ease of Doing Business 2009

4. How to Transform Governments?

5. World Bank Integrated E-Gov Projects Portfolio

6. 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 SociétéGénérale 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)

7. Savings from e-Procurement in Sao Paulo, Brazil (2004) Investment recouped in 5.7 days Source: Adapted from Elena Crescia, Presentation at World Bank on ‘Measuring E-Gov impact: The Experience of Sao Paulo, Brazil’, February 9, 2006

8. 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

9. 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)

10. Savings (Examples) 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 mndue to tender discounts in the same year (http://ccaharyana.gov.in/e-procurement.htm) KOREA www.g2b.go.kr ROMANIA www.e-licitatie.ro BRAZIL www.bec.sp.gov.br INDIA eprocurement.gov.in

11. 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

12. Sample Interface GTI eGP Page