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Seventh Public Procurement Forum Revisions to the UNCITRAL Model Law

Seventh Public Procurement Forum Revisions to the UNCITRAL Model Law. Hosts: Government of Georgia Co-sponsors: AsDB, EBRD, IsDB and WB Tbilisi, Georgia, 16-19 May, 2011. Caroline Nicholas UNCITRAL May 2011. Seventh Public Procurement Forum Revisions to the UNCITRAL Model Law.

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Seventh Public Procurement Forum Revisions to the UNCITRAL Model Law

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  1. Seventh Public Procurement ForumRevisions to the UNCITRAL Model Law Hosts: Government of Georgia Co-sponsors: AsDB, EBRD, IsDB and WB Tbilisi, Georgia, 16-19 May, 2011 Caroline Nicholas UNCITRAL May 2011

  2. Seventh Public Procurement ForumRevisions to the UNCITRAL Model Law UNCITRAL Model Law What is it? • Model for national procurement legislation • Cf GPA, APEC non-binding principles • Minimum standards for procurement Who uses it? • Economies in transition • Developing countries • MDBs as a tool for procurement reform

  3. Seventh Public Procurement ForumRevisions to the UNCITRAL Model Law Objectives of the UNCITRAL Model Law • Value for money/economy • Efficiency • Participation, competition • Fair treatment • Integrity and public confidence • Transparency

  4. Seventh Public Procurement ForumRevisions to the UNCITRAL Model Law Revisions to Model Law – why? • Update the text (1994) • Introduce e-procurement • Apply experience in implementation and use • No change to key principles and features • Started in 2004 • Consensus approach • New text will be adopted in June 2011 • Revised Guide available during 2011

  5. Seventh Public Procurement ForumRevisions to the UNCITRAL Model Law Key principles of Model Law (unchanged) • Transparency • Competition • Objectivity • These principles support achieving value for money and avoiding abuse

  6. Seventh Public Procurement ForumRevisions to the UNCITRAL Model Law Key features of Model Law • Mandatory requirements • To identify, specify items to be purchased • To determine which suppliers can participate • Open procedures unless justification for exclusion • Notices/advertisements • Pre-determined evaluation criteria and award procedures • Prescribed procurement methods/procedures • Challenge mechanism for breaches of rules/procedures

  7. Seventh Public Procurement ForumRevisions to the UNCITRAL Model Law Main changes in revised Model Law • New provisions: • e-procurement • Framework agreements • Conflicts of interest • New method for complex procurement • Strengthened provisions • Procurement methods (choice) • Evaluation of tenders • Remedies and enforcement Overall aim: more user-friendly

  8. Seventh Public Procurement ForumRevisions to the UNCITRAL Model Law A procurement law – does it mean a successful system? Guide to Enactment discusses need for • Political will • Supporting infrastructure • Best practice • Culture of ethics & integrity • Ability to question • Challenges • Sanctions • Civil society role Otherwise: law good, system not

  9. Seventh Public Procurement ForumRevisions to the UNCITRAL Model Law Context of reform (1) The theory • Developments in procurement • From rules and compliance • To management and performance The practical concern • Increasingly bureaucratic process?

  10. Seventh Public Procurement ForumRevisions to the UNCITRAL Model Law Context of reform (2) • Consistency with other texts • GPA • UNCAC • Harmonization with other texts? • EU Directives • MDBs standards • Different aims of different texts • Free/international trade, anti-corruption, national economic development …

  11. Seventh Public Procurement ForumRevisions to the UNCITRAL Model Law UNCITRAL and other systems - same objectives But • Differences in presentation • Template for national law • International agreements • Differences in terminology • Eg the successful tender • Differences in procedural requirements • Eg the public opening of tenders

  12. Seventh Public Procurement ForumRevisions to the UNCITRAL Model Law UNCITRAL and other systems Substantive differences? • Differences in procurement methods • Most methods very similar • Some methods more vulnerable than others • Some methods require greater capacity than others • Ability to pursue other policy goals through procurement

  13. Seventh Public Procurement ForumRevisions to the UNCITRAL Model Law Procurement methods – complex items • Two stage tendering • MDBs, UNCITRAL • Request for proposals with dialogue • UNCITRAL • Competitive dialogue • EU Directives Aim: to allow for interaction in complex procurement Issues: flexibility, transparency, capacity, control

  14. Seventh Public Procurement ForumRevisions to the UNCITRAL Model Law Other policy goals and procurement • Domestic SME/Industrial development • Capacity-building • Green procurement • Sustainable procurement • Offsets UNCITRAL allows selection to reflect these policies Free trade agreements require members to be treated equally

  15. Seventh Public Procurement ForumRevisions to the UNCITRAL Model Law Importance of holistic approach • Context of reform • Objectives • Capacity issues • Level of economic development • History, geography, legal traditions • Harmonized regimes • Regional approach

  16. Seventh Public Procurement ForumRevisions to the UNCITRAL Model Law For further details: http://www.uncitral.org/uncitral/en/commission/working_groups/1Procurement.html http://www.uncitral.org/uncitral/ru/commission/working_groups/1Procurement.html caroline.nicholas@uncitral.org THANK YOU

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