Public Procurement Regulatory Authority P.O. Box 49 Tel: +255 22 2121236/7, Fax: +255 22 2121238

1. Improving the Efficiency of Public Procurement in Tanzania Presentation in the 4th EAPF, Kigali Rwanda Welcome Karibuni Public Procurement Regulatory Authority P.O. Box 49 Tel: +255 22 2121236/7, Fax: +255 22 2121238 Email: ceo@ppra.go.tz Websit: www.ppra.go.tz Dar-es-Salaam Tanzania

2. Overview of the Presentation • The journey • The need to improve efficiency • Recent efforts to improve efficieny • Challenges • Way forward

3. THE JOURNEY- IS IT ACHIEVABLE???? 2015? 2015 – 100% COMPLIANCE WITH THE LAW AND ENSURING VALUE FOR MONEY

4. THE JOURNEY- IS IT ACHIEVABLE ???? Yes it is achievable as long as every PE aims to achieve Vfm

5. The need to improve efficiency – High Expenditure in Public Procurement 315 PEs Tshs 4.52 trillion 216 PEs Tshs 2.96 trillion 264 PEs Tshs 3.10 trillion VOLUME OF PROCUREMENT CARRIED OUT BY PROCURING ENTITIES SINCE FINANCIAL YEAR 2007/08

6. The need to improve efficiency – Low levels of Compliance 91 PEs 174 PEs 99 PEs 100 PEs 20 PEs TREND OF PROCURING ENTITIES COMPLIANCE WITH PUBLIC PROCUREMENT ACT AND ITS REGULATIONS SINCE FINANCIAL YEAR 2006/07

7. Efforts to increase efficiency • Many efforts are being undertaken – only few shall be highlighted in this presentation

8. AREAS OF FOCUS OVERCOMING AREAS OF NON-COMPLIANCE

9. BOARD OF DIRECTORS Old Structure 51 staff CHIEF EXECUTIVE INTERNAL AUDIT UNIT LEGAL UNIT PROCUREMENT MANAGEMENT UNIT DIVISION OF CAPACITY BUILDING AND ADVISORY SERVICES DIVISION OF FINANCE AND ADMINISTRATION DIVISION OF MONITORING AND COMPLIANCE DIVISION OF INFORMATION TECHNOLOGY Finance and Accounts Section Guidelines Development and Dissemination Section Systems and Network Administration Section Investigations and Procurement Audits Section Administration and Human Resources Section Research and Documentation Section Contract and Performance Audits Section Data Base Administration Section Training and Advisory Services Section Expanding PPRA Outreach

10. BOARD OF DIRECTORS CHIEF EXECUTIVE OFFICER INTERNAL AUDIT UNIT DIVISION OF LEGAL AND PUBLIC AFFAIRS PROCUREMENT MANAGEMENT UNIT Legal and Secretariat Affairs Section Public Relations Section DIVISION OF CORPORATE SERVICES DIVISION OF CAPACITY BUILDING AND ADVISORY SERVICES DIVISION OF MONITORING AND COMPLIANCE DIVISION OF INFORMATION AND COMMUNICATION TECHNOLOGY Guidelines Development and Dissemination Section Systems Support and Administration Section Monitoring and Evaluation Section Planning and Coordination Section Research and Documentation Section Contract Performance Section Systems Development and Maintenance Section Finance and Accounting Section Training and Advisory Services Section NORTHEN ZONE Administration and Human Resources Section Investigation and Anti-Corruption Section LAKE ZONE COAST ZONE Zonal Services Section CENTRAL AND SOUTHERN ZONE New Structure- Total staff 142 Expanding PPRA Outreach

11. PPRA TO REACH LGAs – opening of zonal offices Mwanza Arusha D’Salaam Iringa

12. SYSTEM OF PROCUREMENT OF COMMON USE ITEMS AND SERVICES – REDUCED PROCUREMENT TRANSACTION COSTS -Aggregates all CUIS from PEs GPSA -Decides on the appropriates Procurement Method -Submits a list of CUIS to GPSA -Prepares and Maintains CUIS and Suppliers Data Base -Compiles a list of CUIS -Submits a list of Framework Agreements -Maintains Data on placed Call Off orders as received from PEs -List of CUIS approved PROCURING ENTITY PPRA Enters into Framework Agreement with winners Invites Tenders -Submits copies of Call Off Orders to PPRA and GPSA -Places and pays for Call Off Order -Supplies and paid for the call off order SUPPLIER/SERVICE PROVIDER 12

13. Efficiency in sharing procurement information to the public

14. Efficiency in sharing procurement information to the public

15. Efficiency in sharing procurement information: opportunities and awards

16. Efficiency in sharing procurement information: submission of procurement information by PEs to PPRA

17. Efficiency in sharing procurement information: AMONGST PROCUREMENT PROFESSIONALS

18. Efficiency in procurement transactions – e-procurement – Tanzania has done a feasibility study and is currently working on issues relating to system selection, hosting, infrastructure, application, operation and maintenance, as well security

19. Amendments to the Act –Notable Amendments to Complaints Review Mechanism

20. PPAA-if not satisfied with the decision of PPRA or after the expiry of a 30 days period PPRA-if not satisfied with the decision or after the expiry of a 30 days period Suspend procurement proceedings After signing of contract TOTAL 105 DAYS Copy of decision submitted to PPRA and the RC Before the signing of contract Conduct investigations HEAD OF PE Decision within 30 days Bidders complaint Presented within 28 days from the day of the event leading to complaint Copy of complaints submitted to PPRA and the RC System for Procurement Complaints Review

21. PPAA-if not satisfied with the decision of PPRA or after the expiry of a 30 days period Suspend procurement proceedings After signing of contract TOTAL 59 DAYS Copy of decision submitted to PPRA and the RC Before the signing of contract Conduct investigations HEAD OF PE Decision within 14 days Bidders complaint Presented within 28 days from the day of the event leading to complaint Copy of complaints submitted to PPRA and the RC System for Procurement Complaints Review

22. Amendments to the Act –Notable Amendments: Integration of procurement plan with budgeting process

23. Challenges Failure by Some PEs to utilize the opportunity for reducing procurement transaction cost e.g use framework contracts for procurement of CUIS and advertize in the TPJ and Authority website Corrupt and fraudulent practices in procurement process despite the effort being spent to prevent and combat them

24. Challenges Commercial operators such as suppliers and service providers, as well as CSOs have not effectively used the opportunities availed by the Authority to build their capacity Commercial operators such as suppliers and service providers, as well as CSOs have not effectively used the opportunities availed by the Authority to build their capacity

25. Way Forward • PEs to be encouraged to do procurement capability review assessment and allocate resources for capacity building of their staff • Action to be taken against PEs not demonstrating commitment to reduction of procurement transaction cost • Commercial operators should be sensitized to register as appropriate and take part in improving their capacity to withstand the competitive procurement market in the country as well as in the region

26. Way Forward • The CSOs should be empowered to actively participate in advocacy of good governance in public procurement and monitoring of process and outcome in delivery of services • The fight against fraud and corruption in public procurement should be intensified by more collaborative initiatives among key stakeholders

27. WE can all overcome

28. Asanteni kwa kunisikiliza Mwisho