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PFM Performance Measurement Framework And Procurement. Pamela Bigart World Bank. Why is procurement included?.
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PFM Performance MeasurementFramework And Procurement Pamela Bigart World Bank
Why is procurement included? • Public Procurement systems are at the center of the way public money is spent since budgets get translated into services largely through the government’s purchase of goods, works and services
Why Include Procurement? • 30 to 70% of budget expenditures are managed through the procurement system • Key area of interest for countries to increase efficiency of expenditure and improve service delivery • Key area of interest for donors to help manage risk of misuse of funds and to achieve development objectives
Country Global Angola Azerbaijan Bulgaria Dominican Republic Malawi Vietnam % Total Expenditure 12-20% 58% 34% 30% 20% 40% 40% Size of Procurement in Selected Countries
Procurement Elements of PFM Indicators • Dedicated indicator # 19 focuses on unique aspects of procurement system not captured in other indicators • Degree of Competition in system • Dispute Resolution to augment controls • Indicator 19 is being revised – why? • Related indicators #4,10,12,20,21,24, 26 and 28 capture aspects of procurement performance
Procurement Performance Measurement • Joint Venture for Procurement developed detailed procurement benchmarking and measurement tools WHY? • To provide international standards and stop imposing individual donor standards • To facilitate integration of CPAR with the strengthened approach now to be applied for PFM
Procurement Baseline Indicators • Four Pillars • I. Legislative and Regulatory Framework • II. Institutional Framework and Management Capacity • III. Procurement Operations and Market Practices • IV. Integrity of Public Procurement System
Proposed Changes to Indicator 19 • Link indicator 19 more closely to the Procurement Benchmarking tool • Developed a four dimension approach that also closely links to information generated by the CPAR • Ensure that dimensions measured will not overlap with areas covered by other PEFA indicators.