CAPACITY BUILDING IN GOVERNMENT PROCUREMENT THE EXPERIENCE OF

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

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

DEFINITION OF CAPACITY (Contd. ) This definition has three important aspects: 1) it indicates that capacity is not a passive state but is part of a continuing process; 2) it ensures that human resources and the way in which they are utilized are central to capacity development; and 3) it requires that the overall context within which organizations undertake their functions will also be a key consideration in strategies for capacity development.

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.

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

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

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

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

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

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

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

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

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

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

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

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

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

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.

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