Government Contracting System Modernization Procurement System Egypt Ministry

Government Contracting System Modernization (Procurement System) Egypt - Ministry of Finance Khalid Nofal, Deputy Minister of Finance in charge of Administrative & Technical reform across the ministry and its affiliated bodies Dakar - November 2019

Why Reform? • Part of a comprehensive PFM reform agenda. • To have a system that is more responsive to the changing circumstances to meet government current and future desired goals. • To foster transparency, efficiency and enhance enforcement, and accountability mechanisms. • Set clear mandate for developing an institutional arrangements that ensures consistency in overall policy formulation and implementation • Improve professionalism of the procurement cadre • Establish balanced relationship between the procuring entities and business community Egypt Ministry of Finance – Govt. Procurement Reform

Targeted Objectives of the new law • Transparent, streamlined, standardized and business friendly processes • Insure coverage comprehensiveness • Provide easier access to contract opportunities for business, particularly, SMEs and the subcontractors • Allocate not less than 20% of annual contracting opportunities to SMEs and provide implementation monitoring mechanisms • Encourage innovation and growth • Promote economic, social and environmental sustainability initiatives. • Deal with inappropriate conduct and poor performing procuring entities and contractors • Maintain balance between the cost and quality in contract awards • Set clear criterion for less competitive contracting methods selection • Maintain balance between external openness and promotion of domestic economy • Incorporate effective mechanisms for complaints • Improve anti-corruption and ease of doing business global rankings Egypt Ministry of Finance – Govt. Procurement Reform

• A new law governing “Contracts Conducted by Public Entities” was enacted in 2018 and its Executive Regulations in 2019. • Developed through a participatory exercise of the relevant stakeholders. • Benchmarked by the UNICATRAL Model Law principles and jointly reviewed by IFI’s & others. • Captures the following features The new Law ü Modern structure that is easy to read and ü Procurement function institutionalization understand Addresses all phases of the procurement ü Phased migration to e-procurement and integration ü cycle (planning, acquisition, contract with financial platform (GFMIS) implementation) ü Certification of procurement professionals ü Provides range of modern procurement methods and options (Open tendering is the default method) ü Affirms implementation of sustainable procurement policies and practices ü Promotes and opens opportunities to SMEs ü Establishes a clear mechanism for review of complaints ü Preventive measures against corruption and collusion ü Focus on outcomes in addition to the process ü Progressive approach to contract dispute settlement options ü Ensures quality performance of the contract requirements and facilitates prompt payment of invoices and acceptance of deliverables Egypt Ministry of Finance – Govt. Procurement Reform

Activities Initiated Public Procurement State of Play Status q Govt. Procurement new law - enacted √ 2018 q Govt. Procurement Executive Regulation - enacted √ 2019 q SOEs Procurement Guidelines Streamlining - Prime Minster Decree issued to organize the established steering committee activities √ 2019 q Complaint system modernization development √ 2018 - 2019 q Gradual shifting to a sustainable e-tendering service delivery § Roadmap - developed √ § Request for Information issued √ § Institutional arrangements is being assessed 2019 – 2021 q National Capacity Development Strategy - initiated √ Parallel Activity q TOR to engage an international organization or international consulting firm to assist MOF in implementation √ q e-Learning design and development initiated √ 2019 2018 - 2020 q Standard bidding documents & contracts templates development 2020 q Baseline Study to Assess the Participation of SMEs in Egypt's Public Procurement Market - initiated √ 2019

• Benchmark Cooperation with IFI’s & Development Partners • Complaint System modernization • Executive Regulation Review • SOE’s Procurement Regulation Streamlining • Awareness & Sensitization Support • • Legal Framework Development e-Procurement & e-Learning National Capacity Development SME’s participation in Govt. Procurement Market

Thank You Ministry of Finance – Govt. Procurement Modernization and Streamlining, , April 2019