The government of Bangladesh could save millions in goods, public works and services with a secure electronic procurement system, the World Bank country director said Sunday at a meeting that unveiled draft guidelines for e-procurement.
Online bids for the $3 billion the government spends annually on supplies and contracts may soon be largely free from bid-rigging, delays and paper-based errors, Ellen Goldstein told a workshop in the city: “Through the web interface, procurement information becomes accessible, and competition and transparency are enhanced, making collusive bidding difficult.”
The idea that e-procurement could save all government levels money by boosting efficiency and the transparency of public procurement is not new, but the estimate of the savings and timetable hints are new.
Goldstein said e-procurement could make public contracting more accessible, secure and efficient, enhancing programme implementation. She also said procurement reform is key to strengthening governance, public-sector management and accountability in Bangladesh.
“It is well-documented that weaknesses in public procurement have a cumulative negative effect on investment and economic growth,” said Goldstein. “And poor public procurement skews investment toward areas where rent-seeking is prevalent, rather than toward the areas that need it most for poverty reduction and development.”
The country director praised Bangladesh’s long-term progress in public-procurement laws, which she deemed “world class” — but she deemed “unfortunate” amendments made under the current government which no longer require bidders to have prior sales to the state and no longer allow a “lottery” choice for contracts Tk 2 crore.
She noted that e-procurement cut costs and delays in many countries: “In Romania, an e-procurement system paid for itself through cost savings within six months [ … ], while Korea’s system led to an average 15 percent cost reduction, worth $2.5 billion.”
The Washington-based anti-poverty lender will support any government committed to e-procurement at the district, upazila and union parishad (local) levels with financing from the Public Procurement Reform Project and the Local Government Support Project, she said.
Goldstein said software development and internet connectivity for key agencies is progressing, and that Bangladesh may begin pilot-testing the system in four months. “Of course, piloting cannot begin until the government reaches closure” on e-procurement guidelines, she added.
The nation’s planning minister called the reforms a top priority, both in terms of policy and technology. He said the government expects to finalise guidelines by the year’s end and to introduce them in phases.
“Our plan and preparation to introduce e-tendering by this year-end bears testimony to that commitment,” said AK Khandker. “The sooner the government purchases go online, it will be better for us.”
Yawn/cut: Goldstein spoke ‘s observations came at the inauguration ceremony of the workshop on Procurement: A way forward, to e-GP (Finalisation of e-GP Guidelines) at the National Economic Council conference room in the planning ministry.
The Central Procurement Technical Unit of the Implementation Monitoring and Evaluation Division organised the event, chaired by Md Abdul Malek.
The planning minister and State Minister for Science and Information & Technology, Yeafesh Osman, spoke as chief guest and special guest, respectively.
Central Procurement Technical Unit director general Amulya Kumar Debnath also spoke.
International consultant Ramesh Kumar Sakaya presentated the draft guidelines, formulated by the World Bank-supported Public Procurement Reform Project-II.
