Public Procurement as a governance tool to enable resource mobilization to finance sustainable development

1. Financing For Development-From Billions to
Trillions
The Role of Public Procurement in Mobilising
Resources for Sustainable Development
ALECK MUNHAMO, PROCUREMENT OFFICER, AFRICAN UNION

2. Billions Trillions Action
This presentation is in partial fulfilment of the
Financing Foe Development course by the World
Bank and addressed to Governments which are
recipients of ODA

3. Billions Trillions Action
Financing for Development is
anchored on two main pillars
RESOURCE MOBILISATION
RESOURCE MANAGEMENT
PROCUREMENT

4. Billions Trillions Action
• Critical aspect is the management aspect as it
enables resource deficient countries to attract
both private and public finance
• Pivotal to this is the process of application of
the funds- Procurement

5. Billions Trillions Action
Resource Management in Public Sector
demands accountability and transparency
Procurement plays an
important fiduciary duty in
public sector management
MDBs review procurement
systems before granting loans
Investors need to have
confidence in the country’s
public expenditure systems, -
is ODA or domestic resources
spent in transparent
manner??

6. Billions Trillions Action
A Conducive environment for
management of resources entails
CorruptionImpedesResourcesMobilisation

7. Billions Trillions Action
Good procurement is critical to ensuring
effectiveness of development projects
A Substantial amount of ODA
is spent on Procurement of
Goods, Services and Works.
According to the AfDB, of the
total contract amount
awarded in 2011, US$296
million or 12.6% were for
procurement of goods,
US$1,861 million or 79.5%
were for works and US$184
million or 7.9% for consulting
services.

8. Billions Trillions Action
Given The significant amounts of ODA spent
through procurement, MDBs put emphasis on
good governance
The African Development
Bank Group with other
Multilateral Development
Banks (MDBs), has been
making continuous efforts to
streamline the policy and
procedures for procurement
in order to improve the
quality, efficiency and
transparency of the
procurement for its projects
across the region (AfDB)
The Above was reiterated by Ngozi Okonjo-Iweala in her presentation on
Improving the Investment Cimate

9. Billions Trillions Action
Countries need to create an
environment conducive for investment
• Make doing business easier
• Consistency and Predictability of policies
• Efficient tax administration systems

10. Billions Trillions Action
Procurement as a conduit for Climate
Financing
• Procurement and Carbon Financing
• Award more points for Company’s that finance
Carbon

11. Billions Trillions Action
Evaluation of Bids in Procurement
should include sustainability,
• Initiatives to mitigate Climate Change
• Contribution to clean air
• Payment for carbon emissions
• Use of renewal clean energy

12. Billions Trillions Action
CONCLUSION
ODA Recipients need to create
conducive environment for
mobilisation of resources.
Need good management-
Procurement as Tool for
Accountability and Transparency
Use Sustainability criteria in
evaluation to assist in management
of Climate Change
New approach to development
management is an all inclusive
approach