IPPC6

2. The Economics of Public Procurement on
Infrastructure Projects Delivery in
Developing countries: A case study of
Central Bank of Nigeria
By
Shuaib, M.R.
Quantity Surveying Programme, School of Environmental
Technology, Abubakar Tafawa Balewa University Bauchi,
Nigeria.

3.  Central Bank of Nigeria (CBN) can be seen
as one of the biggest construction clients in
Nigeria.
 Total Contract value of CBN capital projects
between 2005-2014 is over 1 billion USD
 Procurement strategy

4.  Design Precedes Construction
 Consultants appointed by the client
 Contractor engaged based on consultants
recommendation

5.  Bases on which Bureau of Public
Procurement and National Council on Public
procurement was established
 Served as a legislation guide on how public
funds should be expended

6.  These laws provides room for proper
delivery of projects covering
conceptualization, planning , design and its
implementation
 They also give opportunity(s) for award of
contract with due diligence and procedure.
 All procuring entity (PE) to adhere to the
public procurement Act provision.

7. PP-Act 2007 is set to achieve the following
objectives:
 Economy and Efficiency
 Competition – providing level playing
ground for all strata of bidders
 Achieve Value for Money
 Enhance Transparency

8. The purpose of this paper is to observe and
explore the efficacy of CBN’s traditional
procurement success on capital projects
based on the provision of procurement Act of
2007.

9.  CASE STUDY ‘A’ CBN Branch office project
Katsina, Kastina State, Nigeria.
 CASE STUDY ‘B’ CBN Branch office project
Abakiliki, Ibonyi State, Nigeria.

10.  Could the success or otherwise of these
projects be associated with the choice of the
procurement method used?
 Are there other factors that could be tied to
the achievement or otherwise of the
projects objectives?
 Is there efficiency in the implementation
process of the PPA 2007 laws and guidelines
on these projects?

11.  The method used in this research was
Focused Group Discussions (FGDs) where
data was collected and analysed using
funnel approach starting from the general to
specific.
 The level of confidence was determined as
one from the discussions held amongst the
supply chain participants on CBN projects.

12.  Textbooks, PPA 2007 document, academic
journals articles and reports on
procurement were some of the primary
source of data obtained.

13. Ensued discussions with stakeholders on each
projects covering:
 CBN traditional procurement method
 Compliance to PPA 2007 principles and
guidelines
 Why CBN projects are not completed within
time and budget.

14. CBN BRANCH OFFICE PROJECT ABAKILIKI,
IBONYI STATE.
 To provide quality banking structure and
easy access to banking services
 Awarded in November 2010
 Completion period 104 weeks (November
2012)
 Contract sum - N 7,1billion (33million Euro)

15.  Project status - Ongoing
 Time overruns to date - 92 weeks
 Actual progress to date – 71%
 Projected completion date – May, 2015
 Projected time overruns – 130 weeks
 No major additional work on the project

16. At Pre-contract stage, the following
information were made available prior to
tender action.
 Drawings were substantially completed, but
many issues on services were not detailed.
 Bill of quantity
 There was advertisement, prequalification
exercise, tendering procedure before award.

17. At post-contract stage, the following issues
were identified as major setbacks.
 Delay in all clients supply items
 Inability of the contractor to work according
to programme of work
 Incomplete services drawings even upon
engagement of the PC Items subcontractors
 Lack of requisite knowledge, skills and
experience of the specialist subcontractors

18. CBN BRANCH OFFICE PROJECT KATSINA,
KATSINA STATE, NIGERIA.
 To provide quality banking structure and
easy access to banking services
 Awarded in February 2006
 Completion period 104 weeks ( February
2008)
 Contract sum - N 4.409 billion (20 million
Euro)

19.  Project Status - Completed and handed over
 Time overruns – 12 months
 Approximate Cost overruns – N1.0m (4.5m
Euro)
 Drawings were completed before tender.
 Bill of quantity was also completed
 There was advertisement, prequalification
exercise, tendering procedure before award.

20. At post-contract stage, the following issues
were identified as major setbacks.
 Delay in all clients supply items
 Inability of the contractor to work according
to programme of work

21.  None of the two CBN projects achieved its
set objectives
 The projects were efficiently
conceptualized, properly planned and
adequately designed but implementation
was faulty.
 Late engagement of PC item subcontractors
 Delay in delivery of client’s supply items to
site

23. There was compliance to public procurement
principles in terms of:
 Conceptualization, proper planning and
adequate design of both projects.
 Advertisement, prequalification and
tendering process and award.
 There were level ground for different strata
of contractors who bid for the contracts.

24.  But Implementation was faulty
 Cost and timely completion have not been
achieved hence, value for money.
On the whole, the core objectives of the public
procurement Act 2007 was partially achieved
on both projects.

25. Thank you.