2012年-世界发展银行全球_Solomon_Islands___Operational_Procurement_Review_57页_819kb

Solomon Islands Operational Procurement Review (OPR) Summary

Core Content

This report presents the findings and recommendations of the Solomon Islands Operational Procurement Review (OPR), conducted by the World Bank in June 2012. The review aimed to evaluate the existing national procurement system in terms of its acceptability for use in World Bank-financed projects and to provide a benchmarking analysis across four thematic areas or pillars: legislative framework, institutional framework, procurement operations and market, and system integrity.

Main Objectives and Scope

• Objective: To assess the practicality, efficiency, transparency, and integrity of the Solomon Islands' public procurement system.
• Scope: The review focused on the following:
  • Assessing the acceptability of the national competitive bidding (NCB) procedures for World Bank projects.
  • Evaluating the level of fiduciary risk in the procurement system.
  • Helping define the appropriate intensity of World Bank supervision, including thresholds for different procurement methods.

Key Findings

Legislative Framework (Pillar I)

• The Solomon Islands does not have a separate legal framework for public procurement.
• The current legal instrument is Chapter 7 of the Financial Instructions (FIs), which addresses supply chain management.
• The FIs outline monetary thresholds and approval authorities, but lack detailed operational procedures for effective implementation.
• The procurement system is not fully compliant with international standards, achieving only 48.5% of the baseline requirements.

Institutional Framework (Pillar II)

• The Ministry of Finance and Treasury (MoF) is responsible for issuing FIs and has a procurement unit.
• There is an autonomous Central Tenders Board (CTB), but no single body oversees all aspects of public procurement, including legal policy, documentation, capacity building, monitoring, and technology.
• The institutional framework is weak, and there is a lack of comprehensive capacity-building programs for procurement officials and suppliers.

Procurement Operations and Market (Pillar III)

• There is limited information available for monitoring procurement performance.
• No compliance and performance indicators (CPIs) have been adopted.
• Formal training and information programs for procurement officials and suppliers are scarce.
• The capacity of central and provincial governments to conduct procurement is very weak.
• Private sector confidence in the procurement process is low due to past issues such as non-payment and irregularities.

System Integrity (Pillar IV)

• The FIs provide internal controls in the form of monetary thresholds but lack clear guidance on implementation.
• There is no specific agency responsible for transaction reviews of procurement processes.
• No formal appeals mechanism exists, with appeals typically directed to the procurement entity.
• Procurement information is not always published as required.
• The FIs do not provide specific definitions for fraud and corruption, only stating that non-compliance is a cause for misconduct.

Acceptability of NCB Procedures

• The current public procurement system in the Solomon Islands has high public procurement risks.
• The NCB procedures are currently acceptable for use in World Bank projects, but only under certain conditions.

Recommendations

The OPR team made the following nine recommendations, in order of priority:

1. Develop and promulgate revised regulations and supporting procurement documentation.
2. Create a Central Procurement Office (CPO) as a division of the MoF.
3. Establish a system to monitor the procurement performance of all SIG entities.
4. Develop a comprehensive website where it would be mandatory to publish procurement requirements.
5. Examine the results of current efforts to rationalize procurement of bulk items and assess the efficiency of full decentralization.
6. Set up an appeals mechanism.
7. Devise an anti-corruption strategy for SIG procurement.
8. Develop and implement a procurement capacity-building plan.
9. Develop and implement a certification system for procurement practitioners.

The OPR team estimated that the cost of implementing these recommendations would be approximately US$500,000 over a three to five-year period. They recommended that funding options be analyzed jointly with the MoF and other relevant development partners.

Key Information

• Currency: Solomon Islands Dollar (SBD), with $1.00 = SBD7.20.
• Fiscal Year: January 1 – December 31 for the national government, and April 1 – March 31 for provincial governments and Honiara Council.
• Government Structure: A constitutional monarchy and parliamentary democracy with a unicameral Parliament of 50 members.
• Procurement System: Governed by the Financial Instructions (FIs), with Chapter 7 addressing supply chain management.
• Donor Contributions (FY2011): Approximately 13% of the total overseas grants, with the main contributors being ROC (Taiwan, China), Australia, New Zealand, and the Asian Development Bank (ADB).
• Economic Context: The Solomon Islands is a small, remote economy with a population of about 553,000, mostly living in rural areas. The economy was severely impacted by the 2009 global economic crisis, but has since recovered with GDP growth of 6.8% in 2010 and 9.0% in 2011.
• World Bank Portfolio: The WB has five active investment loans and two active technical assistance programs in the Solomon Islands, focusing on health, rural development, telecommunications, and energy sectors.
• Benchmarking Results: The SIG procurement system scored approximately 30.8% against the international baseline standard, indicating significant room for improvement.

Conclusion

The Solomon Islands public procurement system is in need of substantial reform to meet international standards and reduce fiduciary risks. The OPR highlights the importance of strengthening legal and institutional frameworks, improving transparency and accountability, and enhancing capacity-building efforts to ensure efficient and effective procurement practices.