2002年-世界发展银行全球_Ethiopia___Country_Procurement_Assessment_Report_Volume_1_Findings_and_Recommendations_34页_191kb

Ethiopia Country Procedure Assessment Report Summary

Core Content

This report is a Country Procurement Assessment Report (CPAR) conducted by the Government of Ethiopia and the World Bank, aimed at evaluating the public procurement system and recommending reforms to improve its economy, efficiency, and transparency. The assessment was carried out in coordination with the Ministry of Finance and Economic Development (MOFED) and international donors. It serves as an integral part of the World Bank's Country Assistance Strategy (CAS) for Ethiopia and is aligned with other initiatives such as the Public Expenditures Review (PER) and Country Financial Accountability Assessment (CFAA).

Main Findings

1. Procurement System Overview

• Ethiopia's public procurement system is being assessed against internationally accepted principles of transparency, economy, and efficiency.
• The system is currently inadequate, with only partial satisfaction of the key criteria:
  • Legal and regulatory framework: Not based on international models like UNCITRAL.
  • Procurement procedures: Lacking modernization and transparency.
  • Procurement staff: Limited in experience and professional recognition.
  • Control mechanisms: Weak in monitoring and addressing complaints.
  • Anti-corruption measures: Not fully implemented with effective sanctions.

2. Legal and Regulatory Framework

• Procurement is governed by:
  • Financial Proclamation No. 57/1966 (Procurement Law)
  • Financial Regulations No. 17/1997 (Council of Ministers)
  • MOF Directives (June 1997) (limited to goods, not works or consulting services)
• A new UNCITRAL-conforming law is being drafted, and a Preliminary Public Procurement Regulation is in the final stages.
• The new regulations are expected to cover all public bodies and parastatals, including the decentralization of procurement authority.

3. Institutional Framework and Procurement Proficiency

• There is no central procurement oversight body with clear functions such as policy-making, standard document preparation, and monitoring.
• The Ministry of Capacity Building (MCB) is expected to take over capacity-building responsibilities, including procurement.
• Federal agencies have not adequately trained regional and woreda-level staff, which is a critical gap.
• Woredas have minimal procurement experience, leading to inefficiencies and delays.

4. Procurement Practices and Procedures

• The Draft Procurement Manual (March 1999) is useful but lacks coverage of key elements like:
  • Prequalification and post-qualification processes
  • Bid security, liquidated damages, and arbitration
• Standard bid documents for civil works are not comprehensive and need improvement.
• Consulting services use outdated procedures based on goods procurement.
• Modern procurement methods such as concessions, BOT, BOOT, and private sector participation are not yet covered by regulations.
• E-procurement is not yet regulated, and there is a need for updated procedures.

5. Private Sector and Trade Practices

• The private sector is dominated by government-related companies, reducing competition and encouraging inefficiency and corruption.
• Import procedures for commodities like fertilizers are restrictive and inefficient, using a limited number of national importers.
• The consulting industry lacks influence on government decisions and faces regulatory contradictions.
• The construction industry is not involved in the drafting of procurement documents and has limited input on specific procurement conditions.

6. Decentralization and Deconcentration

• Ethiopia is undergoing a radical decentralization process, transferring powers to regional and local governments.
• Woreda-level procurement is still underdeveloped, and deconcentration (decentralized implementation) is not sufficient to support local procurement needs.
• Community-level projects lack suitable documentation and procedures, such as simplified bidding documents and contracts.

7. Challenges and Risks

• Resistance to change is expected in various areas, including:
  • Government reluctance to adopt international standards
  • Opposition from party-owned companies
  • Resistance from major ministries fearing loss of power
  • Inadequate initiatives for standard document preparation
  • Capacity-building may be hindered due to lack of qualified staff and funding
  • Unequal distribution of funds could lead to frustration and slow progress
  • Weak monitoring of anti-corruption efforts may reduce efficiency and increase costs

Key Recommendations

1. Establish a Coordinating Unit and Task Force

• Include MOFED, MCB, MOI, and ULGA, along with private sector representatives.
• Strengthen the technical foundation with independent procurement experts.

2. Develop Comprehensive Procurement Legislation

• Base it on the current framework but align with international standards.
• Formalize and disseminate the Procurement Manual and standard documents.
• Include a new Manual of Procedures and model documents for goods, works, and consulting services.

3. Launch a Sustained Capacity Building Program

• Focus on training and staffing for regional and woreda-level governments.
• Use the CBDSD project to support initial efforts, but require sustained support from the World Bank and donors.

4. Institutionalize the Ethics Code

• Ensure all government and private sector entities are aware of and follow the Code of Ethics.
• Promote transparency and anti-corruption measures through seminars and forums.

5. Improve Procurement Procedures

• Prepare simplified procurement manuals for use at woreda level.
• Include clear bid evaluation criteria and dispute resolution clauses in standard documents.
• Regulate modern procurement methods such as E-procurement and private sector participation.

6. Coordinate with Donors

• Ensure that donor resources are tied to the actual completion of reform steps.
• Support the new Financial Proclamation and its formal approval by Parliament.

Conclusion

The CPAR highlights the need for systematic reform of Ethiopia's procurement system to align it with international standards and support the country's decentralization and poverty reduction goals. The report outlines a clear action plan and emphasizes the importance of capacity building, institutional oversight, and donor coordination in achieving these reforms.