High Level Seminar on e-Procurement, Efficiency and Integrity Challenges and Good Practices

Rome – June 2010

Egypt – General Authority for Government Services (GAGS) Ministry of State for Administrative Development Contents

• What is e-Government about? • Procurement and Public Financial Management • e- Government Goals • Egypt e-Procurement Experience • What is New on the Ground! • Implementation – Phase I & II • e-Procurement Advantages & Challenges

What is e-Government about?

“It is about automation or computerization of existing paper-based procedures or re-engineered one, with the aim of enhancing access to and delivery of government services for the benefit of citizens. It also aims to strengthen government’s drive toward effective governance and increased transparency to better manage a country’s social and economic resources for development”

Procurement and Public Financial Management • Procurement expenditures represents a significant component of public expenditure (10-15% of GDP ) and significantly higher in developing countries

• The basic objectives are to obtain goods and services needed to deliver government programs at the appropriate quantity, quality and price (value for money)

• Procurement is therefore a financial management issue not just adhering to legal requirements or obtaining goods and services that meet technical requirements.

• Inappropriate procurement will reduce both strategic resource allocation and operational efficiency

e-Government Goals

• Increase productivity and economic growth

• Contribute to effective delivery of goods and services to citizens

• Promote transparency and accountability

• Streamline government operations, reduce its operation cost, and increase staff productivity

Egypt e-Procurement Experience

• In 2007, Egypt launched its e-Tender Portal (Phase I) http://etenders.gov.eg • It is a web-based portal solution that allow electronic communication between different stakeholders: – Governmental Entities – Suppliers/Bidders – Procurement personnel and evaluation committee members within government organizations – Decision makers and senior management within government organizations

What is New on the Ground!

• Prime Minister’s Decree # 33 issued on Jan. 1st 2010 demanding all Governmental bodies governed by the Public Procurement Law # 89 to publish their Procurement Opportunities and Solicitation documents on the e-Tender, this in addition to advertising in the official Newspaper. • Registered Bidders or Interested Citizens Can Access and Download Posted Solicitations Free of Charge • Lunched A Hands-on Field Support Campaign to Ministries and Governorates “Greater Cairo – 5 Governorates” to physically get them registered and train them on how to utilize the e-Tender Portal

Implementation – Phase I

• The solution is composed of 3 sub-systems: Sub System (1) E-Tendering . Creating and up-loading solicitation documents (RFPs) . Publishing RFPs on the portal & sending notification messages to registered suppliers . Online question and answer forum with automatic distribution to all registered suppliers Implementation Phase II

Sub - System (2) Central Collective (pooled) Procurement 1. Each government organization to send its procurement needs of commonly used items to its Line Ministry or Governorate (Pilot Project - manual) 2. Central office within each Ministry or Governorate aggregates the requisitions and issues one pooled transaction (Pilot Project - manual) Sub - System(3) e-Bidding and e-Evaluation 1. Electronic tender box for online submissions of offers 2. Online publishing of evaluation results and decisions 3. Online contract award announcement

Implementation approach!

• e-Procurement can be done in phases and in accordance with the country reform strategy

• Re-invest in available infrastructure and assets to reduce startup capital

• Define the needed functions and targeted objectives (start with small and simple ones)

• Revenue or funding generating model must be in place from the beginning to sustain the project

e-Procurement Advantages & Challenges • e-procurement applications is in Arabic language which represent an advantage to the government entities and business community • Application is up and running

• Readiness and computer Literacy among business community as well as government resources

• Lack of skilled resources to operate modern procurement system in both private and public sectors • Maintains “Sustain” the System