PUBLIC FINANCIAL MANAGEMENT

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Nov 9, 2013 (3 years and 9 months ago)

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BANGLADESH EXPERIENCE


PUBLIC FINANCIAL MANAGEMENT
AND

PR
OCUREMENT



A presentation for

Concurrent Session on

Public Financial Management and Procurement



Contents

Financial Management:


Public Financial Management Reforms


Lessons Learnt


Harmonization, Alignment and Simplification
-

broad picture


Future Challenges

Procurement


Procurement Reform


Lessons Learned & Contributions to
Harmonization


Use of Country Systems: Procurement in relation
to PFM


Future Challenges


PFM Reforms


Joint Diagnostic studies :


Committee on Reforms in Budgeting and
Expenditure Control ( CORBEC)


DFID and GOB;



Way Forward for FM Reform in Bangladesh
-

DFID
and GoB



Country Financial Accountability Assessment


(CFAA)
-

World Bank, UNDP and GoB



PFM indicators as a part of on
-
going Joint Public
Expenditure,Procurement and Financial
Management Review
-
DFID, WB & GOB









PFM Reforms (continued)


Major PFM Reforms: Policy & Operational


Reforms in Budgeting and Expenditure Control
(RIBEC), Financial Management Academy ( FIMA),
Reforms in Govt Audit ( RIGA)
-

DFID


Strengthening the Office of Comptroller and
Auditor General (STAG)


UNDP


ISMOF & EEFM
-

ADB



Strengthening GOB’s FM Capacity and Building
Institutional Capacity of the Office of the C & AG
-

World Bank


Development Support Credit I, II and III
-

World
Bank


ROSC Fiscal Transparency


IMF and


Financial Management Reform Program

FMRP
(DFID & Dutch)




PFM
-
Lessons from Harmonization


Lack of common understanding and proper
coordination among various Ministries and
Govt Departments


Differing Development Assistance Strategy by
Donors


PFM priorities often not synchronized and lost





Harmonization
-

Broad Picture


PEDP II:


10 donors under one implementation Framework
-

ADB leads


Common PFM system (Reporting and Auditing)


Multi
-

lateral donors like WB and ADB
harmonized individual requirements ( Common
Withdrawal Application, audit reporting period)


Agreed FM Improvement Plan



Harmonization
-

Broad Picture (continued)



HNPSP:


Pool and Non Pool Donors under common PFM
system
-

WB leads


NO PIUs ; No Special Account


Govt spent first including donors share


Agreed Audit TOR with C & AG


Common Audit and Reporting


Strengthen FM Framework including
improvement plan for the Sector


Alignment of donor assistance on PFM along with
GoB priority plans, PRSP, ROSC, CAS, PER


PFM Task Force


a common platform by donors and
Govt led by MOF


An Aid Governance Group (ERD) consisting of Donor
and Govt


Country Harmonization Action Plan






Challenges :


DPs and GOB work under an uniform
development assistance strategy for PFM


Progress Monitoring mechanism and timely
adjustments of action plan


More Flexibility and Simplification of DPs FM
policy and procedures to achieve better
country outcome


More awareness on the value addition on
Harmonization and Alignment Approaches


More delegation of responsibility and
authority at country level




Procurement Reform: background

Low Level of
public
procurement


performance
constrained
national
development

The Country
Procurement
Assessment Report
(CPAR) identified
Key deficiencies in
the public
procurement system


CPAR Findings & Recommendations (2001):








Opaque public procurement practices are the single
most serious issue affecting whole public sector’s
activities



Set up a Public Procurement Policy Unit


Issue Public Procurement Rules


Streamline Proc. Process & Financial Delegation


Develop Procurement Management Capacity


Publish Contract Awards


Introduce Appeal Procedures


Proc. Reform & Achievements

DSC II & DSC III



Procurement Law & Performance triggers


IDA Credit

:

August 2002 / ~ $5 million/ 3 years



Bangladesh now has a transparent public procurement regulations,
accepted by most DPs




Established permanent procurement policy unit



Mandated harmonized procurement regulations & STDs





Publishing contract awards



Mandated annual procurement review (audit)





Mandated independent appeal procedures for protests




Streamlined financial powers & proc. approval process



Developed national trainers &
Institutionalizing capacity



Lessons from Harmonization



Joint effort of the Government and DPs


Participatory Approach, Flexibility/Adaptability of

new reform Procedures


Country Ownership



Agreed CPAR (DPs & GOB)



GOB’s political commitment for proc. Reform


Implementation of all CPAR recommendations


Implementation of reform with credit (NOT grant)


Permanent policy unit with Government resources


Critical mass of national trainers (40 p)


Institutionalize proc. capacity with local institute


MIS for monitoring reform outcomes/performance

Contributions to Harmonization


Aid Governance Group
-

( ERD) Harmonizing Govt and
Donors procurement requirement along the Procurement
Regulations


Primary Education Development Program II



Country’s own harmonized procurement regulations for
all local procurement (10 DPs & GOB agreed)



Local
-

85% of procurement in PEDP II.



All local procurement from common pool (DPs)



Annual procurement review (audit) as per GOB Proc.
Regulations (by independent consultant)


HNPSP:


Harmonized Procurement Procedures & agreed plan for all
local procurement


Contributions to Harmonization


Seven IDA funded projects including other DPS
using Government Regulations for all local
procurement



Piloting use of PFM framework for procurement as
part of PFM baseline and performance indicators



Integrated analytical review of procurement with
PFM and Public Expenditure group
-

World Bank,
DFID and ADB



Centralized MIS in CPTU/IMED (using above
indicators) for effective monitoring of procurement
outcomes and performance
(CPTU Website:
cptu.gov.bd
)



Future Challenges


Compliance Monitoring of Procurement
Reform


Roll out the capacity building across the
country institutions including private sector


Piloting E
-
procurement


Mindset and Behavioral change by all parties
and


Sustainability of already established CPTU
and corresponding strengthening of IMED.