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1. Project Description:
Procurement is at the heart of the effective and efficient delivery of public services. It also involves the management
of large amounts of money and is the largest single cause for allegations of corruption and government inefficiency.
Weak procurement policies and practices constrain development and waste scarce public funds. Through the Paris
Declaration (declaration of the Second High Level Forum on Aide Effectiveness, or HLF 2) ADB member countries
committed to develop reliable procurement systems (indicator 2b). This was affirmed in September 2008 at HLF 3.
At the same time, procurement has been identified in GACAP II as a governance thematic priority which must be
assessed at country and sector level to inform preparation of the CPS. Procurement risks identified in ADB priority
sectors should inform design of ADB programs and projects in those sectors. A review of current ROBPs and
RCSPs does not reveal direct links to public procurement, Abut a review of CSPs does. The Philippines CSP, for
example, identifies (i) weak institutional capacity to deliver public goods and services and prone to corruption; (ii)
fiscal imbalance related to public expenditure management (of which procurement is a key component); and (iii)
strengthening the civil service through improved public procurement.
The RETA seeks to further ADB’s commitments under HLF2 (affirmed by HLF3) and GACAP II, and to address the
development constraints posed by weak procurement as identified in CSPs. By networking procurement policy
officials in a minimum of 20 DMCs, it will facilitate sharing of experiences and develop common agendas to move
the public procurement systems of member countries toward international best practice. The objective is for one
third of ADB DMCs to improve their procurement systems by a minimum of one point on four-point OECD/DAC
scale by 2014 (ie, from A to B, or B to C, etc.). Over the 3.5 year implementation period the TA will fund (i) 4
regional conferences; (ii) 8 subregional meetings; (iii) the development of a functioning web site providing resource
materials and forum facilities; and (iv) the production of a bi-monthly newsletter. Currently there is no forum that
brings together DMC procurement policy officials to share experiences, identify common issues and seek
coordinated solutions. Establishment of one will help raise the level of participating countries' procurement systems
toward international best practice. Moreover, as public procurement is closely linked to trade, a coordinated
procurement policy environment will contribute to regional economic integration and growth.
2. Consulting inputs:
The TA will recruit two individual national consultants in HQ on part-time basis for the duration of the TA to assist
with organizing conferences and meetings, to prepare the newsletter and to manage the web site content. The
consultants will be engaged by ADB in accordance with the Guidelines on the Use of Consultants (2007, as
amended from time to time).
5. Cost Estimates:
The total cost of the TA is estimated at $1,500,000 equivalent. It is proposed that the ADB provide $1,400,000
equivalent on a grant basis from TASF-IV and other trust fund. Participating Governments and donor partners will
finance the remaining $100,000 equivalent through in-kind through a cooperation agreement (not included in the TA
financing plan) to support and provision of resources, and funding of conferences and meetings.
• Conduct 4 regional conferences with minimum 20 participating DMCs by 2012 • ADB $1,400,000 to fund
• Conduct 8 subregional meetings, each with minimum 8 participating DMCs plus other conferences and meetings,
by 2012. develop web site, and produce
newsletter, including consulting
• Establish functioning web site by 2010 and continue to develop over course of TA
services to assist with these
• Initiate bi-monthly newsletter by 2010 and continue to develop over course of TA activities
• Governments: in-kind support
when hosting conferences and
meetings
• Cofinancing: none identified as
of writing of concept paper.
Based on past work, in-kind
support expected through
cooperation agreement from
World Bank, JBIC, DFID, UNDP,
and AusAID to participate with
conferences, meetings,
newsletter, and web site
• Others: initial discussions with
UNDP indicates willingness to
host web site on its Procurement
Capacity Development web site