Publish Date : 05-Aug-2016
Every year, governments across the globe make sure that taxpayers' resources are converted into tangible products that deliver critical services to citizens, such as healthcare and access to electricity. In developing and emerging economies with limited resources, procurement solutions that ensure better value for money can mean the difference between patients with drugs, and households and entrepreneurs with energy and those without.
For the past 18 months, the World Banks Governance Global Practice has been working with the U.S. Trade and Development Agency (USTDA) to help developing and emerging nations implement sound procurement practices and policies. World Bank Senior Director for the Governance Global Practice, Deborah Wetzel, and USTDA Director, Leocadia I. Zak, signed a Memorandum of Understanding (MoU) on Tuesday, formalizing the partnership and securing a platform for stronger collaboration between the two organizations.
"When USTDA launched its Global Procurement Initiative in 2013, the World Bank was a key official collaborator," USTDA Director Lee Zak said. "I am so pleased that our organizations are strengthening our relationship, which will go a long way toward ensuring that emerging economies procurement practices bring the greatest value for public dollars."
As both organizations collaborated on procurement efforts, they have started to see positive results in developing countries. The World Banks Solutions and Innovations in Procurement (SIP) and USTDAs Global Procurement Initiative (GPI) teams are working together to help Ethiopian Electric Power, a large executor of public funds, strengthen its procurement systems. This collaboration is expected to improve the way the Government of Ethiopia procures complex energy projects. It also has the potential to transform numerous other sectors that can be bolstered by access to reliable, affordable electricity.
"At the World Bank, we want to ensure that good public procurement helps strengthen governance in developing countries. A modern and robust procurement system can help countries get the best value for money, improve public service delivery, stimulate private sector growth and increase citizen trust in their countries capacities to better manage public resources," said Debbie Wetzel, Senior Director, Governance Global Practice at the World Bank. "This flourishing partnership with USTDA is already having an impact. I am delighted that today we are committing to further intensify our cooperation to support our client countries."
Another benefit of the partnership is its ability to enhance the impact of the World Banks new Procurement Framework, launched officially last month. For example, USTDA has been helping the Government of Botswana achieve value in its procurement processes, providing two procurement advisors to support the Ministry of Minerals, Energy and Water Resources (MMEWR). These efforts complement World Bank assistance in streamlining institutional structures in public procurement and in the professionalization of Botswanas procurement workforce. As procuring entities like MMEWR strengthen their institution, systems and procedures, they may be able to more quickly build their own capacity to manage and implement investment projects in line with one of the key objectives of the Banks procurement framework.
Another example of partnership is in Vietnam: Inspired by Vietnams revised procurement legislation which the World Bank was instrumental in supporting USTDA and the Bank designed a procurement program with Vietnams Public Procurement Agency (PPA). USTDA and PPA are currently working together to build a database to track and monitor the performance of contractors who provide billions of dollars in goods and services to the Government of Vietnam each year. The database advances the PPAs broader e-government goals, which are also supported by the World Bank.
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