Questions/Answers

To ensure transparency, accountability, equal opportunity and fair competition in public procurement a series of reforms were initiated by government of Bangladesh in 2002 followed by recommendations made in the study carried out jointly by GoB, World Bank and Asian Development Bank in 2001. Based on the recommendations the Public Procurement Reform Project (PPRP) supported by WB was taken up that continued up to 2007. Under that project, a unified legal framework was prepared, regulatory institution Central Procurement Technical Unit (CPTU) was established and capacity building started. To digitize public procurement for greater efficiency, openness and participation a provision for electronic procurement system was incorporated in the Public Procurement Act 2006 which was operaionalised in 2008 under the PPRP-II supported by WB.In compliance with the act, electronic government (e-GP) system was introduced in 2011 under the e-GP Guidelines. The Prime Minister opened the e-GP portal on June 2, 2011. The tender through the e-GP portal started on August 23, 2011. The electronic procurement system was embraced by major stakeholders like procuring entities and tenderers. Until December 10, 2017, a total of 132 thousand tenders worth of USD145 million were invited through e-GP system. The implementation of e-GP in public procurement of Bangladesh that spends almost 80 per cent of its Annual Development Program and 24 per cent of National Budget is a revolutionary achievement. It is saving time and cost, ensuring participation of all and fairness in spending public money. The rate of competition has increased to over 10 per tender which was only 4 before it was in place. Starting from the planning up to contract management is now done through e-GP. The procurement performance is also measured through the system.The system comprised with all steps from procurement plan to contract management.

The overall objective of the initiative is to fully digitize public procurement in Bangladesh to remove all physical hassles, ensure efficiency and enhance transparency, accountability and fair competition in the process for achieving value for money. Ensuring efficiency, effectiveness, economy and equity is the essence of public procurement. Implementation of electronic government procurement is an initiative that will contribute significantly in reducing time and cost as well as good governance in spending public money. The measurement of procurement performance is also an objective that will give a comprehensive scenario of compliance with the act and rules to establish best practices in public procurement in Bangladesh.

The initiative of e-GP is linked to Category 2 that involves the process of the inclusion of the stakeholders in public procurement. Also, in the decision-making, all stakeholders are given space and their voices are heard throughout the process of consultation on public procurement and e-GP. The initiative exclusively is dedicated to making institutions inclusive. Citizen can have relevant information from the e-GP website. Through this unique e-procurement system all stakeholders like tenderers, procuring entities, financial institutions, development partners, media and civil society are included in line with their respective roles in ensuring openness and transparency.

The delivery of public services has improved. Transaction time is reduced. Competition increased. About 99 per cent tenders are awarded during the initial validity period. Tenderers need not move to public offices for their tender submission or payments. They can do it online at home. All physical obstructions to submission have been removed. Through public opening online all contenders can see directly their position. There is no scope to hide any information. For increased participation, quality of procurement has also increased. Therefore, economy has increased.

The significant issue of misuse of public funds has been addressed. Due to enhanced quality and reduction in time common people across country, particularly the marginalized segment of population is largely benefited. They are getting more road and communication facilities for business and selling their agricultural produces. It has created a very positive impact on the sectors like health, education, power, rural infrastructures, energy etc.

A large group of tenderers, about 40 thousand registered out of about 150 thousand, and also the procuring entities are directly benefited. The benefits of the e-GP system are ultimately creating a very positive impact on the lives of both rural and urban population. Civil society and media are also benefited. At present, monitoring of public procurement by them is done on a small scale and they are also going to start monitoring implementation on a large-scale soon.

Transformation of manual traditional public procurement system into ICT based digital technology where registration of tenderers, procuring entities, banks and Development Partners are done on a single portal. Also performance of procurement is measured through the online system. In line with the SDGs target (12.7) public procurement is being made sustainable through the implementation of e-GP that comprises planning, contract management and performance measurement.

The e-GP innovation in Bangladesh is exclusively original and rooted to the country system. This is a centralized portal with decentralized operation procedures. The central portal is located at CPTU and all procuring entities can process their tenders in a decentralized way. Legal compliance are ensured on-line and the system is accepted by all the communities as enable reaping sustainable public procurement with good governance.

A state-of-the-art national-level wider capacity data center with all security and safety options, e-GP experts, procurement experts, e-GP/Procurement trainers and training firm, operation and maintenance firm for application of the system, the central portal (www.cptu.gov.bd) are used to implement the initiative.

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The e-GP system has drawn appreciation in South Asia and beyond. Countries like Bhutan, Nepal, Afghanistan, Sri Lanka, Zambia have visited the system and they are willing to implement it in their countries for digitizing public procurement. In the Global Development Learning Network the system is being discussed through video conferencing every month and knowledge is being shared with other countries. Various features of the e-GP system are annually shared with The South Asia Public Procurement Network (SAPPN). The innovation in Bangladesh has encouraged other countries and Bhutan has already started implementing it in their public procurement.The e-GP of Bangladesh is also shared with other countries similar initiatives in different Global conference, conference organized by world Bank/ADB and others

The initiative is sustainable because it has its own earnings. Environment is protected as it does not require to prepare paper. Social and economic aspects are also maintained as small enterprises are also getting the benefits of participation. Earlier they used to face obstructions from the influential groups. Now through online there is no scope for obstruction. Therefore, it has grown as an institution. The e-GP system's earnings have stood at USD 26 billion from the sale of e-documents, registration etc. Government has initiated to institutionalize the e-GP by creating a public owned company which will be running on its own income.

The e-GP system is expected to be sustainable much before the SDG deadline. Full digitization with all required capacity building and compliance will be done by 2022. A plan to corporatize e-GP to establish as a self-sustainable system has been taken up under a new project Digitizing Implementation Monitoring and Public Procurement with World Bank support.

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The e-GP initiative impact was evaluated formally through a set of consultations and interactions with the stakeholders. They are tenderers, procuring entities, financial institutions etc. A consulting firm was engaged to evaluate the evaluation of e-GP implementation during the project PPRPII ended on 2017 .

The outcome of the evaluation has presented a very positive change through the implementation of the e-GP system. Reduction of procurement delays (83 per cent of contracts award within initial bid validity period in 2016 against only 10 per cent in 2007. Web publication of bid invitations enhanced to 100 per cent in 2016 from 70 per cent in 2016. Insignificant number of complaints in e-GP in 2016--less than 1 per cent against substantial number of complaints in traditional tendering during 2010

A mixed set of indicators were used to evaluate the impact that include among others average number of tenderers purchasing tenders, average number of tenderers submitting tenders, average number of responsive tenders, average number of days between final approval and Notification of Awards. percentage of contracts within scheduled time etc.

The e-GP system is implemented by the government of Bangladesh through the nodal office for public procurement ,CPTU. A wider consultation and engagement of of government procuring agencies, procuring entities, private sectors( Contractors, suppliers, consultants), business associations, banks/financial institutions, civil society and media were ensured in the process of e-GP introduction in Bangladesh. Collaboration with development partners and inclusion of all relevant stakeholders have been ensured in the conduct of e-GP. Starting from the preparation of e-GP guidelines up to its implementation the role of policymakers, procuring entities, development partners, private sector, civil society and media were thoroughly discussed and tapped. The private business community has their role as implementer of the government projects. Civil society has oversight role and media plays the role of procurement watch-dog. Development partners have the role of suggesting harmonization of the system with global practices. Sharing/consultation are being continued during changing or introducing any provision/policy that effect procuring system in Bangladesh time to time.

It has opened the door for the private sector to do business with the government and computer literacy has also increased in the country. The initiative has improved efficiency, enhanced transparency, increased competition, minimized collusion, increased professionalization and capacity building. The e-GP system can be further simplified and more innovations can be added to make it more user-friendly. Dialogues and consultations are planned under new project to do all such activities to make the e-GP a success.