REPUBLIC OF INDIA. Consultations Workshops. Regarding. The Comprehensive Review of the AfDB s Procurement Policy. India

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1 REPUBLIC OF INDIA Consultations Workshops Regarding The Comprehensive Review of the AfDB s Procurement Policy India March 2014

2 Concerning the comprehensive Review of the African Development Bank s Procurement Policy Attendance Sheet Date: 13 March 2014 Location: New Delhi, India Name Institution Position Mr. Girish Bhatnagar Indian Railways Institute of Logistics & Materials Management (IRILMM) Director Mr. P K Gupta Delhi Metro Corporation General Manager Mr. Aditya Sharma RITES Group General Manager - MSM Mr. S Krishnan Individual Procurement Expert Mr. Om Prakash Individual Procurement Expert Mr. K P Varma Individual Procurement Expert Consultations Workshops New Delhi, India March 2014 Page 2 of 7

3 Concerning the comprehensive Review of the African Development Bank s Procurement Policy Attendance Sheet Date: 14 March 2014 Location: Ministry of Finance, New Delhi, India Name Institution Position Mr. Nilay Mitash Ministry of Finance Join Secretary Ms. S B Sharan Ministry of Finance Director ( ADB) Mr. Ashish Vachchani Ministry of Finance Director ( Infra) Mr. Brijesh Pandey Ministry of Finance Deputy Secretary ( WB) Ms. Abhisha Mohepatra Ministry of Finance Deputy Secretary ( PPP) Mr. Jitendra Malick Ministry of Finance Under Secretary Consultations Workshops New Delhi, India March 2014 Page 3 of 7

4 Concerning the comprehensive Review of the African Development Bank s Procurement Policy Attendance Sheet Date: 14 March 2014 Location: FICCI, Federation House, New Delhi, India Title First Surname Designation Organization Dr. Harinder Singh Sidhu General Manager - Corporate Operation Apollo Hospitals Enterprises Ltd (AHEL) Mr. Shamlal Tagra Vice President International Marketing Apollo International Limited Mr. K. Senthil Kumar Additional General Manager Bharat Heavy Electricals Limited - International Operation Division Mr. Prahalathan S Mr. V. Ramakrishnan Iyer General Manager Export-Import Bank of India Consultant - Business Development IL&FS Infrastructure Development Corporation Ltd Mr. SK Puri President Ms. Preety Khattar Manager Intercontinental Consultants & Technocrats Intercontinental Consultants & Technocrats Mr. Pankaj Chabaque Mr. Vikas Dave Head International Projects Senior Manager - International Business International Tractors Ltd International Tractors Ltd Mr. Harinder Singh Head Mining Jindal Power & Steel Consultations Workshops New Delhi, India March 2014 Page 4 of 7

5 Mr. Sanjay Aggarwal Mr. Himanshu Sharma Director- Procurement Policy VP- Strategy & Planning Ministry of Finance Overseas Infrastructure Alliance ( India) Pvt Ltd Mr. Aditya Sharma Mr. Anik Roy Group General Manager - MSM Sr. Manager Business Development RITES SSP Pvt Ltd Mr. Kamendra Kumar Group General Manager Telecommunications Consultants India Limited Ms. Priti Jain Senior Procurement Specialist The World Bank Mr. Anand Kumar Srivastava Senior Procurement Specialist The World Bank Mr. Vijay Kumar Browning GM- Corporate Relation Tractors and Farm Equipment Limited (TAFE) Mr. Raghunath Mahapatra VP-Strategy Welspun Energy Ltd Consultations Workshops New Delhi, India March 2014 Page 5 of 7

6 Concerning the comprehensive Review of the African Development Bank s Procurement Policy Date: March 2014 Location: New Delhi, India Conclusions The revised policy should encourage the use of country systems. The approach should, however, be incremental i.e. assess the existing system, utilize its compliant features, identify gaps and build capacity to close those gaps. The all or nothing approach should not be adopted. It is advised for the Bank to conduct an assessment of its internal capacity to ensure the successful implementation of the revised policy. The Bank should also consider forming a group of highly experienced procurement experts to provide advice to procurement specialists on the implementation of the revised policy; this group may also consolidate case studies and lessons learnt. Labeling the second tier document which mainly describes the procedures as Operations Procurement Manual may not be appropriate as the title would suggest this to be obligatory and prescriptive. Since the intention is for the procedures to provide a sufficient level of flexibility, it is advised for the Bank to think of a different label. Concerning sustainability issues, the Bank was advised to be cautious while considering new concepts like green procurement under the revised policy. Green procurement as a concept is not yet mature and, if not properly managed, could prove counter-productive to industries from Africa. The revised policy should encourage the use of e-procurement. IT tools should also be developed for the contract implementation phase. There is also a need to define standards for e-procurement which should be reasonable. The Bank was cautioned against setting unnecessarily high standards that may create a barrier as it will be difficult to meet by many countries. Consultations Workshops New Delhi, India March 2014 Page 6 of 7

7 On fraud & corruption, it was felt that this should continue to be handled by a separate arm of the Bank, and that more attention and focus should be on the occurrence of F&C during contract implementation. In addition, it was felt that F&C should not be handled on transactional basis, and that a more systematic approach is required by building the capacity of oversight bodies in the countries. The fit for purpose approach is highly supported, though the revised policy may take into consideration different countries experiences. For example, Indian government has successfully executed more than one thousand PPP projects using their own systems. The Indian government will be willing to share their experiences with the Bank on PPP projects. There was a general concern on the timeline allocated to the review exercise, the Bank was advised to try and give member countries more time to develop a better understanding of the revised policy. The harmonization of the revised policy with that of other MDBs was considered as needed, though the specific context of the African continent should be taken into consideration. The approach of separating the policy from the procedures is highly supported. The revised policy should emphasize addressing complex procurement early i.e. during the project appraisal. Most participants indicated that the one size fit all approach under the current policy is not efficient and supported the fit for purpose approach envisaged under the revised policy. Some participants indicated that the revised policy should address the long procurement lead time, e.g. bid running period. The revised policy should increase the efficiency of the procurement process and minimize delays. The revised policy should take socio-economic factors into consideration. A concern was raised on the lack of capacity in some countries with regards to using the Bank s rules. The Bank was encouraged to address this issue while rolling out the revised policy. Consultations Workshops New Delhi, India March 2014 Page 7 of 7