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2011 Seminar 1

Nuruddeen Rafindadifor Emeka Ezeh

Insuring Quality and Harmonising Best Practice

Consultant Selection and Practices In Nigeria

Monday, 03 October 2011, 16.00 – 17.30

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ENGR. EMEKA M. EZEH, fnseDIRECTOR-GENERAL

BUREAU OF PUBLIC PROCUREMENT (BPP) - NIGERIA

by

DATE: MONDAY , OCTOBER 3, 2011TIME: 14.00 – 17.30VENUE: DAVOS, SWITZERLAND

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2011 Cont..

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Nigeria is a Federal Constitutional Republic comprising thirty-six states and the Federal Capital Territory, AbujaLargest City: LagosOfficial Language: EnglishThree major languages: Hausa, Igbo, YorubaType of Government: Presidential SystemTotal Area: 923,768 km2 (356,667 sqm)Population: by 2010 estimate is 152,217,341 million The most populous country in AfricaThe Seventh most populous country in the world in which the majority of the population is blackListed among the “Next Eleven “ economiesSource: Wikipedia, the free encyclopaedia

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2011 Introduction

World Bank initiated Country wide Procurement Reforms in Africa between 1999 – 2000. Nigeria, Ghana, Sierra Leone, Tanzania, Botswana, Zambia Etc have all implemented procurement law reformsPost Procurement reform challenges in Africa are largely the same in countries where the Procurement law have been implemented

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2011 Objectives of the Procurement Reforms

The core objectives of the Public Procurement Reforms are to achieve the Following:

CompetitionEconomyValue for moneyEfficiencyTransparency

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2011 Consultants Selection Process & Practices

Selection Process for Consultants in Africa in general and Nigeria in particular are modeled after the World Bank Procurement Guidelines.Selection of Consultants is principally guided by sections 44 to 47of the Public Procurement Act, 2007 to include:

Preparation of Terms of Reference (TOR)Preparation of Cost Estimate and confirmation of available budgeted funds Choice of selection methodAdvertising for expression of interestPreparation of the shortlist of consultants on the basis of the expressions of interests received7

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2011 Cont…

Preparation and issuance of the request for proposal(RFP)Receipt of proposals in two envelopesEvaluation of technical proposalsOpening and evaluation of Financial proposalsConsolidated evaluation according to the criteria stated in the RFPNegotiation and award of the contract to the selected firm.

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2011 Current Guidelines for Selection of Consultants

Standard bidding documents and Request forProposals (RFP) guiding the selection of consultants for the following payment terms

have been issued.

Complex time basedComplex Lump sumSmall Assignment Lump sumSmall assignment Time basedSelection of Individual Consultants

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2011 Selection Methods

The Selection method adopted will depend on the value threshold.The following methods are generally applicable

Quality and Cost based Selection (QCBS)>$250,000.00Quality Based Selection<$250,000.00Fixed Budget Least Cost <$250,000.00Single Source < $25,000.00

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2011 Implementation Challenges

Challenges are classified into three broad categories:

PeopleProcessTechnology

Peopleo Competence gap of all stakeholders(Client,

Service providers and process managers)o Personal Integrity of all stakeholderso Capacity of stakeholders(Staff Strength and

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ProcessGeneral lack of knowledge and understanding of the procedures by stakeholdersStakeholders are reluctant to comply with

guidelines Political interference High turn over of personnel within implementing agencies

Technology/Systems• Inadequate modern technology hardware,

Software and skills• Inadequate infrastructure (Power and Internet

broadband)• High cost of acquiring the technology is high12

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2011 Dealing with integrity issues

Sections 53 & 54 of the Public Procurement Act, 2007 clearly prescribes the complaints procedures to be followed when there is a breach of the law which requires a very strong political will to implement.Complaints Procedures:

On receipt of complaint all bidders and the affected MDA are put on noticeBased on the response from the affected MDAs, all the bidders and MDAs are invited to a Right of Reply meetingOn the basis of meeting proceedings, the Bureau will either uphold or reverse the decision of the MDA to reflect the correct position or cancel the entire processThe Bureau will normally refer breaches of the law to appropriate law enforcement agencies for further investigation and prosecution 13

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2011 Cont..

Breaches of the Public Procurement Act, 2007

One high ranking political office holder was jailed for two yearsThree honourable Ministers are currently being prosecutedTwo national assembly members are being prosecutedSeveral civil servants are being investigated

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2011 LITIGATIONS BEFORE THE COURTS OF LAW

Eleven(11) Nos. Cases before the Federal High CourtsSix(6) Nos. Cases are currently pendingThree(3) Nos. Cases have been

determined in favour of BPPTwo(2) Nos. Cases have been

dismissed/ struck outNote that BPP is a Prosecuting Witness in Two(2) Nos. other Cases by security agencies

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2011 Issues at Hand

Building country wide capacity and procurement management systemsDevelopment of strong technology systems to drive procurement systemsInvolvement of high level policy makers in the reform processCategorization and classification of service providers in NigeriaDe-politicize Procurement Continue with capacity building and competence developmentStrong international support required

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2011

Business Opportunities –

1. Water Supply and Wastewater - Infrastructure development, upgrade and maintenanceMambilla Multi-Purpose Dam

Gurara Multi purpose DamKashimbilla DamZungeru DamKainji Hydropower DamJebba Hydropower DamDadin Kowa Multi-Purpose DamWater Treatment and Supply in major cities in NigeriaWastewater treatment and recycling in major cities in Nigeria

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Business Opportunities Cont… 

2. Transportation ‐ Infrastructure development, upgrade   and maintenance

•2nd Niger Bridge in Onitsha•350km standard gauge rail line between East and West of Nigeria•Standard gauge rail line between Port Harcourt to Maiduguri•Standard gauge rail line between Zaria to Kaura Namoda•Standard gauge rail line between Lagos  and Kano•East West road in the Niger Delta•Feasibility studies, Design and dredging of River   Benue •Design and dredging of River Niger

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Business Opportunities Cont….

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3. Power ‐ Infrastructure development, upgrade and maintenanceDevelopment of policy frameworks/review

•Building of New plants and Upgrade•1 MW Coal fired power plants in Enugu, Gombe and Kogi  States of Nigeria 

•750 kV Super grid power line with associated substations•4,200 Megawatts peak Mambila hydro power station with   1km piped water fall•Fuel Poverty Studies and Support Models future •Assessment of the Nationwide Power emergency management•Energy use and reduction models

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2011 Business Opportunities Cont..

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4. Services ‐ Infrastructure development, upgrade and maintenance

•Asset  Management Models•Infrastructure concession models (PPPs, BOTs etc)•Training Services for staff to be engaged in new developments•Environmental Sustainability assessments for projects•Model for adoption of Strategic Impact Assessments•Intelligence based Security Systems•Model for Close Circuit Systems implementation•Environmental Health Models•Database systems and linkage models•Financial Models to support new systems•Auditing Models to Check and correct proposed plans•Development of Stakeholder engagement models•Food Security Models and Supporting Infrastructure

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““DON’T DO THE WRONG THING TO KEEP A

FRIEND OR TO MAKE ONE”

- SRI HAROLD

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CONCLUSION

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22Thank You!

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FOURTH NATIONAL PROCUREMENT FORUM JULY, 2011

DG (BPP) with Former President, Honourable Minister of Power, International Resource Persons with the DG (BPP)Secretary to the Federal Government and the Head of Civil Service.

Section of Participants at the Forum. Facilitators at the 4TH National Procurement Forum

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INTERACTIVE SESSION WITH THE FEDERAL CAPITAL DEVELOMENT AUTHORITY

DG (BPP) with Former President, Honourable Minister of FCDA A Cross Section of FCDA Heads of Department/Units involved in Procurement

A Cross Section of FCDA Heads of Department/Units involved in Procurement Directors of BPP with Heads of Department/Units in FCDA involved in Procurement