Page 1 Uganda Country Procurement Assessment Report (CPAR) Volume III ANNEXES June 15, 2004 Operational Quality and Knowledge services Africa Region 32499 v3 Page 2 U g a n d a 2 0 0 4 C P A R – A n n e x e s - 2 - J u n e 2 0 0 4 T a b l e o f C o n t e n t s A N N E X 1 - L i s t o f T a s k F o r c e M e m b e r s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 A n n e x 2 : M o n i t o r i n g a n d C o n t r o l l i n g P u b l i c P r o c u r e m e n t . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 A n n e x 3 : S t a t u s o n r e c o m m e n d a t i o n s f r o m U g a n d a C P A R 2 0 0 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 A n n e x 4 : L i s t o f p e o p l e m e t d u r i n g m a i n m i s s i o n s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 3 A N N E X 5 - C h e c k l i s t c o m p a r i n g N a t i o n a l C o m p e t i t i v e B i d d i n g P r o c e d u r e s a n d W o r l d B a n k P o l i c y . . . . 1 7 A N N E X 6 - Q u e s t i o n n a i r e o n P u b l i c P r o c u r e m e n t S y s t e m . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 0 A N N E X 7 - R E C O M M E N D E D C P A R A C T I O N P L A N . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 9 Page 3 U g a n d a 2 0 0 4 C P A R – A n n e x e s - 3 - J u n e 2 0 0 4 A N N E X 1 - L i s t o f T a s k F o r c e M e m b e r s N a m e O r g a n i z a t i o n 1 . M r . M . N K a m u g i s h a M i n i s t r y o f F i n a n c e , P l a n n i n g & E c o n o m i c D e v e l o p m e n t 2 . M r . P a t r i c k M u t a b w i r e M i n i s t r y o f L o c a l G o v e r n m e n t 3 . M r s . A d a h K a b a r o k o l e M u w a n g a M i n i s t r y o f P u b l i c S e r v i c e 4 . M r . A e l o i D e o M i n i s t r y o f W o r k s , H o u s i n g & C o m m u n i c a t i o n 5 . M r . K i s i t u J o n a t h a n M i n i s t r y o f H e a l t h 6 . M r . D a v i d K i y i n g i M i n i s t r y o f E d u c a t i o n a n d S p o r t s 7 . M r . W . Z B u s h o b e r w a M i n i s t r y o f T o u r i s m , T r a d e & I n d u s t r y 8 . M r . A s h a b a - A h e b w a D i r e c t o r a t e o f E t h i c s & I n t e g r i t y 9 . T h e S o l i c i t o r G e n e r a l 1 0 . M r . K a l u l e S w a i b u I n s p e c t o r G e n e r a l o f G o v e r n m e n t 1 1 . J o h n W a l a l a U g a n d a R e v e n u e A u t h o r i t y 1 2 . E d g a r K a m a r a N a t i o n a l C h a m b e r o f C o m m e r c e 1 3 . E n g . H a n s J . W . B M w e s i g w a U g a n d a I n s t i t u t i o n o f P r o f e s s i o n a l E n g i n e e r s 1 4 . E n g . G . B Z a r i b w e n d e U g a n d a N a t i o n a l A s s o c i a t i o n o f B u i l d i n g , C i v i l E n g i n e e r i n g a n d C o n t r a c t o r s 1 5 . D r . K i t u u k a S t e p h e n I n s t i t u t i o n o f U g a n d a n S u r v e y o r s 1 6 . M s . R h o d a M u g a m b a M a k e r e r e U n i v e r s i t y 1 7 . M r . D a v i d K a b a t e r i n e M i n i s t r y o f F i n a n c e , P l a n n i n g & E c o n o m i c D e v e l o p m e n t 1 8 . P r o f . S a m T u l y a - M u h i k a I n t e r n a t i o n a l D e v e l o p m e n t C o n s u l t a n t s L t d 1 9 . M r . M u k w a y a B e r n a r d U g a n d a N a t i o n a l B u r e a u o f S t a n d a r d s 2 0 . M r s . L i z N k o n g i U g a n d a L o c a l A u t h o r i t i e s A s s o c i a t i o n 2 1 . M r . J u l i u s P . M o t t o P r i v a t e S e c t o r F o u n d a t i o n 2 2 . A r c h i t e c t S t a n l e y M u l u m b a A r c h i t e c t s R e g i s t r a t i o n B o a r d 2 3 . D r . P a u l S a g a l a U g a n d a A s s o c i a t i o n o f C o n s u l t i n g E n g i n e e r s 2 4 . 2 4 . M r . M a r t i n O n y a c h O l a a M i n i s t r y o f L o c a l G o v e r n m e n t 2 5 . A r c h i t e c t J o e l K a t e r e g g a U g a n d a S o c i e t y o f A r c h i t e c t s 2 6 . M r . D a u d i N d i w a l a n a U g a n d a M a n u f a c t u r e r s A s s o c i a t i o n 2 7 . B e n M i c h a e l K i i z a V i c t o r i a M o t o r s L t d . 2 8 . M r s . R e b e c c a N a m i r e m b e U M I A 2 9 . E n g . I . W B a r a s a U g a n d a A s s o c i a t i o n o f C o n s u l t i n g E n g i n e e r s Page 4 U g a n d a 2 0 0 4 C P A R – A n n e x e s - 4 - J u n e 2 0 0 4 A n n e x 2 : M o n i t o r i n g a n d C o n t r o l l i n g P u b l i c P r o c u r e m e n t O v e r v i e w o f a l l C e n t r a l a n d L o c a l G o v e r n m e n t P r o c u r i n g a n d D i s p o s i n g E n t i t i e s R e p o r t f o r P e r i o d E n d i n g : _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ I n d i c a t o r V a l u e F Y 0 0 / 0 1 F Y 0 1 / 0 2 F Y 0 2 / 0 3 F Y 0 3 / 0 4 F Y 0 4 / 0 5 F Y 0 5 / 0 6 F Y 0 6 / 0 7 N u m b e r 1 . N u m b e r a n d p e r c e n t a g e o f P r o c u r i n g a n d D i s p o s i n g E n t i t i e s ( P D E s ) 1 t h a t d o n o t h a v e a p r o c u r e m e n t p l a n a p p r o v e d b y t h e i r a c c o u n t i n g o f f i c e r P e r c e n t a g e N u m b e r 2 . N u m b e r a n d p e r c e n t a g e o f P D E p r o c u r e m e n t a c t i v i t i e s t h a t h a v e b e e n i n i t i a t e d b u t a r e n o t i n t h e a p p r o v e d p r o c u r e m e n t p l a n P e r c e n t a g e N u m b e r 3 . N u m b e r a n d p e r c e n t a g e o f P D E s 2 t o w h i c h f u n d s h a v e b e e n r e l e a s e d b u t t h a t h a v e n o t p r e p a r e d p r o c u r e m e n t p l a n s P e r c e n t a g e N u m b e r 4 . N u m b e r a n d p e r c e n t a g e o f p r o c u r e m e n t a c t i v i t i e s f o r w h i c h t h e r e h a s b e e n n o p u b l i c a d v e r t i s e m e n t t o t e n d e r P e r c e n t a g e N u m b e r 5 . N u m b e r a n d p e r c e n t a g e o f b i d s i s s u e d b e f o r e r e q u i r e m e n t s h a v e b e e n d e f i n e d , a n d s p e c i f i c a t i o n s a n d e s t i m a t e s e s t a b l i s h e d P e r c e n t a g e N u m b e r 6 . N u m b e r a n d p e r c e n t a g e o f c o n t r a c t s a w a r d e d w i t h o u t b i d s h a v i n g b e e n s o l i c i t e d . P e r c e n t a g e N u m b e r 7 . N u m b e r a n d p e r c e n t a g e o f c o n t r a c t s n o t a w a r d e d t o t h e l o w e s t e v a l u a t e d b i d P e r c e n t a g e N u m b e r 8 . N u m b e r a n d p e r c e n t a g e o f c o n t r a c t s a w a r d e d w i t h o u t a b i d e v a l u a t i o n b a s e d u p o n p r e - d e t e r m i n e d e v a l u a t i o n c r i t e r i a P e r c e n t a g e N u m b e r 9 . N u m b e r a n d p e r c e n t a g e o f c o n t r a c t s a w a r d e d m o r e t h a n 3 0 d a y s a f t e r t h e b i d - c l o s i n g d a t e . P e r c e n t a g e T o t a l V a l u e 1 0 . T o t a l v a l u e o f c o n t r a c t s a w a r d e d u s i n g m e t h o d s t h a t a r e l e s s c o m p e t i t i v e t h a n t h o s e s e t o u t i n t h e a p p r o v e d p r o c u r e m e n t p l a n , a n d t h e i r v a l u e a s a p e r c e n t a g e o f a l l c o n t r a c t s a w a r d e d . P e r c e n t a g e 1 T h i s o v e r v i e w r e p o r t c o m b i n e s i n f o r m a t i o n f r o m t w o g r o u p s o f P r o c u r i n g a n d D i s p o s i n g E n t i t i e s ( P D E s ) : M i n i s t r i e s , D e p a r t m e n t s a n d A g e n c i e s ( M D A s ) i n t h e C e n t r a l G o v e r n m e n t ; a n d D i s t r i c t s a t t h e L o c a l G o v e r n m e n t l e v e l . T h e e x p r e s s i o n P D E s t h u s r e f e r s t o a l l M D A s a n d D i s t r i c t s . 2 M i n i s t r i e s , D e p a r t m e n t s a n d A g e n c i e s o f G o v e r n m e n t Page 5 U g a n d a 2 0 0 4 C P A R – A n n e x e s - 5 - J u n e 2 0 0 4 I n d i c a t o r V a l u e F Y 0 0 / 0 1 F Y 0 1 / 0 2 F Y 0 2 / 0 3 F Y 0 3 / 0 4 F Y 0 4 / 0 5 F Y 0 5 / 0 6 F Y 0 6 / 0 7 N u m b e r 1 1 . N u m b e r a n d p e r c e n t a g e o f c o n t r a c t a w a r d s t h a t h a v e b e e n a p p e a l e d P e r c e n t a g e N u m b e r 1 2 . N u m b e r a n d p e r c e n t a g e o f c o n t r a c t a w a r d s t h a t h a v e b e e n a p p e a l e d s u c c e s s f u l l y P e r c e n t a g e N u m b e r 1 3 . N u m b e r a n d p e r c e n t a g e o f c o n t r a c t s a w a r d e d b e f o r e t h e r e w a s a c o n f i r m a t i o n o f f u n d s b e i n g a v a i l a b l e P e r c e n t a g e N u m b e r 1 4 . N u m b e r a n d p e r c e n t a g e o f a p p r o v e d c o n t r a c t v a r i a t i o n s t h a t e x c e e d t h e t h r e s h o l d s s e t o u t i n t h e P u b l i c P r o c u r e m e n t R e g u l a t i o n s P e r c e n t a g e T o t a l v a l u e 1 5 . T o t a l v a l u e o f a p p r o v e d c o n t r a c t v a r i a t i o n s t h a t e x c e e d t h e t h r e s h o l d s s e t o u t i n t h e P u b l i c P r o c u r e m e n t R e g u l a t i o n s , a n d t h e i r v a l u e a s a p e r c e n t a g e o f t h e t o t a l v a l u e o f t h e c o n t r a c t s t o w h i c h t h e y a r e r e l a t e d . P e r c e n t a g e N u m b e r 1 6 . N u m b e r a n d v a l u e o f b i d v a l i d i t i e s t h a t h a v e b e e n e x t e n d e d V a l u e N u m b e r 1 7 . N u m b e r a n d p e r c e n t a g e o f p a y m e n t s t o c o n t r a c t o r s t h a t h a v e b e e n p a i d m o r e t h a n 3 0 d a y s a f t e r t h e s u b m i s s i o n o f a c l a i m P e r c e n t a g e N u m b e r 1 8 . N u m b e r a n d p e r c e n t a g e o f c o n t r a c t s t e r m i n a t e d e a r l y b y P D E s a f t e r p a y m e n t s w e r e m a d e b u t b e f o r e g o o d s a n d s e r v i c e s w e r e d e l i v e r e d P e r c e n t a g e T o t a l v a l u e 1 9 . T o t a l v a l u e o f p a y m e n t s i s s u e d a g a i n s t c o n t r a c t s t e r m i n a t e d e a r l y b y P D E s b e f o r e g o o d s a n d s e r v i c e s w e r e d e l i v e r e d , a n d t h e v a l u e o f t h i s a m o u n t a s a p e r c e n t a g e o f t h e t o t a l v a l u e o f t h e c o n t r a c t s t o w h i c h t h e y a r e r e l a t e d . P e r c e n t a g e N u m b e r 2 0 . N u m b e r a n d p e r c e n t a g e o f c o n t r a c t s a b a n d o n e d b y c o n t r a c t o r s a f t e r a d v a n c e p a y m e n t s w e r e r e c e i v e d , b u t b e f o r e g o o d s a n d s e r v i c e s w e r e d e l i v e r e d . P e r c e n t a g e T o t a l v a l u e 2 1 . T o t a l v a l u e o f a d v a n c e p a y m e n t s i s s u e d a g a i n s t c o n t r a c t s a b a n d o n e d b y c o n t r a c t o r s b e f o r e g o o d a n d s e r v i c e s w e r e d e l i v e r e d , a n d t h e v a l u e o f t h i s a m o u n t a s a p e r c e n t a g e o f t h e t o t a l v a l u e o f t h e c o n t r a c t s t o w h i c h t h e y a r e r e l a t e d . P e r c e n t a g e 2 2 . N u m b e r o f c o m p l a i n t s a b o u t c o r r u p t p r a c t i c e i n p r o c u r e m e n t f i l e d w i t h t h e P P D A , I G G o r C I D 3 N u m b e r 3 P u b l i c P r o c u r e m e n t a n d D i s p o s a l o f P u b l i c A s s e t s A u t h o r i t y , I n s p e c t o r a t e G e n e r a l o f G o v e r n m e n t , C r i m i n a l I n v e s t i g a t i o n D e p a r t m e n t Page 6 U g a n d a 2 0 0 4 C P A R – A n n e x e s - 6 - J u n e 2 0 0 4 I n d i c a t o r V a l u e F Y 0 0 / 0 1 F Y 0 1 / 0 2 F Y 0 2 / 0 3 F Y 0 3 / 0 4 F Y 0 4 / 0 5 F Y 0 5 / 0 6 F Y 0 6 / 0 7 2 3 . N u m b e r o f f i r m s a n d i n d i v i d u a l s b l a c k l i s t e d f o r h a v i n g b e e n f o u n d g u i l t y o f a n y c o r r u p t p r a c t i c e i n c l u d i n g m i s r e p r e s e n t i n g a n y f a c t s i n r e s p e c t o f o w n e r s h i p i n a t e n d e r s u b m i s s i o n o r i n r e g i s t r a t i o n w i t h t h e R e g i s t r a r o f C o m p a n i e s . N u m b e r 2 4 . N u m b e r o f s t a f f w h o h a v e b e e n d i s c i p l i n e d , s a n c t i o n e d o r c h a r g e d w i t h b r e a k i n g t h e l a w i n c o n n e c t i o n w i t h p u b l i c p r o c u r e m e n t o r d i s p o s a l a c t i v i t i e s N u m b e r N u m b e r 2 5 . N u m b e r a n d p e r c e n t a g e o f P D E s t h a t h a v e b e e n g i v e n a c l e a n a u d i t c e r t i f i c a t e b y t h e P P D A P e r c e n t a g e N u m b e r 2 6 . N u m b e r a n d p e r c e n t a g e o f P D E s t h a t h a v e b e e n g i v e n a c l e a n a u d i t c e r t i f i c a t e b y t h e A u d i t o r G e n e r a l P e r c e n t a g e N u m b e r 2 7 . N u m b e r a n d p e r c e n t a g e o f P D E a c c o u n t i n g o f f i c e r s s a n c t i o n e d f o r m a t t e r s r e l a t i n g t o p u b l i c p r o c u r e m e n t o r d i s p o s a l P e r c e n t a g e Page 7 U g a n d a 2 0 0 4 C P A R – A n n e x e s - 7 - J u n e 2 0 0 4 A n n e x 3 : S t a t u s o n r e c o m m e n d a t i o n s f r o m U g a n d a C P A R 2 0 0 1 U g a n d a C P A R 2 0 0 1 S t a t u s : R e c o m m e n d a t i o n s A c c o m p l i c e d I n p r o c e s s N o a c t i o n R e c o m m e n d a t i o n S t a t u s C o m m e n t s P R O C E D U R E S A N D P R A C T I C E S P r o c u r e m e n t P l a n n i n g a n d A n n u a l U p d a t i n g o f P l a n s 1 M i n i s t r i e s , a g e n c i e s a n d p a r a s t a t a l s s h o u l d b e r e q u i r e d t o p r e p a r e p r o c u r e m e n t p l a n s a s p a r t o f b u d g e t p r o p o s a l s . F u n d s s h o u l d n o t b e r e l e a s e d t o a g e n c i e s w i t h o u t p r o c u r e m e n t p l a n s . P r o c u r e m e n t p l a n s s h o u l d b e r e v i s e d o n a s i x - m o n t h b a s i s . R e p e a t e d a d h o c a n d e m e r g e n c y p r o c u r e m e n t s h o u l d n o t b e s a n c t i o n e d . P r o c u r e m e n t p l a n s a r e a r e q u i r e m e n t o f t h e P r o c u r e m e n t A c t , b u t n o t t h e r e q u i r e m e n t i s n o t a d e q u a t e l y e n f o r c e d P r o c u r e m e n t P r o c e s s a n d M e t h o d s 2 S t a n d a r d B i d d i n g D o c u m e n t s ( S B D s ) s h o u l d b e p r e p a r e d f o r g o o d s , w o r k s a n d s e r v i c e s . T h e g o o d s a n d w o r k S B D s s h o u l d i n c l u d e t h e f o l l o w i n g a s a m i n i m u m : I n v i t a t i o n s f o r B i d s ; I n s t r u c t i o n s t o B i d d e r s ; G e n e r a l C o n d i t i o n s o f C o n t r a c t ; a n d S t a n d a r d f o r m s . F o r c o n s u l t a n c y s e r v i c e s t h e m i n i m u m s h o u l d b e : L e t t e r o f I n v i t a t i o n ; I n s t r u c t i o n s t o C o n s u l t a n t s ; G e n e r a l C o n d i t i o n s o f C o n t r a c t a n d s t a n d a r d f o r m s . I t s h o u l d b e m a d e c l e a r m a n d a t o r y f o r a l l t h e p r o c u r e m e n t e n t i t i e s t o u s e t h e s t a n d a r d b i d d i n g d o c u m e n t s . T h e W o r l d B a n k S B D s c o u l d b e a d a p t e d f o r t h i s p u r p o s e . T h e P P D A h a v e i s s u e d d r a f t S B D s o n w o r k s . E v e n t h o u g h t h e s e a r e o n l y d r a f t s , t h e y a r e i n u s e . S B D s i n o t h e r a r e a s r e m a i n . 3 T h e f e e s t o b e c h a r g e d f o r b i d d i n g d o c u m e n t s s h o u l d b e t h e m i n i m u m r e q u i r e d t o c o v e r p r o d u c t i o n c o s t s . O p e r a t i o n a l e x p e n s e s f o r t h e T e n d e r B o a r d s h o u l d b e p a r t o f t h e n o r m a l o p e r a t i o n a l b u d g e t . B i d d e r s r e p o r t e x c e s s i v e c h a r g i n g f o r i n c l u s i o n o n r e g i s t r a t i o n l i s t s . 4 R e m o v e r e q u i r e m e n t f o r s i t e v i s i t a s a p r e q u a l i f i c a t i o n c r i t e r i o n . T h i s i s n o l o n g e r a r e q u i r e m e n t i n t h e R e g u l a t i o n s . Page 8 U g a n d a 2 0 0 4 C P A R – A n n e x e s - 8 - J u n e 2 0 0 4 R e c o m m e n d a t i o n S t a t u s C o m m e n t s 5 S t o p a c c e p t i n g b i d b o n d s a n d a d v a n c e p a y m e n t s e c u r i t y b o n d s f r o m i n s u r a n c e c o m p a n i e s a n d o n l y a c c e p t t h o s e i s s u e d b y r e p u t a b l e B a n k s . S i n c e b i d s e c u r i t i e s o f f e r e d b y b a n k s a r e v e r y e x p e n s i v e , o n e o p t i o n i s t o i n c l u d e i n t h e f u t u r e l a w a u t o m a t i c s u s p e n s i o n o f a b i d d e r w h o , w i n n i n g a c o n t r a c t , d o e s n o t s i g n i t . 6 D e v e l o p s t a n d a r d c o n t r a c t s f o r s e r v i c e , g o o d s a n d w o r k s w h e r e t h e s e i s s u e s a r e r e g u l a t e d a c c o r d i n g t o n o r m a l i n t e r n a t i o n a l s t a n d a r d s . T h i s w i l l m a k e i s s u e s l i k e s i z e o f a d v a n c e p a y m e n t s - - a n o n - n e g o t i a b l e i s s u e , p r o v i s i o n f o r i n t e r e s t p a y m e n t s t o c o n t r a c t o r s w i l l b e i n t r o d u c e d , a n d l i q u i d a t e d d a m a g e s w i l l b e i n c l u d e d . A d v a n c e p a y m e n t s s h o u l d b e l i m i t e d t o a m a x i m u m o f 2 0 % o f c o n t r a c t p r i z e . S t a n d a r d c o n t r a c t s w i l l b e p a r t o f t h e S B D s w h e n t h e y a r e d e v e l o p e d . 7 I m p l e m e n t m o r e l i m i t a t i o n s o n t h e u s e o f r e s t r i c t e d t e n d e r i n g a n d r e q u i r e t h a t t h e s h o r t - l i s t i n g p r o c e s s b e f a i r w h e n r e s t r i c t e d t e n d e r i n g i s u s e d . T h e u s e o f t h e r e g i s t r a t i o n l i s t s a n d n o n - t r a n s p a r e n t s h o r t - l i s t i n g p r o c e d u r e s r e m a i n s o n e o f t h e m o s t p r e s s i n g i s s u e s t o b e d e a l t w i t h 8 T h e u s e o f m e r i t p o i n t s y s t e m f o r g o o d s a n d w o r k s s h o u l d b e d i s c o n t i n u e d u n l e s s t h e g o o d s a r e o f v e r y c o m p l e x n a t u r e , b e c a u s e i t i s p r o n e t o s u b j e c t i v i t y . T h e R e g u l a t i o n s a l l o w m e r i t p o i n t s y s t e m 9 I n o r d e r t o d e t e r m i n e t h e l e v e l o f p r e f e r e n c e s t o b e g i v e n t o d o m e s t i c s u p p l i e r s , d u e c o n s i d e r a t i o n s h o u l d b e g i v e n t o t h e e c o n o m i c b e n e f i t s t o b e d e r i v e d . T o t h i s e f f e c t a m i n i m u m o f 3 0 % v a l u e a d d e d i s b e i n g r e c o m m e n d e d . D o m e s t i c p r e f e r e n c e s h o u l d b e a p p l i c a b l e t o t e n d e r s u n d e r i n t e r n a t i o n a l c o m p e t i t i v e b i d d i n g o n l y . T h e R e g u l a t i o n s d o n o t c o n t a i n p r e c i s e a n d m a n d a t o r y r u l e s o n a p p l i c a t i o n o f d o m e s t i c p r e f e r e n c e 1 0 T o a v o i d p o t e n t i a l c o n f l i c t - o f - i n t e r e s t i n p r o c u r e m e n t , t h e d e c l a r a t i o n o f a s s e t s a n d l i a b i l i t i e s o f l e a d e r s s h o u l d i n c l u d e o w n e r s h i p o f c o m p a n i e s o r s h a r e s i n c o m p a n i e s ; t h e n e w , c o m p u t e r i z e d r e g i s t r y o f c o m p a n i e s p r e p a r e d b y t h e M i n i s t r y o f J u s t i c e s h o u l d b e m a d e a v a i l a b l e t o t h e p u b l i c o n C D R O M a n d / o r a n i n t e r n e t w e b s i t e ; t h e U g a n d a l a n d r e g i s t r y , b e g i n n i n g w i t h t h e c i t y o f K a m p a l a , s h o u l d b e p u t o n t o a c o m p u t e r i z e d d a t a b a s e a n d b e m a d e a v a i l a b l e t o t h e p u b l i c ; a n d t h e l i s t o f f i r m s t e n d e r i n g f o r g o v e r n m e n t c o n t r a c t s s h o u l d b e p u b l i s h e d q u a r t e r l y . T h e C o m p a n y R e g i s t r a r i s s t i l l u n a b l e t o p r o v i d e t h e i n f o r m a t i o n n e e d e d . M o n i t o r i n g a n d C o n t r a c t M a n a g e m e n t 1 1 ( a ) D e v e l o p a h a n d b o o k f o r m o n i t o r i n g s e r v i c e s , g o o d s a n d w o r k s . T h e h a n d b o o k s h a l l b u i l d o n b e s t p r a c t i c e a n d g u i d e c o n t r a c t m a n a g e r s t h r o u g h t h e j o b i n a s y s t e m i c a n d p r o f e s s i o n a l m a n n e r . T h e h a n d b o o k m u s t b e d e s i g n e d t o s u i t t h e e x i s t i n g o r g a n i s a t i o n t o e n a b l e e a s y a p p l i c a t i o n . I t m u s t d e a l w i t h b o t h f i n a n c i a l a n d t e c h n i c a l i s s u e s a n d i t s d e v e l o p m e n t m u s t b e l i n k e d t o t h e i m p l e m e n t a t i o n o f t h e n e w p r o c u r e m e n t l a w a n d t h e r e q u i r e m e n t s d e r i v e d f r o m t h i s . T h e P P D A i n t e n d t o d e v e l o p g u i d e l i n e s i n p a r a l l e l w i t h t h e S B D s Page 9 U g a n d a 2 0 0 4 C P A R – A n n e x e s - 9 - J u n e 2 0 0 4 R e c o m m e n d a t i o n S t a t u s C o m m e n t s ( b ) F o r l a r g e r c o n t r a c t s , i n c l u d e a s a c o n d i t i o n f o r f i n a l p a y m e n t , t h a t a n e x t e r n a l e x p e r t t o g e t h e r w i t h t h e e m p l o y e r ' s r e p r e s e n t a t i v e c o - s i g n t h e c e r t i f i c a t e r e l e a s i n g f i n a l p a y m e n t . I n a c o n s t r u c t i o n p r o j e c t t h e e x t e r n a l e x p e r t c a n b e a n e n g i n e e r w h o i s a s k e d t o c h e c k t h a t b a s i c q u a l i t y a n d q u a n t i t y i s f u l f i l l e d b y t h e c o n t r a c t o r a c c o r d i n g t o t h e c o n t r a c t . T h e e x t e r n a l e x p e r t s h a l l b e n o m i n a t e d b y a p r o f e s s i o n a l o r g a n i s a t i o n a n d a p p o i n t e d b y t h e G o v e r n m e n t . T h e a p p o i n t m e n t w i l l b e d o n e i m m e d i a t e l y b e f o r e t h e i n s p e c t i o n t o a v o i d c o l l u s i o n b e t w e e n t h e e x p e r t a n d t h e c o n t r a c t o r . S u c h a c o n d i t i o n i s n o t i n c l u d e d i n t h e R e g u l a t i o n s ( c ) S t r e n g t h e n t h e m o n i t o r i n g s y s t e m b y d e v e l o p i n g a d e q u a t e s a n c t i o n s , w h i c h m u s t b e w e l l k n o w n t o b o t h c o n t r a c t o r s a n d i m p l e m e n t i n g a g e n c i e s . A s y s t e m o f m o n i t o r i n g i s w e l l d e v e l o p e d i n t h e P r o c u r e m e n t A c t , b u t n o t y e t i m p l e m e n t e d e f f e c t i v e l y ( d ) A m a x i m u m p e r i o d o f o n e m o n t h f o r p a y m e n t o f c o n t r a c t o r c l a i m s s h o u l d b e s e t . A c c o u n t i n g o f f i c e r s s h o u l d b e h e l d r e s p o n s i b l e f o r f a i l i n g t o m e e t s u c h s t a n d a r d s . S u c h a c o n d i t i o n i s n o t i n c l u d e d i n t h e R e g u l a t i o n s ( e ) C o n t r a c t v a r i a t i o n s s h o u l d b e d o n e o n l y u n d e r v e r y e x c e p t i o n a l c i r c u m s t a n c e s . W h e n t h i s i s a b s o l u t e l y n e c e s s a r y , a p p r o v a l m u s t b e o b t a i n e d f r o m t h e a p p r o p r i a t e t e n d e r b o a r d . T h e m e t h o d f o r d e t e r m i n i n g p r i c e v a r i a t i o n d u r i n g c o n t r a c t e x e c u t i o n m u s t b e i n c o r p o r a t e d i n t h e c o n t r a c t . T h e f o r m u l a m e t h o d i s r e c o m m e n d e d r a t h e r t h a n t h e m e t h o d o f d o c u m e n t a r y e v i d e n c e . P r e - c o n t r a c t n e g o t i a t i o n s a n d c o n t r a c t v a r i a t i o n s a r e f r e q u e n t l y s e e n . O f t e n c a u s e d b y p o o r s p e c i f i c a t i o n s . 1 2 ( a ) R e v i e w t h e e f f e c t i v e n e s s o f t h e c u r r e n t p r o c u r e m e n t f i l i n g s y s t e m i n a l l p u b l i c e n t i t i e s t o e n s u r e t r a n s p a r e n c y a n d a c c o u n t a b i l i t y a c c o r d i n g t o i n t e r n a t i o n a l b e s t p r a c t i c e . I n c l u d e r e c o r d m a n a g e m e n t a s p a r t o f b a s i c p r o c u r e m e n t t r a i n i n g p r o g r a m . S u c h a r e v i e w h a s n o t b e e n c a r r i e d o u t . ( b ) I f a n e w f i l i n g s y s t e m i s n o t f e a s i b l e a s a s h o r t - t e r m r e c o m m e n d a t i o n , a n o t h e r s o l u t i o n a i m e d a t p u b l i c p r o c u r e m e n t m u s t b e d e v e l o p e d . T h i s c a n b e a s a d e s c r i p t i o n o f m i n i m u m r e q u i r e m e n t s f o r a p a p e r b a s e d f i l i n g s y s t e m , w h i c h c a n d o c u m e n t t h e p r o c u r e m e n t p r o c e s s a n d e n s u r e a c c o u n t a b i l i t y a c c o r d i n g t o i n t e r n a t i o n a l s t a n d a r d s . T h e P r o c u r e m e n t A c t n o w c o n t a i n s s u c h m i n i m u m r e q u i r e m e n t s f o r a " p r o c u r e m e n t r e c o r d " " ( c ) F i l i n g s y s t e m s a n d a c c o u n t a b i l i t y s h a l l b e i n c l u d e d a s p a r t o f t h e b a s i c t r a i n i n g o f t h e p r o c u r e m e n t p r o f e s s i o n a l s t o e n s u r e c a p a c i t y o n h o w t o e s t a b l i s h a n d m a i n t a i n t h e f i l i n g s y s t e m . F u r t h e r i t m u s t b e e n s u r e d t h a t n e c e s s a r y f u n d s a r e a v a i l a b l e f o r t h e f i l i n g a n d d o c u m e n t a t i o n p r o c e s s . I t m u s t b e p o s s i b l e f o r t h e p r o c u r e m e n t p r o f e s s i o n a l s t o h a v e a c c e s s t o c o p y f a c i l i t i e s , p a p e r , r i n g b i n d e r s , f i l i n g c a b i n e t s e t c . T r a i n i n g i n f i l i n g i s t o s o m e e x t e n t a v a i l a b l e , b u t f u n d s a r e l a c k i n g f o r n e c e s s a r y o f f i c e e q u i p m e n t ( d ) A n a r c h i v i n g s y s t e m s h o u l d b e e s t a b l i s h e d . T h e R e c o r d s a n d A r c h i v e A c t ( 2 0 0 1 ) h a s n o t y e t b e e n i m p l e m e n t e d O R G A N I S A T I O N A N D R E S O U R C E S Page 10 U g a n d a 2 0 0 4 C P A R – A n n e x e s - 1 0 - J u n e 2 0 0 4 R e c o m m e n d a t i o n S t a t u s C o m m e n t s R e s o u r c e s - f i n d i n g s 1 3 I t w i l l t a k e t h e G o v e r n m e n t s o m e t i m e t o b u i l d t h e n e c e s s a r y p r o c u r e m e n t c a p a c i t y i n t h e p u b l i c s e c t o r . I n t h e m e a n t i m e , t h e G o v e r n m e n t i s a d v i s e d t o e m p l o y p r o c u r e m e n t a g e n t s t o c a r r y o u t p r o c u r e m e n t o n i t s b e h a l f . T h e p r o c u r e m e n t a g e n t s s h o u l d a l s o b e g i v e n t h e r e s p o n s i b i l i t y o f t r a i n i n g g o v e r n m e n t e m p l o y e e s a n d s p e c i a l i n c e n t i v e s s h o u l d b e b u i l t i n t h e i r c o n t r a c t s t o e n s u r e t h a t t r a i n i n g i s c a r r i e d o u t . G o v e r n m e n t i s l a r g e l y c a r r y i n g o u t p r o c u r e m e n t i t s e l f . T r a i n i n g i s b e i n g p i l o t e d b y t h e P P D A . R e s o u r c e s - r e c o m m e n d a t i o n s 1 4 1 . U n d e r t a k e a n e e d s a s s e s s m e n t o f p r o c u r e m e n t p r o f e s s i o n a l s a n d c o m p a r e i t w i t h a v a i l a b l e p r o c u r e m e n t c a p a c i t y i n U g a n d a . S e v e r a l n e e d s a s s e s s m e n t s b y v a r i o u s c o n s u l t a n c y t e a m s h a v e b e e n c a r r i e d o u t , a n d t h e s e n o w f o r m t h e b a s i s o f t h e P P D A c a p a c i t y b u i l d i n g s t r a t e g y 2 . D e v e l o p p r o f e s s i o n a l s t a n d a r d s f o r p r o c u r e m e n t c a d r e s , t h r o u g h a c e r t i f i c a t i o n s y s t e m T h i s h a s y e t t o b e e s t a b l i s h e d 3 . D e v e l o p t r a i n i n g p r o g r a m a n d t r a i n i n g m a t e r i a l s l e a d i n g t o c e r t i f i c a t i o n s a s c a d r e . T h e t r a i n i n g m a t e r i a l m u s t b u i l d o n t h e p r o c u r e m e n t m a n u a l d e v e l o p e d b y t h e R C T B . A t r a i n i n g p r o g r a m m e i s u n d e r d e v e l o p m e n t b y t h e P P D A . H o w e v e r , t h i s h a s n o t y e t b e e n l i n k e d t o a c e r t i f i c a t i o n m e c h a n i s m . 4 . T h e P A L M A i s c o m m e n d e d f o r p r o v i d i n g t h e s o r t o f p r o c u r e m e n t t r a i n i n g t h a t i s d e s i r e d a n d t h e G o v e r n m e n t n e e d s t o s u p p o r t t h e A s s o c i a t i o n a s m u c h a s p o s s i b l e . M o r e o r g a n i z a t i o n s p r o v i d i n g t h i s s o r t o f t r a i n i n g , s u c h a s U n i v e r s i t i e s a n d T e c h n i c a l C o l l e g e s a r e n e e d e d t o s a t i s f y t h e t r a i n i n g n e e d s o f s t a f f a t C e n t r a l a n d L o c a l G o v e r n m e n t l e v e l s . S u c h a g e n c i e s s h o u l d o p e r a t e i n a n e t w o r k t o s h a r e e x p e r i e n c e s a n d o p t i m i z e t h e b e n e f i t s o f c o o p e r a t i o n . A f t e r t h e w i t h d r a w a l o f i t s m a i n d o n o r , t h e I T C , P A L M A i s n o l o n g e r c a p a b l e o f p r o v i d i n g t r a i n i n g . H o w e v e r , o t h e r t r a i n i n g p r o v i d e r s h a v e b e e n e s t a b l i s h e d a n d w i l l l i k e l y , i n t i m e , f i l l t h i s g a p . E f f o r t s a r e b e i n g m a d e b y t h e P P D A , a n d b a c k e d b y t h e D e v e l o p m e n t P a r t n e r s , t o i n c r e a s e t r a i n i n g c a p a c i t y i n U g a n d a 5 . T h e g e n e r a l , s y s t e m a t i c a n d c o n t i n u o u s o n - t h e - j o b t r a i n i n g f o r a l l c i v i l s e r v a n t s s h o u l d b e c o n s i d e r e d a l o n g s i d e t h e s p e c i a l i z e d t r a i n i n g o f p r o c u r e m e n t e x p e r t s . T r a i n i n g , i n c l u d i n g o n - t h e - j o b t r a i n i n g i o n - g o i n g . 6 . S i n c e d e c i s i o n s o n p r o c u r e m e n t a r e m a d e b y m u l t i p l e l a y e r s o f a d m i n i s t r a t i v e o f f i c e r s , p r o c u r e m e n t t r a i n i n g n e e d s t o b e b r o a d l y c o n c e i v e d t o b e n e f i t s u c h o f f i c e r s a s w e l l . U p u n t i l n o w , t r a i n i n g h a s m a i n l y t a r g e t e d t h e n e w p r o c u r e m e n t c a d r e i n c e n t r a l g o v e r n m e n t . B u i l d i n g u p c a p a c i t y a n d e s t a b l i s h i n g t r a i n i n g p r o g r a m m e s f o r s t a f f i n v o l v e d i n l o c a l g o v e r n m e n t r e m a i n s a c h a l l e n g e 7 . G o v e r n m e n t s h o u l d i n c r e a s e a v a i l a b i l i t y o f t r a i n i n g r e s o u r c e s i n t h e c o u n t r y f o r p r o m o t i n g t h e e s t a b l i s h m e n t o f a w e l l - q u a l i f i e d a n d t r a i n e d p r o c u r e m e n t c a d r e . T h e h i g h c o s t o f t r a i n i n g a n d c a p a c i t y b u i l d i n g , w h i c h t h e p r o p o s e d r e f o r m s e n t a i l , s h o u l d b e w e i g h t e d a g a i n s t t h e b e n e f i t s o f e n h a n c e d c a p a c i t y a n d r e d u c t i o n i n c o r r u p t p r a c t i c e s . C a p a c i t y b u i l d i n g e f f o r t s h a v e s o f a r m a i n l y b e e n f i n a n c e d b y t h e i n t e r n a t i o n a l d o n o r s i n U g a n d a P E R F O R M A N C E O N B A N K - A S S I S T E D P R O J E C T S F I N D I N G S Page 11 U g a n d a 2 0 0 4 C P A R – A n n e x e s - 1 1 - J u n e 2 0 0 4 R e c o m m e n d a t i o n S t a t u s C o m m e n t s P r o c u r e m e n t a u d i t 1 5 ( a ) I m p l e m e n t i n g A g e n c i e s s h o u l d p r e p a r e u p d a t e d a n n u a l p r o c u r e m e n t p l a n s a n d u s e t h e P l a n a s a m o n i t o r i n g t o o l . T h e C P A R t e a m d i d n o t e n c o u n t e r a n y r e a l p r o c u r e m e n t p l a n s . R a t h e r t h e r e c o g n i t i o n o f t h e i m p o r t a n c e o f p l a n n i n g a n d t h e k n o w l e d g e o f w h a t p l a n n i n g e n t a i l s r e m a i n s l o w . ( b ) T o a u g m e n t i n - h o u s e p r o c u r e m e n t c a p a c i t y , P r o c u r e m e n t A g e n t s s h o u l d b e h i r e d . T h i s h a s n o t t a k e n p l a c e ( c ) A d d i t i o n a l t r a i n i n g i s r e q u i r e d f o r o f f i c i a l s d e a l i n g w i t h p r o c u r e m e n t . T h i s i s o n g o i n g a n d u n d e r t a k e n p r i m a r i l y b y t h e P P D A ( d ) T h e B a n k t h r o u g h i t s C o u n t r y O f f i c e s h o u l d t a k e a g r e a t e r r o l e i n p r o v i d i n g P r o c u r e m e n t A d v i c e t o t h e P r o j e c t s . A r e s i d e n t p r o c u r e m e n t e x p e r t n e e d s t o b e r e c r u i t e d f o r t h e U g a n d a C o u n t r y O f f i c e . A r e s i d e n t p r o c u r e m e n t s p e c i a l i s t i s i n p l a c e i n t h e W B U g a n d a C o u n t r y O f f i c e ( e ) T h e f i l i n g s y s t e m n e e d s t o b e r e v i s e d t o h a v e i n d i v i d u a l f i l e s f o r e a c h s p e c i f i c p r o c u r e m e n t a c t i o n f r o m a d v e r t i s i n g t o c o n t r a c t a w a r d a n d a d m i n i s t r a t i o n . I n d i v i d u a l p r o c u r e m e n t f i l e s a r e s t i l l n o t i n p l a c e i n t h e m a j o r i t y o f t h e p r o c u r i n g e n t i t i e s C O M M E R C I A L P R A C T I C E T r a d e p r a c t i c e s 1 6 T h e U R A s h o u l d c o n d u c t a s t u d y i n t o t h e p o s s i b i l i t i e s o f o p t i m i s i n g t h e e f f e c t o f p r e - s h i p m e n t i n s p e c t i o n . T h i s s t u d y c o u l d a m o n g o t h e r t h i n g s i n c l u d e a r e v i e w o f t h e p r e - s h i p m e n t c o n t r a c t a n d p r o c e d u r a l d e s i g n i n c l u d i n g t h e i n t r o d u c t i o n o f p r o p e r e x - p o s t r e c o n c i l i a t i o n p r o c e d u r e s . T h e s t u d y c o u l d r e v i e w t h e m e r i t s o f d e s t i n a t i o n i n s p e c t i o n f o r s o m e i m p o r t s , s a y , f r o m n e i g h b o u r i n g c o u n t r i e s . T h e p r e - s h i p m e n t p r o c e d u r e s s h o u l d ( i ) i n c r e a s e i t s f o c u s o n q u a l i t y c o n t r o l o f i m p o r t s t o c o v e r d u b i o u s i m p o r t s f r o m c e r t a i n c o u n t r i e s a n d ( i i ) c o n t i n u e u s i n g r a n d o m s e l e c t i o n p r o c e d u r e s f o r i n s p e c t i o n f o r i m p o r t s f r o m o t h e r c o u n t r i e s . A s f a r a s t h e m i s s i o n k n o w , n o e f f o r t w a s m a d e i n t h i s r e s p e c t a s p r e - s h i p m e n t i n s p e c t i o n s i n c e h a v e b e e n a b a n d o n e d . G i v e n t h e d e v e l o p m e n t o f t e c h n o l o g y ( t h e c a p a c i t y t o o p e n m o s t c o n t a i n e r s w i t h o u t l e a v i n g t r a c e s ) t h e e f f i c i e n c y o f p r e - s h i p m e n t i n s p e c t i o n c a n b e q u e s t i o n e d i n g e n e r a l e s p e c i a l l y i f a n e f f i c i e n t s y s t e m i s n o t a l r e a d y i n p l a c e . F o c u s s h o u l d i n s t e a d b e g i v e n t o t h e i m p r o v e m e n t s a n d d e v e l o p m e n t o f t h e d e s t i n a t i o n i n s p e c t i o n a s s p e c i f i e d b e l o w . Q u a l i t y c o n t r o l o f i m p o r t s i s s t i l l a n i s s u e a n d i s a n i s s u e t o b e d e a l t w i t h p r i m a r i l y b y U g a n d a N a t i o n a l B u r e a u o f S t a n d a r d s . U N B S h a s t a k e n s t e p s b u t i s a y o u n g o r g a n i s a t i o n w i t h s o m e w a y t o g o . P r i v a t e S e c t o r p r o c u r e m e n t 1 7 T h e r e i s a n e e d f o r t h e p r i v a t e s e c t o r t o d e v e l o p p r o c e d u r e s t h a t w i l l e n s u r e t h a t t h e y a c h i e v e m a x i m u m e f f i c i e n c y a n d e c o n o m y i n t h e i r p r o c u r e m e n t . T h e y c o u l d a c h i e v e t h i s j o i n t l y t h r o u g h t h e i r p r o f e s s i o n a l a s s o c i a t i o n s . P r i v a t e s e c t o r p r o c u r e m e n t i s s t i l l i n e f f i c i e n t a n d u n e c o n o m i c b u t t h e p r o b l e m f o r a m a j o r i t y o f U g a n d a n S M E s h a s d e e p e r r o o t s . T h e r e i s a n e e d f o r t r a i n i n g a n d d e v e l o p m e n t o f p r o c u r e m e n t i n S M E s b u t t h i s w i l l h a v e t o b u i l d u p o n a b a s i c d e v e l o p m e n t o f f i n a n c i a l a n d b o o k k e e p i n g s k i l l s a s w e l l a s d e v e l o p m e n t o f g o o d b u s i n e s s p r a c t i c e s . Page 12 U g a n d a 2 0 0 4 C P A R – A n n e x e s - 1 2 - J u n e 2 0 0 4 R e c o m m e n d a t i o n S t a t u s C o m m e n t s F i n a n c i a l f r a m e w o r k 1 8 B a n k c h a r g e s f o r e s t a b l i s h i n g L C s n e e d t o b e r e v i e w e d e s p e c i a l l y i n W o r l d B a n k f i n a n c e d p r o j e c t s w h e r e i r r e v o c a b l e l e t t e r s o f g u a r a n t e e a r e i s s u e d b y t h e W o r l d B a n k . T h e c o m m e r c i a l r i s k o n t h e c o m m e r c i a l b a n k i n t h e s e c a s e s i s n o n - e x i s t i n g . T h e m i s s i o n h a s n o t e s t a b l i s h e d i f t h i s w a s c a r r i e d o u t . T h e r a t e s r e v i e w e d b y t h e m i s s i o n d o n o t s e e m u n r e a s o n a b l e i n c o m p a r i s o n w i t h o t h e r c o u n t r i e s . R a t h e r i t i s a q u e s t i o n o f d e v e l o p i n g b a s i c s k i l l s w i t h i m p o r t e r s t o o v e r s e e a n d h a n d l e t h e f i n a n c i a l t r a n s a c t i o n s i n v o l v e d . Page 13 U g a n d a 2 0 0 4 C P A R – A n n e x e s - 1 3 - J u n e 2 0 0 4 A n n e x 4 : L i s t o f p e o p l e m e t d u r i n g m a i n m i s s i o n s N a m e T i t l e I n s t i t u t i o n / C o m p a n y F l o r e n c e K u t e e s a D i r e c t o r B u d g e t M i n i s t r y o f F i n a n c e , P l a n n i n g a n d E c o n o m i c D e v e l o p m e n t G . O . L u j w e r o - B w o c h A c c o u n t a n t G e n e r a l M i n i s t r y o f F i n a n c e , P l a n n i n g a n d E c o n o m i c D e v e l o p m e n t P a u l B e g g a n G o v e r n a n c e A d v i s o r D i r e c t o r a t e o f E t h i c s a n d I n t e g r i t y , O f f i c e o f t h e P r e s i d e n t D a v i d K i y i n g i N y i m b w a P r i n c i p a l P r o c u r e m e n t O f f i c e r M i n i s t r y o f E d u c a t i o n a n d S p o r t s R o b e r t H . M u w a n g a P r o j e c t C o o r d i n a t o r M i n i s t r y o f F i n a n c e , P l a n n i n g a n d E c o n o m i c D e v e l o p m e n t J o h n F . S . M u w a n g a A u d i t o r G e n e r a l A u d i t o r G e n e r a l o f t h e R e p u b l i c o f U g a n d a F r a n c i s M a g a m b e B y a r u h a n g a F i n a n c e & A d m i n i s t r a t i o n D i v i s i o n M a n a g e r M i n i s t r y o f W o r k s , H o u s i n g a n d C o m m u n i c a t i o n s / R o a d A g e n c y F o r m a t i o n U n i t ( R A F U ) P a t r i c k M u h u m u z a A d m i n i s t r a t i v e O f f i c e r M i n i s t r y o f W o r k s , H o u s i n g a n d C o m m u n i c a t i o n s / R o a d A g e n c y F o r m a t i o n U n i t ( R A F U ) T . S i l v e r K a n g a h o D i r e c t o r o f O p e r a t i o n s I n s p e c t o r a t e o f G o v e r n m e n t M i n i s t r y o f L o c a l G o v e r n m e n t A d a h M u w a n g a C o m m i s s i o n e r M i n i s t r y o f P u b l i c S e r v i c e P a u l B o g e r e A s s i s t a n t C o m m i s s i o n e r M i n i s t r y o f P u b l i c S e r v i c e J u s t i n Z a k e D e p u t y C o m m i s s i o n e r G e n e r a l R e v e n u e U g a n d a R e v e n u e A u t h o r i t y J o h n G e n d a W a l a l a A g . C o m m i s s i o n e r F i n a n c e U g a n d a R e v e n u e A u t h o r i t y E d g a r A g a b a A g . E x e c u t i v e D i r e c t o r P u b l i c P r o c u r e m e n t a n d D i s p o s a l o f P u b l i c A s s e t s A u t h o r i t y M i l t o n G o d d i e T u m u t e g y e r e i z e D i r e c t o r , T r a i n i n g & C a p a c i t y B u i l d i n g P u b l i c P r o c u r e m e n t a n d D i s p o s a l o f P u b l i c A s s e t s A u t h o r i t y M r s M a r y P . S o z i ( A C C A ) D i r e c t o r F i n a n c e a n d A d m i n i s t r a t i o n P u b l i c P r o c u r e m e n t a n d D i s p o s a l o f P u b l i c A s s e t s A u t h o r i t y P a t r i c k T s e k i t o l e k o H e a d S t a n d a r d s D i v i s i o n U g a n d a N a t i o n a l B u r e a u o f S t a n d a r d s J o h n O k u m u S t a n d a r s O f f i c e r s / S t a n d a r d s D e v e l o p m e n t E n g i n e e r U g a n d a N a t i o n a l B u r e a u o f S t a n d a r d s A b d u l K a s u l e D e p u t y S e c r e t a r y G e n e r a l U g a n d a N a t i o n a l C h a m b e r o f C o m m e r c e a n d I n d u s t r y R o l f V e r h e u l F i n a n c i a l P o l i c y A d v i s o r D u t c h M i n i s t r y o f F o r e i g n A f f a i r s / P o l i c y A d v i c e D i v i s i o n P e t e r S c h u u r m a n n D u t c h M i n i s t r y o f F o r e i g n A f f a i r s / S u s t a i n a b l e E c o n o m i c D e v e l o p m e n t D i r e c t i o n W a r n e r t e n K a t e F i r s t S e c r e t a r y , M a c r o e c o n o m i s t T h e R o y a l D u t c h E m b a s s y , K a m p a l a M s A s t r i d T h y g e s e n C h i e f T e c h n i c a l A d v i s o r U N D P / C a p a c i t y B u i l d i n g P r o j e c t , P u b l i c P r o c u r e m e n t A u t h o r i t y J o s e p h B a l i d a w w a P a r t n e r P r i c e W a t e r h o u s e C o o p e r s Page 14 U g a n d a 2 0 0 4 C P A R – A n n e x e s - 1 4 - J u n e 2 0 0 4 N a m e T i t l e I n s t i t u t i o n / C o m p a n y B e n M u h i g o A u d i t o r P r i c e W a t e r h o u s e C o o p e r s B i t a r a b e h o K . J o h n s o n C h i e f A d m i n i s t r a t i v e O f f i c e r B u s h e n y i L o c a l G o v e r n m e n t , B u s h e n y i D a v i s A m p w e r a D i s t r i c t P r o m o t i o n O f f i c e r B u s h e n y i D i s t r i c t P r i v a t e S e c t o r / P r o m o t i o n C e n t r e , B u s h n e y i D a v i d B a s h a k a a r a C h i e f T o w n s h i p O f f i c e r M b a r a r a M u n i c i p a l C o u n c i l M u k o t a n i R u g y e n d o S e n i o r M e d i a a n d C o m m u n i c a t i o n s A d v i s o r U g a n d a D e b t N e t w o r k L u k w a g o P o l i c y U g a n d a D e b t N e t w o r k R o b e r t K . R u t a a g i G e n e r a l M a n a g e r N a t i o n a l M e d i c a l S t o r e s M s R o s e N a i k o b a H e a d F i n a n c e & A c c o u n t s N a t i o n a l M e d i c a l S t o r e s N i c h o l a s K y a t e r e k e r a P r o c u r e m e n t O f f i c e r N a t i o n a l M e d i c a l S t o r e s M s G e r t r u d e R o s e G a m w e r a L e g a l O f f i c e r , E D F P r o g r a m m e C o - o r d i n a t o r U L A A / U A A U J o i n t S e c r e t a r i a t M s L i z N k o n g i C o m m u n i c a t i o n O f f i c e r U L A A / U A A U J o i n t S e c r e t a r i a t A l f r e d O g w a n g S t a t i c i a n / E c o n o m i s t U L A A / U A A U J o i n t S e c r e t a r i a t I r e n a e u s W . B a r a s a P a r t n e r M u l t i p l a n C o n s u l t i n g E n g i n e e r s K i y i n g i D a v i d N y i m b w a P r e s i d e n t ( M C I P S , M I L T ) T h e C h a r t e r e d I n s t i t u t e o f P u r c h a s i n g & S u p p l y , U g a n d a C h a p t e r C h a r l e s O h w - U b b ( O w o r ) P r e s i d e n t P u r c h a s i n g A n d S u p p l y M a n a g e m e n t A s s o c i a t i o n ( P A L M A ) P a o l o d e R e n z i o R e s e a r c h F e l l o w O v e r s e a s D e v e l o p m e n t I n s t i t u t e / C e n t r e f o r A i d a n d P u b l i c E x p e n d i t u r e / P o v e r t y a n d P u b l i c P o l i c y G r o u p , L o n d o n , U K H e r b e r t T u m w e s i g y e M a n a g i n g D i r e c t o r V i c t o r i a I n s G l a s s L t d . / A g e n t s o f K a m p a l a C i t y C o u n c i l C e n t r a l D i v i s i o n ( F o r L i c e n s i n g a n d C o l l e c t i o n o f L i c e n c e f e e s ) , B . M . G a g r a n i F i n a n c i a l C o n t r o l l e r T o r o r o C e m e n t I n d L t d . F r e d F e s t u s K . M a t o v u M a n a g i n g D i r e c t o r K a m p a l u - L o n g m a n M s C a r o l i n e H e a l e y M a n a g i n g D i r e c t o r C r o w n A g e n t s U g a n d a L t d . D a u d i N d i w a l a n a D i r e c t o r o f M a r k e t i n g U g a n d a M a n u f a c t u r e r s A s s o c i a t i o n M s M o n i c a A . N t e g e P r o c u r e m e n t / C a p e x O f f i c e r S t a n b i c B a n k K y a z z a M u k a s a P a t r i c k M a n a g e r , F i n a n c e a n d A d m i n i s t r a t i o n U g a n d a M a n u f a c t u r e r s A s s o c i a t i o n G o d f r e y B . Z a r i b w e n d e C h a i r m a n U g a n d a N a t i o n a l A s s o c i a t i o n o f B u i l d i n g & C i v i l E n g i n e e r i n g C o n t r a c t o r s U N A B C E C P a u l M w i r u m u b i N a t i o n a l T r e a s u r e r U g a n d a N a t i o n a l A s s o c i a t i o n o f B u i l d i n g & C i v i l E n g i n e e r i n g C o n t r a c t o r s U N A B C E C W i n s t o n M a n z i T r a i n i n g M a n a g e r A m e r i c a n P r o c u r e m e n t C o m p a n y I n c . ( A M P R O C ) D r . P a u l S a g a l a D i r e c t o r P r o m e C o n s u l t a n t s L t d . Page 15 U g a n d a 2 0 0 4 C P A R – A n n e x e s - 1 5 - J u n e 2 0 0 4 N a m e T i t l e I n s t i t u t i o n / C o m p a n y P r o f . S a m T u l y a - M u h i k a D i r e c t o r I n t e r n a t i o n a l D e v e l o p m e n t C o n s u l t a n t s L t d . J o e l K . K a t e r e g g a A r c h i t e c t , M a n a g i n g D i r e c t o r / c o o r d i n a t o r E C O - S h e l t e r & E n v i r o n m e n t a l C o n s u l t a n t s N i m r o d W a n i a l a E x e c u t i v e D i r e c t o r P r i v a t e S e c t o r F o u n d a t i o n U g a n d a E n g . E . J . B y a n d a l a C i t y E n g i n e e r & S u r v e y o r C i t y C o u n c i l o f K a m p a l a M s J o s e p h i n e K a r u n g o n j o ( * * ) C i t y A d v o c a t e C i t y C o u n c i l o f K a m p a l a F r e d F e s t u s M a t o u n M a n a g i n g D i r e c t o r K a m a l u L i m i t e d N t a l e L o u i s L o n a c o L t d . T u r y a m u s u m a A p o l l o P u r c h a s i n g O f f i c e r K a m p a l a C i t y C o u n c i l D e n n i s K a r u h a n g a S e n i o r A / C M s J u s t i n e K a s u l e A g S e c r K a m p a l a D i s t r i c t T e n d e r B o a r d M u w o n g e - K e w a s a A g . D e f . T o w n C l e r k C i t y C o u n c i l o f K a m p a l a H e r b e r t T u m m e s i g y e M a n a g i n g D i r e c t o r V i c t o r i a I n s g l a s s L t d . K a n s i n e E l d a r d P r o j e c t M a n a g e r M u l t i p l e x P a t r i c k B a r a s a S e n i o r I n t e r n a l A u d i t o r T o r o r o D i s t r i c t A d m i n i s t r a t i o n A d o n g o O w u r a A g . D W D T o r o r o D i s t r i c t A d m i n i s t r a t i o n O b o l h S i w e s t e r ( O b o t h S y l v e s t e r ) C h i e f A d m i n i s t r a t i v e O f f i c e r T o r o r o D i s t r i c t A d m i n i s t r a t i o n D u n c a n B u j i r w a P e r m a n e n t S e c r e t a r y P u b l i c S e r v i c e C o m m i s s i o n W a f u l a O g u t t u M e m b e r T r a n s p a r e n c y I n t e r n a t i o n a l ( U g a n d a ) O l o b o M a r t i n P e r m a n e n t S e c r e t a r y I n s p e c t o r a t e G e n e r a l o f G o v e r n m e n t R i c h a r d O g a l M e m b e r , C o n t r a c t s C o m m i t t e e I n s p e c t o r a t e G e n e r a l o f G o v e r n m e n t J a s p e r T u m u h i m b i s e I n s p e c t o r a t e G e n e r a l o f G o v e r n m e n t R o b e r t B u k e n y a S e n i o r A s s i s t a n t S e c r e t a r y I n s p e c t o r a t e G e n e r a l o f G o v e r n m e n t M a t h i a s T u m w e s i g y e D i r e c t o r o f E d u c a t i o n a n d P r e v e n t i o n o f C o r r u p t i o n I n s p e c t o r a t e G e n e r a l o f G o v e r n m e n t G a s h i r a b a k e C h r i s t o p h e r C o m m i s s i o n e r M i n i s t r y o f J u s t i c e a n d C o n s t i t u t i o n a l A f f a i r s L a w r e n c e W a d a d a D e p u t y C h i e f A d m i n i s t r a t i v e O f f i c e r N a k a s o n g o l a D i s t r i c t A d m i n i s t r a t i o n J o n a t h a n K i s i t u P r i n c i p a l P r o c u r e m e n t O f f i c e r M i n i s t r y o f H e a l t h T u s h a b e H e a d , P r o c u r e m e n t U n i t M a k e r e r e U n i v e r s i t y E n g i n e e r P a t r i c k T u w e s i g y e H e a d , P r o c u r e m e n t U n i t N a t i o n a l W a t e r a n d S e w e r a g e C o r p o r a t i o n , J e a n - S a m m y A u p a l C h i e f F i n a n c e O f f i c e r N a k a s o n g o l a D i s t r i c t F r a n c i s O p e b u n I n t e r n a l A u d i t o r N a k a s o n g o l a D i s t r i c t W i l l i a m S s e k a n d i A s s . S u p p l i e s O f f i c e r N a k a s o n g o l a D i s t r i c t Page 16 U g a n d a 2 0 0 4 C P A R – A n n e x e s - 1 6 - J u n e 2 0 0 4 N a m e T i t l e I n s t i t u t i o n / C o m p a n y D r . A r t h u r R . M u g i s h a E x e c u t i v e D i r e c t o r U g a n d a W i l d l i f e A u t h o r i t y B i s e r e k o K y o m u h e n d o A g . R e g i s t r a r G e n e r a l M i n i s t r y o f J u s t i c e a n d C o n s t i t u t i o n a l A f f a i r s S . H . K i s u k i r o P r i n c i p a l A s s i s t a n t S e c r e t a r y U g a n d a L a w r e f o r m C o m m i s s i o n P . E l i m u E l y e t u P r i n c i p a l C o m m e r c i a l O f f i c e r M i n i s t r y o f T o u r i s m , T r a d e & I n d u s t r y S i l v e r O j a k o l P r i n c i p a l C o m m e r c i a l O f f i c e r M i n i s t r y o f T o u r i s m , T r a d e & I n d u s t r y J o s e p h K y a m a n y w a F i n a n c e & A d m i n i s t r a t i o n M a n a g e r N a t i o n a l A g r i c u l t u r a l A d v i s o r y S e r v i c e s , N a a d s S e c r e t a r i a t C o l . B e n o n B . B i r a a r o A s s i s t a n t C h i e f o f S t a f f U g a n d a P e o p l e ’ s D e f e n c e F o r c e s N a o m e K i b a a j u U n d e r S e c r e t a r y / L o g i s t i c s M i n i s t r y o f D e f e n c e P e t e r S s e b u g w a w o A s s i s t a n t I n t e r n a l A u d i t o r N a t i o n a l A g r i c u l t u r a l A d v i s o r y S e r v i c e s , N a a d s S e c r e t a r i a t Page 17 Uganda 2004 CPAR – Annexes -17- June 2004 ANNEX 5 - Checklist comparing National Competitive Bidding Procedures and World Bank Policy Yes No Bank Policy 1. Are there eligibility restrictions based on nationality of bidder and/or origin of goods (other than primary boycotts)? X Not allowed 2. Are there primary boycotts which are established by law? X Only primary boycotts are acceptable 3. Are bidding opportunities advertised in the local press? X Required 4. Are prospective bidders allowed at least 30 days for bid preparation (except for commodities/small goods contracts)? X (22) Required 5. Are contractors/suppliers prequalified for large/specialized contracts? X Required 6. Are minimum experience, technical and financial requirements (for pre- or post-qualification) explicitly stated in the documents? X Required 7. Registration should not be used as a substitute for advertisement when open competition is required. However, when advertising for civil works, borrowers could indicate the required minimum category of contractor specified in the registration system. X Required 8. Is an invitation to prequalify advertised for each procurement involving large or complex potential contracts? X Required 9. Are joint ventures with local firms required for foreign firms’ eligibility? X Not allowed 10. Are joint venture partners jointly and severally liable? X Required 11. Are there set limitations to the number of firms who can bid for a contract? X Not allowed 12. Are parastatals allowed to bid? X Acceptable only if they (i) are financially autonomous, (ii) operate under commercial law, and (iii) are independent from borrower and its purchasing/contracting authority. 13. Are bidders required to register with a local or federal authority as a prior condition for bidding? X Should be discouraged. Acceptable only if registration criteria, process and cost reasonable/efficient and qualified foreign firms are not precluded from competing. 14. Are extensions to bid validity allowed? X Acceptable only if justified by exceptional circumstances. Page 18 Uganda 2004 CPAR – Annexes -18- June 2004 Yes No Bank Policy 15. Are there restrictions on the means of delivery of bids? X Not allowed, except when bidders have to submit physical samples. Then they can be required to deliver bids by mail, by courier, by hand, etc. 16. Is preference given to suppliers or contractors based on region or locality of registration, small size, ethnic ownership, etc.? X Not allowed 17. Are there restrictions on sources of labour and material? X Not allowed, except for unskilled labour, if available locally. 18. Is public bid opening required? Does it occur immediately or closely following the bid submission deadline? X Required 19. Is a “two envelope” bid opening procedure permitted for procurement of goods or works? 4 X Should be discouraged. Allowed only if (i) domestic law precludes use of one envelope and (ii) provided adequate safeguards against retaining second envelope unopened are incorporated in the two envelope procedures and effective bid protest mechanisms are already in place for the due processing of bid complaints. 20. Is automatic rebidding required if too few bids are received? X Acceptable, provided all responsive bidders are allowed to bid, the process is efficient and no serious delays result. 21. Is “bracketing” used in bid evaluations? 5 Are bid evaluation criteria other than price allowed? X X Not allowed Only if quantified in monetary terms 22. Is award made to lowest evaluated qualified and responsive bidder? X Required 4 All technical envelopes are opened first and, after review, price envelopes of all or only qualified/responsive bids are opened in the second round. 5 Rejection of bids outside a range or “bracket” of bid values. Page 19 Uganda 2004 CPAR – Annexes -19- June 2004 Yes No Bank Policy 23. Are price negotiations conducted with “winning” bidders prior to contract signature? X Not allowed, except where the bid price is substantially above market or budget levels and then only if negotiations are carried out to try to reach a satisfactory contract through reduction in scope and/or reallocation of risk and responsibility which can be reflected in a reduction in Contract Price. (See Guidelines para 2.60) 24. Are price adjustment provisions generally used? X Not required, but recommended for works contracts of one year or more in duration when domestic inflation rate is high. 25. Are the terms and conditions used in goods and works procurement generally appropriate for the size and nature of contract intended? X Required (to be acceptable they should be balanced, reasonable, and clearly address the most important issues that lead to problems during performance, e.g. risk allocation, payment, inspection, completion/acceptance, insurance, warrantees, changes, contract remedies, force majeure, governing law, termination, etc.) 26. Are contract scope/conditions modified during implementation? X Acceptable, but the Bank’s approval is required for changes in those contracts that were subject to prior review under the Loan Agreement. Page 20 Uganda 2004 CPAR – Annexes -20- June 2004 ANNEX 6 - Questionnaire on Public Procurement System Section A - Legal Framework GENERAL FEATURES 1. Identify predominant legal system (i.e. Common/Civil Law; Socialist; other) Common Law 2. Identify form of government (i.e. federal or centralized) Uganda is a republic with centralized government 3. Does the Constitution (if there is one) contain any provision directly bearing on public sector procurement? (If so, describe) No 4. Is the country a signatory (or planning to become one) to the Agreement on Government Procurement of the World Trade Organization? No 5. Does the basic contract law contain any provision directly bearing on public sector procurement? (If so, describe) No 6. Is there a separate body of law which regulates public sector procurement, or is it governed by regulations issued under an organic finance act? Yes, the Public Procurement Act (2003) with supporting regulations for central government procurement covers all public procurement. 7. Is the system clear, comprehensive and consistent? Does it cover all essential aspects with no unduly complicated, unnecessary, conflicting or outdated regulations? Are rules found in various distinct sources or within a well coordinated legal framework? Yes, the legal framework is consistent but still lacking local government procurement regulations. 8. Is the hierarchy of the sources of procurement rules well established? Yes, with the enactment of the new Procurement Act in 2003 previous uncertainties have been removed. 9. What is the scope of coverage for the procurement legal framework? Does it cover sub- national government? Does it include coverage of all government procurement including security and military procurement? All public procurement is covered by the Act, with the exception of procurement by parastatals not receiving “public funds” and procurement of a sensitive nature by the military and security forces. 10. Are there separate procurement rules established for parastatals? Describe. No 11. Is the procurement function decentralized? If so, describe basic structure, name the main decentralized procuring entities and indicate their role, rights, and responsibilities. Yes, the Public Procurement and Disposal Authority only maintains oversight responsibilities while all procurement operations are the responsibility of the contracts committees in each procuring entity. Page 21 Uganda 2004 CPAR – Annexes -21- June 2004 12. Is there an entity(ies) with oversight responsibilities for procurement functions throughout public administration (e.g., with primary regulatory powers, responsible for harmonization of rules and monitoring of compliance)? If so, identify and describe responsibilities and structure. Yes, the Public Procurement and Disposal Authority is the central policy and monitoring body. 13. Is there a Central Tender Board or a similar institution? What are its duties and responsibilities? No 14. Does the system allow/facilitate the introduction of new and innovative techniques and contracting practices without compromising basic principles? Yes, the basic sound principles of proper procurement are enshrined in the Procurement Act. While the CPAR has identified some weaknesses in the Regulations, there is adequate room for adaptation of new techniques within the overall legal framework. 15. Are there rules/procedures regarding bidder suspension and debarment? Yes, contracts committees can debar bidders based on previous performance/irregularities. 16. Is the country a member of regional trade/customs agreements? (If so, specify) 17. Are there primary/secondary boycotts? (Specify) No 18. Are there provisions regarding preferences for particular categories of suppliers of goods, works and services? (Specify) Yes, but only in local government procurement, where preference can be given to local works contractors. 19. Are there arbitration rules applicable to procurement contracts? Are they consistent with international rules such as those embodied in the UNCITRAL Model Law on Arbitration? (Highlight major differences) Standard terms for public contracts often contain arbitration clauses, but without such specific agreement public contracts are subject to the legal procedures of the courts. An Arbitration Act based on the UNCITRAL Model Law is in place. 20. Are there laws or regulations governing policies and procedures for awarding concessions/contracts for private sector provision/operation of power, water or other infrastructure facilities? (BOO, BOT, etc.) Do any general conditions of contract apply as a matter of law or regulation? No, the Procurement Act applies. BASIS OF TRANSPARENCY 1. Is there a legal or regulatory requirement for public disclosure of procurement legal texts? Yes, legal texts are published in the Government Gazette. 2. Are there mandatory requirements for maintaining written records of procurement? To what extent are they available to the general public? Yes, a comprehensive “procurement record” is mandatory according to the Procurement Act. The content of the protocol is not available to the public as there is no freedom of information act. Page 22 Uganda 2004 CPAR – Annexes -22- June 2004 3. Are requirements for advertisement of contracting opportunities adequate? Does the country have a national gazette (or other similar publication) published in a timely fashion? Is it easily available to the general public? Advertisement is only through newspapers, notice boards and in a few cases web-sites. The Government Gazette does not carry advertisements of procurement opportunities. For large contracts, advertisement in the newspapers is adequate, but the country does not have a centralized media where all procurement opportunities can be accessed. 4. Are requirements regarding public bid opening, if any, appropriate? Yes, the Procurement Act and Regulations contains adequate rules. 5. Are negotiations after bid opening or award selection allowed? Do the rules on negotiated procurement, if any, provide the basis for a fair and transparent process? Pre- contract negotiation is allowed as long as they do not “substantially” change the terms of contract. There are no rules on how such negotiation should proceed. 6. Are conditions for use of various procurement methods clearly established? Is there an explicit requirement that open competitive bidding is the preferred or default method? Yes, competitive bidding is the preferred method, but through the use of registration lists and illegal splitting of tenders, the majority of tenders are restricted to bidders on shortlists 7. Is there a requirement for public notice of contract awards? Yes, on the notice board of the procuring entity. 8. Are there clear and appropriate requirements for bid and contract securities? Yes, in the Standard Terms of Contract published as part of the Bidding Documents for Works, by the PPDA. Otherwise no. 9. Are qualification requirements for bidders, if any, fair and appropriate for the purpose of the contract? Comprehensive and adequate qualification requirements are contained in the standard Bidding Documents for Works, published by the PPDA. 10. Do requirements for bid examination and evaluation provide the basis for a rational and fair process? Yes 11. Are summaries of information about public procurement published (e.g. number of bids received, number of contracts awarded, and names of successful bidders)? If so, describe scope and frequency. No 12. Does government hold regular meetings with the business community to discuss public procurement issues? No 13. Is there a conflict of interest policy in effect? (If so, describe its essential features). Yes, the Anti-Corruption legislation specifically outlaws decisions made by public employees in conflict of interest. Page 23 Uganda 2004 CPAR – Annexes -23- June 2004 14. Are there laws on bribery of government officials and are they enforced? Do government bidding documents and contracts contain anti-bribery and anti-corruption conditions? Yes, the Prevention of Corruption Act contains anti-bribery provisions, and these are enforced by the IGG to the extent that resources and expertise allows. BASIS OF ACCOUNTABILITY 1. Are government employees expected to follow a published code of ethics? If so, describe its basic features. High level public employees and politicians are required to abide by the Leadership Code, which among other features includes provisions on declaration of assets. Also, the PPDAA, Fifth Schedule contains a Code of Ethical Conduct in Business, which applies to public employees involved in tendering processes. 2. Is there an accessible and secure process for bidders to report bribes by others and solicitation/extortion of bribes by government officials? Instances of bribery or attempts hereto can be reported to the IGG, which also has regional offices, which are easily accessible. 3. Do bidders have adequate access to administrative or judicial review/appeal? No, even though the PPDA is the designated complaints authority, it does not constitute a credible avenue of complaints. Beyond the PPDA, aggrieved bidders will have to take their complaint to the Court System, however, this is a lengthy and costly process, and is therefore not perceived as a feasible option. Also, the judiciary is known to be one of the most corrupt sectors, which in practice also prevents bidders from taking their complaints to this level. 4. Are there measures/initiatives to curb/control corruption, e.g. anti-corruption statutes and/or bodies, whistle-blower statutes, comprehensive reforms of the civil service/judiciary, regional initiatives, provisions in the criminal law, anti-bribery provisions, etc.? (If so, describe) A whole body of anti-corruption legislation is pending enactment in Parliament, including the Prevention of Corruption Act, the Whistleblower and Qui Tam Act, and the Freedom of Information Act. Section B - Trade/Customs Practices 1. Are foreign firms engaged in trade with the country required to use a local agent? No 2. Is there evidence of any trade malpractice affecting public sector procurement? Yes there are accounts of over and under invoicing and bribery in trade practices leading to inefficiency and higher prices for public procuring entities. Page 24 Uganda 2004 CPAR – Annexes -24- June 2004 3. Is inspection conducted according to generally established procedures? Are there indications that the inspection is not effective? Inspection in terms of quality control is very limited. URA Customs inspections are conducted according to procedures but there are substantial anecdotal evidence suggesting flaws in the practices. 4. Do preshipment/post-shipment inspection, if any, unduly increase the procurement lead time? No pre-shipment system is in place 5. Is counter-trade used? Barter agreements? For what percentage of the country’s total trade? No 6. Are the ICC’s INCOTERMS generally understood and commonly used in the Country? Are other trade terms used? INCOTERMS are generally used but poorly understood by importers, clearing agents and to some extent customs 7. Are licensing and customs procedures generally transparent and efficient? Procedures are transparent, but there is a need to communicate these better and to educate clearing agents and importers in the procedures. There are complaints from importers and clearing agent on delays. 8. Are “facilitation” payments normally necessary to clear goods through customs, obtain work permits for expatriate labour, process monthly payment certificates/invoices? Yes anecdotal evidence suggests that this is common. However, some payments will not reach customs but stay with the clearing agent that has convinced the importer of the necessity of the payments. 9. Are staff familiar with shipping and other trade documents? With documentary credits? Yes. Section C - Financial/Budgetary Framework 1. Are banks capable of issuing Letters of Credit? 2. Are banks generally creditworthy? 3. Can bid, performance and advance payment securities be obtained easily? What formats are permitted? Bank guarantees? Bonds? Other? Provide details on cost, if available. 4. Are the requirements for issuance of bid, performance, and other securities to suppliers/contractors reasonable? 5. Do suppliers/contractors have reasonable access to credit? Page 25 Uganda 2004 CPAR – Annexes -25- June 2004 6. Do implementing agencies obtain budgetary authorizations for contract payments falling due beyond the current financial year? 7. Are major projects or programs clearly identified in government budget estimates? 8. What procedures are followed to ensure the procuring entity obtains budget authorization prior to inviting bids? 9. Do procuring entities reliably receive the monies authorized? Or is the budget subject to revision during the year by a restrictive cash release system? Section D - Public Sector Procurement of Goods/Works GENERAL RISK ASSESSMENT 1. Is staff working in public sector procurement area held in high regard? Up until the enactment of the PPDAA, the procurement function was generally not held in high regard, and in most public entities procurement was carried out by stores/supplies officer with little training and experience in actual public procurement. This has changed somewhat with the PPDAA, which established the procurement cadre in the civil service system. After initial problems with the deployment of the procurement professionals in the central government entities (lack of office spaces, lack of telephone lines, files, etc), the majority of the procurement officers now seems to be in place and carrying out their functions. 2. Are pay levels for staff working on procurement comparable to that for other public and private sector technical specialists? 3. Does a code of ethics exist that staff working in procurement are expected to follow? The PPDAA contains a Code of Ethical Conduct in Business, which also applies to procurement staff. 4. Are the authorities relating to procurement clearly delegated to the entities carrying out the process? Are the applicable procedures clearly defined? Yes Page 26 Uganda 2004 CPAR – Annexes -26- June 2004 5. Are procurement decisions overridden by higher governmental agencies? If so, by whom? To what degree is the procurement decision-making process independent and based on transparent criteria? There are reports of political influence on the procurement both at central government level and especially at local government level. At local government level, councillors are often directly involved in the procurement process 6. Does the highest level of government encourage/support/enforce compliance with existing procurement regulations? Are violations investigated and procurement/other responsible officials held accountable? The procurement reform has all along been high on the GoU agenda. However, a major problem is the actual enforcement of the procurement rules. At present, the IGG is the main authority investigating violations of the procurement process, though this is in fact part of the PPDA’s mandate and functions. There are several cases/examples of high level corruption in procurement and no convictions. Thus, a great problem is the sense of impunity seemingly flourishing among high level officials and politicians, which in turn sustains the lack of trust in the public procurement system among ordinary citizens and foreign investors. 7. Are there indications suggesting price-fixing in open bidding? Cartel formation has been identified as one of the major issues by the CPAR team. Until Uganda establishes a competition framework, including a competition body, this problem will remain an issue. Notably, lack of a proper competition framework also poses a major deterrent to foreign investment. ORGANIZATION 1. Is appropriate information on procurement adequately disseminated (i.e. procurement staff are aware of updated rules and thresholds, and other issues relevant to their assigned responsibilities)? The PPDA is implementing a comprehensive programme of training and awareness raising on the newly enacted legal framework. However, up until now this has mainly targeted central procurement staff at central government level. It is planned that the PPDAA together with the MoLG will extend the training and awareness activities towards local government level 2. Are the procurement and supply management functions clearly distinguished? Yes – at central government level. At local government level, the procurement cadre still have to be established (by the MPS) 3. Is contracting authority reasonably delegated (i.e. there are no unnecessary levels of approvals or cumbersome procedures)? Yes 4. Are the thresholds for contracting authorities regularly updated? No Page 27 Uganda 2004 CPAR – Annexes -27- June 2004 5. Do procuring entities have internal quality and control mechanisms? Are they regularly audited? Quality control and auditing remains a problem. Very limited procurement audits have been carried out by the PPDA (which commissioned PWC). 6. Is procurement staff experienced in international procurement? No, generally not 7. Do adequate formal and on-the-job training programs exist for entry- and higher-level staff that contribute to proper professional career development? Does knowledge of procurement lead to career advancement? These are measures, which still have to be installed 8. Are there additional training resources in the country that are currently utilized or that could be utilized to complement Government/donor-administered programs (e.g. universities and private institutions)? A few private training institutions exist, however, most of these are not fully conversant with public procurement (focus remains on private sector procurement). The Dutch Embassy in collaboration with the PPDA is currently trying to establish a capacity building program for two Uganda universities. This will include twinning with selected Dutch institutions. 9. Did previous training programs (if any) lead to an obvious improvement in the quality/productivity of procurement work? The training program carried out by the PPDA with support from UNDP has contributed to the improvement of procurement work. 10. Does procurement staff have adequate project/contract management capabilities? No, not generally 11. Are procurement agents used? Under what circumstances? How are they selected? Describe normal basis for compensation and contract duration Yes, often for donor funded tenders and for some government funded complex tenders. Procurement agents are selected according to the rules on selection of consultants on a unit fee basis, typically with a contract duration corresponding with the planned duration of the specific tender to be performed. 12. Is procurement monitoring and administration computerized? How adequately do procurement entities track the key steps in the procurement process and collect appropriate project-related cost and schedule information? Computerized monitoring is very rare in government funded projects. Generally, recording and filing of information is of low standard. PROCUREMENT PLANNING 1. Are project implementation units adequately staffed with trained procurement, planning, scheduling, expediting and cost estimating personnel? No, there is a chronic shortage of adequately trained staff with knowledge of the new legal framework. 2. Is overall planning for complex goods, works and other contracts done in sufficient detail to produce realistic project definition, achievable completion schedules, and accurate cost estimates? No, poor quality in all planning stages is a major problem. Page 28 Uganda 2004 CPAR – Annexes -28- June 2004 3. Is the early technical and financial planning well coordinated so that projects are fully funded when work needs to begin, based on accurate cost estimates? No, lack of accurate information affects quality of planning. 4. Are appropriate methodologies used to plan multiple inter-related procurement activities on large projects (e.g. the critical path method)? Rarely for government funded and run projects. 5. Are project components appropriately packaged for procurement purposes? No, often the packaging does not take into account the structure of the market and the available bidders. 6. Are completion schedules generally met for goods, works and consultant services contracts? If not, what is the major cause for slippage? Is sufficient time generally allowed for external reviews/clearances? No. Delays are often caused by poor planning and specifications. Delays caused by external reviews/clearance are not reported. 7. Do procurement units regularly conduct market surveys to update their knowledge of prevailing prices for goods and works? Generally not, even though some do. 8. Are procedures and methodologies for planning procurement of recurrent items (i.e. inventory control, forecasting of future requirements, classification, coding, accounting/financial management, spare parts management, and delivery systems) adequate? These tasks are handled by Stores Managers and Supplies Managers, but general procurement planning is perceived to be of low quality. DOCUMENT PREPARATION 1. Do standard documents exist for goods, works and other types of contract? List. Are other international contract formats used? If so, identify. No only for works, The PPDA has issued draft Bidding Documents for Works in 2003. Even though they are drafts they have been issued and are in use. These standard documents are based on World Bank standard documents and until they are disseminated, a number of other standard documents based largely on donor documents are in use. 2. Are these documents, if any, readily adaptable to specific contract situations (i.e. by modifications made through a Bid Data Sheet, Special Conditions of Contract or similar)? Yes, the Bidding Documents for Works allow for adaptation. 3. Are there separate documents for international and national competitive bidding not financed by the Bank? No 4. Do Instructions to Bidders (ITBs) contain all information necessary to prepare responsive bids and clearly understand evaluation criteria and their method of application? No Page 29 Uganda 2004 CPAR – Annexes -29- June 2004 5. Do they contain other necessary information, such as eligibility requirements, basis of bid, language and currency of bids, common currency for purposes of evaluation, source and date of the exchange rate, etc.? Are sample forms and other appropriate sections of the documents provided? No 6. Are bidders required to provide bid security in an appropriate amount as a condition of responsiveness of their bid? Yes, if the procuring entity desires it. 7. Is pre- or post-qualification provided for? Yes, both options are available. 8. Are qualification criteria appropriate and clearly described? Yes, but only in the draft standard documents, not in the Act or Regulations. 9. Are conditions of contract equitable? Do they provide adequate coverage for most important commercial and legal issues (for the method of procurement, size, nature and type of contract used) and provide adequate protection to the Government, without putting undue risk on bidders? Yes, the standard terms in the draft standard documents appear equitable. 10. Are standard purchase orders used for shopping? Yes PREQUALIFICATION 1. Is prequalification carried out when appropriate? What types of contracts is it used for? Works? Goods? Other? No, even though the Act provides for prequalification and requires it when appropriate, often prequalification is not carried out. 2. Is the prequalification process fair and transparent? Are decisions made promptly? Are foreign firms allowed to apply? Yes, the described procedures are adequate. 3. Are standard prequalification documents used? Do they clearly and completely describe all the prerequisites for submitting responsive applications for prequalification? Is financial information routinely requested and critically evaluated to assess an applicant’s financial capacity to perform? Only the standard prequalification documents included in the draft Bidding Document for Works exist. Entities lack the access to information the adequately assess any financial information. 4. Do procuring entities verify prior to contract award if a successful bidder continues to meet prequalification requirements? No 5. Are suppliers required to have a local agent in order to qualify to bid for goods or services? No Page 30 Uganda 2004 CPAR – Annexes -30- June 2004 6. Do procuring entities maintain updated lists of qualified suppliers and contractors and updated market information on commonly procured goods, including spares and consumables? Is supplier and contractor performance routinely evaluated and are any standing lists of prequalified suppliers and contractors updated and modified based on this information. Can newcomers readily apply and be qualified? The majority of procuring entities maintain internal registration lists. There are few common rules for the administration procedures of such lists, especially on the formation short-lists from the registration lists. The quality of the administration and information in this list vary, and as a consequence hereof, the bidders can expect very different levels of treatment from different procuring entities. 7. Is the procedure for registration of domestic contractors fair, providing timely access to the bidding process to all potentially qualified bidders? Are bidders allowed to register by mail and, if the conditions in the country allow, through the internet? Is registration permanently opened to bidders for registration or update, is there a deadline imposed in relation to a specific bidding process? Is the time taken for registration reasonable? There are no requirements for registration. Since a large proportion of the procurement volume is carried out through short lists developed from the individual registration lists of the entities, in practice the bidders are registered here. ADVERTISEMENT 1. Are contracts to be awarded by competitive bidding publicly advertised? Yes, in newspapers. 2. Is sufficient time allowed to obtain documents and prepare bids? Yes 3. Do the requirements specify use of publications or websites that are readily available to the public and are known to the private sector as sources of information on public procurement opportunities? Yes, newspapers are well known sources, but there is no central media for procurement information and Internet publication is not used. The Regulations require publication of bid opportunities on the PPDA web-site, but this has not been implemented. COMMUNICATIONS BETWEEN BIDDERS AND THE PROCURING AGENCY 1. Are requests for clarifications answered promptly and completely in a written form? Yes, even though reports of delays are frequent. 2. Are clarifications, minutes of the pre-bid conference, if any, and modifications of the documents promptly communicated to all prospective bidders? Yes, at least in the large projects. 3. Is bidders afforded sufficient time to revise their bids following a modification of the documents? Yes, that is the general perception . Page 31 Uganda 2004 CPAR – Annexes -31- June 2004 4. Do procuring entities maintain accurate records of all communications with the bidders (before and after the deadline for submission)? No, record keeping is of poor quality. RECEIPT OF BIDS AND OPENING 1. Are bids received prior to the deadline securely stored? Yes, according to regulations. 2. Are public bid openings conducted? Yes 3. If so, are they conducted at a specified place closely following the deadline for submission? Yes 4. What information is read out at the opening ceremony? Are minutes kept? Information on name of bidders and bid are read out and recorded in the minutes. 5. Do bid opening procedures differ for goods, works or other types of contracts? If so, how? In two stage procurement of consultants the technical and financial proposals are opened at two separate public occasions. Otherwise procedures are identical. BID EXAMINATION AND EVALUATION 1. Are evaluations conducted by qualified evaluating committees? Yes, often consultants are employed to do the evaluation 2. Are evaluating committees appointed ad hoc for each evaluation? Yes 3. Is responsiveness determined on the basis of the documentary requirements described in the documents and according to established practice? Yes 4. Are bid evaluations carried out thoroughly and on the basis of the criteria specified in the documents? Often non-advertised criteria are applied due to lack of quality in the bidding documents. 5. Is the successful bidder’s qualification to perform the contract determined solely on the basis of the criteria stated in the documents? (See above) If not, what other criteria are considered? No, often non-advertised and non-admissible criteria are applied, such as previous performance . 6. Are evaluations normally completed within the original bid validity period? No, there are widespread complaints of long evaluation and award periods. 7. Are bid evaluation reports prepared containing all essential information (i.e. a clear and complete description of the evaluation process, including the reasons for rejecting any bid as non-responsive, how the stated evaluation criteria were applied, and how the successful bidder’s qualifications were verified)? The rules require such reports, but they are often not completed. Page 32 Uganda 2004 CPAR – Annexes -32- June 2004 8. Describe any significant differences between goods and works procurement relating to the above. The issue of non-advertised criteria is even more outspoken for works procurement, where quality in the bidding documents is of high importance. CONTRACT AWARD AND EFFECTIVENESS 1. Are contracts required to be awarded to the lowest evaluated responsive bidder who has been determined to be qualified to perform the contract satisfactorily? Yes 2. Are negotiations conducted with bidders, before or after selection? Yes, often pre-contract negotiations are performed due to poor quality in technical specifications or corruption. 3. Are additional Government approvals required before contracts can be made effective? The Auditor-General must approve all contract terms for contracts with a value above UGSC 50 million. 4. Is performance security required in a reasonable amount and in a reasonable format? Yes 5. Describe any differences between goods and works relating to the above. Negotiations are more widespread in works procurement, which often are of a more complex nature than goods procurement. CONTRACT ADMINISTRATION 1. Are there manual or computerized procurement and/or contract monitoring systems? No 2. Are suppliers and contractors generally paid on time? What is the normal time lapse from invoice submission to final payment? No, delays in payment are frequent. 3. Are there appropriate procedures to monitor delivery of goods and services to verify quantity, quality and timeliness? No general procedures in place. Practices differ from entity to entity. 4. Are contract changes or variations handled promptly in accordance with the contract conditions and established practice (i.e. change/variation orders are given and/or confirmed in writing, constructive change orders are avoided, unit rates in the contract are honoured but the supplier or contractor is allowed to agree to any new unit rates introduced and the completion schedule for each change or variation, etc.)? Variations are often handled informally without observing contract terms. 5. Do procuring entities normally make a good faith attempt to resolve disagreements through informal negotiations? Yes Page 33 Uganda 2004 CPAR – Annexes -33- June 2004 6. If this fails, are the resulting disputes handled in accordance with the contract conditions? No, there is a general tendency to rely on informal negotiations and ignore actual contractual terms. 7. Are supplier and contractor claims handled fairly based on a clear recognition of both parties’ obligations under the contract? Yes, but only through negotiations. 8. Are contract managers/administrators skilled in resolving problems in a timely manner and dealing with unforeseen circumstances arising during the life of the contract? Do they adequately document all actions of contractual import taken by the purchase/employer during implementation? No, contract managers are often without knowledge of the legal framework and the basic principles of dispute settlement. 9. Are contractual remedies utilized only when appropriate and in accordance with the contract conditions? Generally contract remedies are not applied. 10. Are contracts generally completed on schedule and within the originally approved contract price? Or are cost and time overruns frequent? If so, in which sectors and for which particular kinds of contracts? Are fair final acceptance procedures used and certificates issued in a timely fashion? Delays are frequent, but are often the result of poor planning and specifications. 11. Are contracts generally administered in a fair and equitable manner (e.g. the purchaser/employer grants extensions of time when delays are attributable to its untimely action, fair compensation is provided to offset additional costs caused by its mistakes, etc.) Yes 12. Are under-inspection, over-inspection and/or improper rejection of goods, materials or methods of carrying out the works a common problem? No 13. Are disruptions of the supplier’s or contractor’s orderly performance common? No 14. Can any of the improper contract administrative practices identified above, be attributable to a problem identified in the local procurement environment? Specify Yes, the poor quality of planning and technical specifications are often the causes of improper administrative practices and opens opportunities for corruption. 15. Are procurement evaluations/audits conducted? If so, describe scope, frequency, who carries them out, etc. The PPDA are tasked with carrying out procurement audits even though it has only performed few at the central level. Procurement audits are not carried out at the local level. RECORD KEEPING Page 34 Uganda 2004 CPAR – Annexes -34- June 2004 1. For contracts to be awarded on the basis of competitive bidding, does the procuring entity maintain a complete record of the process? This would include e.g. copies of all public advertisements, prequalification documents (if used), the prequalification evaluation report documenting any decisions not to pre-qualify certain potential bidders, the bidding documents and any addenda, a record of any pre-bid meetings, the bid opening minutes, the final bid evaluation report (including a detailed record of the reasons used to accept or reject each bid, copies of bids, appeals against procedures or award recommendations, a signed copy of the final contract and any performance and advance payment securities issued, etc. The Regulations require that a procurement record with all relevant information is maintained. However, this rarely happens, and the requirement is not enforced. 2. Are adequate contract administration records maintained? (These would include contractual notices issued by the supplier, contractor, purchaser or employer; a detailed record of all change or variation orders issued affecting the scope, quantities, timing or price of the contract; records of invoices and payments; certificates of inspection, acceptance and completion; records of claims and disputes and their outcome; etc.) The Regulations require that a procurement record with all relevant information is maintained. However, this rarely happens, and the requirement is not enforced. 3. For small contracts or purchase orders for goods procured using shopping procedures, is a database maintained showing the current market price for commonly needed items? No, procuring entities conduct ad hoc surveys, which often leads to poor quality in cost assessment. 4. Are periodic reports prepared on overall procurement activities? By and for whom? Yes, by the PPDA for the Ministry of Finance. Section E - Public Sector Selection of Consultants 1. Are procuring entities capable of carrying out a professional selection process for consultant services? Do they administer consultant contracts effectively? Yes. The rules are contained in the Regulations on selection and employment of consultants. 2. Is the winning consultant firm normally chosen by comparing competitive proposals submitted by a list of qualified firms? Where do implementing agencies obtain the information necessary to develop lists? Specify what other methods are used and when they are used. Short lists are compiled on the basis of expressions of interest following public advertisement. 3. Do requests for proposals clearly describe the selection process and evaluation criteria? Yes, this is normally the case. 4. Do the Terms of Reference describe the requirements of the assignment clearly and completely, including background, scope and objectives, deliverables, time frame, anticipated staff-time, and government contributions? No on government funded projects there is a general issue of low quality in the description of requirements and specifications. 5. Is selection based only on technical considerations or also on price? Normally the split is 80% on the technical criteria and 20% on price. Page 35 Uganda 2004 CPAR – Annexes -35- June 2004 6. Are technical criteria detailed and appropriate and their relative weights reasonable? Yes 7. If price is also a selection factor, are technical evaluations completed before opening and consideration of price proposals? Are the relative weights chosen for each factor appropriate? Yes 8. Are there standard conditions of contract? Are they fair and equitable to the consultant? Do they adequately protect the interests of the client? No, standard donor documents are in use. 9. What form of compensation is used? Unit rates? Lump sum based on milestones? Other? All forms are available, depending on the nature of the contract, but mostly unit rates are used. The Regulations describe lump sum, time based (unit rates), percentage fee, success fee, retainer and framework contracts. 10. Are consultants required to submit proposal, performance and/or advance payment securities? No normally not. 11. Is there a conflict of interest policy provision included in the conditions of contract? (If so, describe) No, only if contained in the conditions of contract applied. 12. Are evaluations conducted by committees with appropriate expertise? Yes, the relevant contracts committee is responsible for appointing the evaluation committee members in accordance with the Regulations. 13. Are general criteria broken down into appropriate detailed criteria agreed by the evaluating committee before conducting the evaluation? Yes, this is normally the case. 14. Are all criteria applied consistently, fairly and impartially by the evaluators? Are the individual score sheets kept as part of the procurement record? Yes, this is normally the case 15. Are evaluations conducted individually by each member of the committee and the results averaged? No, committees reach a common position through negotiations. 16. Are new factors or weights added after the issuance of the request for proposals which are considered during the evaluation? No, this is not the general perception. 17. Are evaluation reports prepared containing essential details of the process, results, and matters to be taken up during contract negotiations? Such reports are mandatory, but are often not available due to poor enforcement of rules and inadequate filing system. 18. Are evaluations normally completed within the time originally requested for the validity of proposals? Yes, but drawn out evaluation and award periods are common. Page 36 Uganda 2004 CPAR – Annexes -36- June 2004 Section F - Procurement Performance STATISTICS 1. What are the approximate annual values of public procurement for goods, works, and consultant services, respectively? If possible, distinguish between procurement for projects and ongoing programs. 2. What are the approximate percentages of goods, works, and consultant services financed by external donors? 3. What percentage of public procurement follows competitive bidding procedures? Other methods? 4. What percentage of competitively bid procurement is donor financed? GENERAL EXPERIENCE 1. Are government organizations generally perceived by suppliers/contractors/consultants/the public as fair and efficient in their procurement practices? No, there is a perception of widespread corruption in the public service. 2. Which of the following factors are considered to be problems by persons familiar with public procurement in the country? Yes No Inappropriate or outdated laws and regulations x Poor compliance with and enforcement of existing laws x Poor information about procurement needs x Shortage of experienced professional staff x Poor training of procurement staff x Low pay for procurement staff x Poor procurement training x Weak procurement planning x Poor procurement methods and procedures x Lack of good standard procurement documents x Poor technical specifications (Goods only? Works?)both x Cumbersome contract approval procedures x Lack of clear delegation of contracting authority x Interference by higher level officials x Inadequate appeals mechanism x Lack of anti-corruption measures and enforcement x EXPERIENCE WITH WORLD BANK-ASSISTED PROJECTS Page 37 Uganda 2004 CPAR – Annexes -37- June 2004 1. How many Bank projects have been completed in the country? Are now underway? In which sectors? 2. Which organizations have been responsible for procurement on these projects? 3. What thresholds for ICB, IS, NS, and prior review for goods, works, and consultant services are currently in effect for ongoing projects? Are they the same for all projects? How long have they been in effect? 4. Do project audits/completion reports/supervision reports indicate significant procurement problems? Have any cases of mis-procurement occurred? Describe. 5. Have procurement issues caused serious implementation delays, cost overruns, disbursement delays? Describe. 6. Does the Bank receive a large number of complaints about procurement procedures, selection decisions in the country? 7. Are contracts generally awarded within the planned, usual time frame that would be required for similar operations by other experienced and efficient organizations? 8. Are there serious problems or conflicts between national and/or local practices and World Bank guidelines which should be addressed on an interim basis pending implementation of recommended long-term action plans? Section G - Private Sector Procurement 1. Is there a reasonably well-developed private sector which freely trades goods and procures works and other services? Yes, but there is little tradition for professional procurement 2. Does the private sector compete actively in opportunities advertised by the government? Is this evidenced by number of bids/proposals received when open competition is sought? Yes, but cartel formation is present 3. Do private sector companies feel comfortable in exercising their right to complain or seek remedies under the public procurement system (to the extent the system provides for this right)? No 4. What is the performance record of private sector companies on government contracts? (Is there evidence of deliberate underpricing, poor performance on government contracts or excessive price increases after contract award during performance)? There is anecdotal evidence of irregularities in most fields. Page 38 Uganda 2004 CPAR – Annexes -38- June 2004 5. Is there evidence that private sector companies are aware of requirements and have the capacity to submit acceptable bids/proposals (i.e. understand the system)? Are many bids/proposals rejected for procedural reasons? There is generally poor knowledge of the new Procurement Act and Regulations among private sector bidders. Large companies do have basic knowledge about participating in public procurement, whereas most SMEs do not 6. Has there been any experience with private sector contracts for the provision, operation, maintenance of infrastructure for various public services (BOO/BOT/BOOT/etc.)? Describe. The mission has not enquired into this issue 7. Do private sector companies have access to commercial loans at a reasonable interest rate? Yes 8. Are bonds commonly used? If so, is there a regulatory authority overseeing the activities of bonding companies? Is there a mechanism to suspend companies that have not honoured their obligations to pay or execute bonds? Is there a satisfactory track record of calling of bonds? Yes SECTION H - EMERGING AREAS OF INTEREST 1. Is military expenditure covered by the public procurement systems laws and regulations? Briefly describe coverage and exceptions. Yes, except for procurement of sensitive goods and services. There are presently no guidelines accurately defining the split between sensitive and non-sensitive procurement, but even though the definition of this split is the prerogative of the PPDA, the UDF/MoD have unchallenged been able to define the split. 2. Does the public procurement system and accompanying control environment (including the financial accountability system) control the flow of funds so as to ensure that funds budgeted for valid expenditures are not diverted to finance illicit activities (e.g. money laundering, terrorism)? 3. Does the country have policies aimed at promoting environmentally and socially responsible procurement? Briefly describe coverage or initiatives that will contribute to such procurement practices. No specific policies are in place. Page 39 U g a n d a 2 0 0 4 C P A R – A n n e x e s - 3 9 - J u n e 2 0 0 4 A N N E X 7 - R E C O M M E N D E D C P A R A C T I O N P L A N M e a s u r e s t o b e t a k e n t o I m p r o v e P u b l i c P r o c u r e m e n t u n d e r t h e F o u r B a s i c P i l l a r s o f P r o c u r e m e n t F i d u c i a r y M a n a g e m e n t T h e f o u r p i l l a r s o f s o u n d p u b l i c p r o c u r e m e n t R e c o m m e n d e d A c t i o n s S h o r t t e r m ( 0 - 2 y e a r s ) M e d i u m t e r m ( 2 - 4 y e a r s ) R e s p o n s i b l e T h e P P D A s h o u l d a s s e r t i t s a u t h o r i t y a t t h e M i n i s t r y o f D e f e n c e t o m o n i t o r a n d e n f o r c e t h e t i m e l y c o m p l i a n c e w i t h t h e A c t a n d R e g u l a t i o n s X P P D A T h e P P D A s h o u l d i s s u e s i m p l i f i e d g u i d e l i n e s , i n c l u d i n g s t e p - b y - s t e p g u i d e s a n d c h e c k - l i s t s X P P D A T h e P P D A s h o u l d d i s p e r s e t h e s t a n d a r d f o r m s c o n t a i n e d i n t h e R e g u l a t i o n s a n d e n f o r c e m a n d a t o r y u s e o f t h e s e s t a n d a r d f o r m s t o i n c r e a s e t r a n s p a r e n c y X P P D A A s t u d y s h o u l d b e i n i t i a t e d w i t h t h e p u r p o s e o f i d e n t i f y i n g s h o r t c o m i n g s s u c h a s t h e a c c e s s t o n e g o t i a t i o n s , d o m e s t i c p r e f e r e n c e i n a w a r d s , a n d t h e m e r i t p o i n t s y s t e m i n t h e R e g u l a t i o n s , a n d r e v i s e t h e R e g u l a t i o n s w i t h t h e a i m o f s i m p l i f y i n g t h e m . X P P D A T h e P P D A s h o u l d l a u n c h a c a m p a i g n o f i n f o r m i n g t h e p u b l i c o f i t s r o l e i n c o m p l a i n t s a n d t h e t a k e i n i t i a t i v e o n h i g h - p r o f i l e c a s e s X P P D A T h e P P D A s h o u l d a s s e r t a n d s t r e n g t h e n i t s r o l e i n h a n d l i n g c o m p l a i n t s X P P D A , p r o c u r i n g e n t i t i e s T h e I G G s h o u l d a p p o i n t a s p e c i a l i s t p r o c u r e m e n t b o d y t o h a n d l e c o m p l a i n t s i n c a s e w h e r e t h e P P D A h a s b e e n a d v i s i n g p a r t i e s X I G G ( P P D A ) R e g u l a t i o n s f o r l o c a l g o v e r n m e n t s h o u l d b e a d a p t e d t o t h e s p e c i f i c n e e d s a n d c a p a c i t y o f l o c a l g o v e r n m e n t X M i n i s t r y o f L o c a l G o v e r n m e n t , P P D A P i l l a r 1 : L e g i s l a t i v e a n d R e g u l a t o r y F r a m e w o r k T h e L o c a l G o v e r n m e n t R e g u l a t i o n s s h o u l d a b o l i s h t h e d i r e c t p o l i t i c a l i n f l u e n c e o n t h e p r o c u r e m e n t p r o c e s s a t l o c a l l e v e l , b y l e t t i n g t h e C h i e f A d m i n i s t r a t i v e O f f i c e r n o m i n a t e a n d r e m o v e m e m b e r s o f t e n d e r b o a r d s X M i n i s t r y o f L o c a l G o v e r n m e n t , P P D A P i l l a r 2 : C e n t r a l I n s t i t u t i o n a l I n s t i t u t i o n a l f r a m e w o r k T h e M o F P E D s h o u l d f u l f i l i t s p o l i c y m a k i n g r o l e f o r t h e p u b l i c p r o c u r e m e n t s e c t o r a n d a s a m i n i m u m i d e n t i f y e m p l o y e e s o r e s t a b l i s h a u n i t r e s p o n s i b l e f o r t h i s t a s k . X M o F P E D Page 40 U g a n d a 2 0 0 4 C P A R – A n n e x e s - 4 0 - J u n e 2 0 0 4 T h e f o u r p i l l a r s o f s o u n d p u b l i c p r o c u r e m e n t R e c o m m e n d e d A c t i o n s S h o r t t e r m ( 0 - 2 y e a r s ) M e d i u m t e r m ( 2 - 4 y e a r s ) R e s p o n s i b l e T h e P P D A s h o u l d b e e n c o u r a g e d t o f u l f i l a n d m a i n t a i n a l l i t s r e g u l a t o r y f u n c t i o n s a s d e s c r i b e d i n t h e P P D A A . P e r f o r m a n c e o f f u n c t i o n s s h o u l d b e l i n k e d t o t h e f i n a n c i a l a l l o c a t i o n s o f t h e A u t h o r i t y a n d s h o u l d a l s o b e r e f l e c t e d i n t h e p e r f o r m a n c e c o n t r a c t s o f t h e P P D A m a n a g e m e n t , a n d i n p a r t i c u l a r t h e E x e c u t i v e D i r e c t o r . T h e A n n u a l P e r f o r m a n c e E v a l u a t i o n R e p o r t o f t h e P P D A s h o u l d r e p o r t o n a l l o f t h e o b j e c t i v e s a n d f u n c t i o n s l i s t e d i n t h e A c t . X P P D A a n d M o F P E D T h e c l a u s e d e b a r r i n g t h e E x e c u t i v e D i r e c t o r f r o m e n g a g i n g i n b u s i n e s s o r e m p l o y m e n t e l s e w h e r e s h o u l d b e e x t e n d e d t o t h e e n t i r e m a n a g e m e n t t e a m o f t h e P P D A . U p o n t a k i n g u p a m a n a g e m e n t p o s i t i o n i n t h e P P D A , t h e c a n d i d a t e s h o u l d b e r e q u i r e d t o d e c l a r e h i s i n t e r e s t s a n d p r o f e s s i o n a l l i n k s o u t s i d e o f t h e P P D A . X P P D A T h e P P D A s h o u l d i n i t i a t e a p r o g r a m m e o f c o m p r e h e n s i v e c o m p l i a n c e r e v i e w t a r g e t i n g a l l P D E s t o e n s u r e t h a t t h e P D E s a r e f u l l y o p e r a t i o n a l a n d f u n c t i o n i n g i n l i n e w i t h t h e s t a n d a r d s o f t h e P P D A A X P P D A I n l i g h t o f t h e p a r t i c u l a r f e a t u r e s o f t h e U g a n d a h e a l t h c a r e s y s t e m a n d t h e n e e d f o r q u a l i t y a s s u r a n c e o f d r u g s , a s w e l l a s p r e v i o u s a n d c u r r e n t e x t e n s i v e d o n o r i n v e s t m e n t i n t h e N M S , i t i s s u g g e s t e d t h a t t h e p r o c e s s o f r a t i o n a l i s i n g a n d r e s t r u c t u r i n g t h e N M S b e c o n t i n u e d o n p r i o r i t y . X N M S , M i n i s t r y o f H e a l t h , D o n o r s P r o c u r e m e n t c a p a c i t y T h e P P D A s h o u l d c o n t i n u e t o u p g r a d e t h e p r o c u r e m e n t p r o f e s s i o n a l s o n r e l e v a n t p u b l i c s e c t o r a s p e c t s , i n c l u d i n g f i n a n c i a l m a n a g e m e n t p r i n c i p l e s X P P D A a n d M o F P E D T h e P P D A s h o u l d a d d r e s s t h e g e n e r a l l a c k o f t h e f u n d a m e n t a l u n d e r s t a n d i n g o f t h e k e y p u b l i c p r o c u r e m e n t p r i n c i p l e s , i n c l u d i n g t h e e t h i c a l a s p e c t s o f p r o c u r e m e n t . X P P D A T h e c a p a c i t y b u i l d i n g i n i t i a t i v e s t o d i s t i n g u i s h b e t w e e n t h e d i f f e r e n t t y p e s o f P D E s X P P D A , M o L G a n d e x t e r n a l t r a i n i n g p r o v i d e r s T h e I n t e r - m i n i s t e r i a l P r o f e s s i o n a l D e v e l o p m e n t C o m m i t t e e f o r P r o c u r e m e n t s h o u l d b e a c t i v a t e d . X P P D A H R m e a s u r e s , i n c l u d i n g i n d i v i d u a l c a r e e r d e v e l o p m e n t p l a n s , p e r f o r m a n c e m e a s u r e s , a n d t r a i n i n g , e t c . f o r t h e d e v e l o p m e n t o f t h e P P D A s t a f f s h o u l d b e i n t r o d u c e d . X P P D A T h e P P D A t o d e v e l o p a k n o w l e d g e s h a r i n g p o l i c y a n d t o e n s u r e t h a t k n o w l e d g e - s h a r i n g a c t i v i t i e s t a k e p l a c e w i t h i n t h e P P D A a n d b e t w e e n t h e P P D A , t h e E n t i t i e s a n d t h e p r o v i d e r s . X P P D A I n s t i t u t i o n a l C a p a c i t y K n o w l e d g e m a n a g e m e n t s y s t e m s h o u l d b e i n t r o d u c e d i n t h e P P D A X P P D A Page 41 U g a n d a 2 0 0 4 C P A R – A n n e x e s - 4 1 - J u n e 2 0 0 4 T h e f o u r p i l l a r s o f s o u n d p u b l i c p r o c u r e m e n t R e c o m m e n d e d A c t i o n s S h o r t t e r m ( 0 - 2 y e a r s ) M e d i u m t e r m ( 2 - 4 y e a r s ) R e s p o n s i b l e P P D A t o p r e p a r e a d e t a i l e d i m p l e m e n t a t i o n p l a n f o r t h e c a p a c i t y b u i l d i n g s t r a t e g y X P P D A P P D A t o i n i t i a t e a c c r e d i t a t i o n s y s t e m , l i n k i n g t h i s t o c a p a c i t y b u i l d i n g a n d c a r e e r d e v e l o p m e n t m e a s u r e s X P P D A a n d M o F P E D C a r e e r d e v e l o p m e n t a n d m a n a g e m e n t p r o g r a m m e s f o r t h e p r o c u r e m e n t c a d r e i n t h e c e n t r a l g o v e r n m e n t s h o u l d b e d e v e l o p e d i n c o o p e r a t i o n b e t w e e n t h e P P D A a n d t h e M i n i s t r y o f P u b l i c S e r v i c e , h e r e b y e n s u r i n g t h a t t h e r e q u i r e d p r o c u r e m e n t k n o w l e d g e i s p r e s e n t i n t h e P D E s . X P P D A , M P S T h e M i n i s t r y o f P u b l i c S e r v i c e , t h e M i n i s t r y o f L o c a l G o v e r n m e n t a n d t h e M o F P E D s h o u l d u r g e n t l y e s t a b l i s h a f o r m a l e m p l o y m e n t c a t e g o r y f o r p r o c u r e m e n t p r o f e s s i o n a l s a t l o c a l g o v e r n m e n t l e v e l X M P S , M o L G a n d M o F P E D T h e P P D A s h o u l d e n s u r e t h a t t h e M i n i s t r y o f P u b l i c S e r v i c e , t h e M i n i s t r y o f L o c a l G o v e r n m e n t a n d t h e M o F P E D d e v e l o p o f a s e l e c t i o n a n d a p p o i n t m e n t f r a m e w o r k f o r l o c a l g o v e r n m e n t p r o c u r e m e n t p r o f e s s i o n a l s e n s u r i n g t h a t t h e n e e d e d q u a l i f i c a t i o n s a r e o b t a i n e d . X P P D A , M P S , M o L G a n d M o F P E D C a r e e r d e v e l o p m e n t a n d m a n a g e m e n t p r o g r a m m e s f o r t h e p r o c u r e m e n t c a d r e i n g o v e r n m e n t s h o u l d b e d e v e l o p e d i n c o o p e r a t i o n b e t w e e n t h e M o F P E D , t h e P P D A a n d t h e M i n i s t r y o f P u b l i c S e r v i c e , h e r e b y e n s u r i n g t h a t t h e r e q u i r e d p r o c u r e m e n t k n o w l e d g e i s p r e s e n t i n t h e P D E s . X M o F P E D , P P D A a n d M P S T h e P P D A t o i n t r o d u c e m e t h o d s f o r m e a s u r i n g t h e e f f e c t o f t h e c a p a c i t y b u i l d i n g a c t i v i t i e s o n t h e p e r f o r m a n c e i n t h e P D E s X P P D A T h e e s t a b l i s h m e n t o f a s t r o n g P r o c u r e m e n t P r o f e s s i o n a l s A s s o c i a t i o n s h o u l d b e s u p p o r t e d a n d p a r t i c u l a r a t t e n t i o n s h o u l d b e p a i d t o t h e i n s t i t u t i o n o f a s o u n d e t h i c a l f r a m e w o r k . T h i s i n c l u d e s i m p l e m e n t a t i o n o f m e a s u r e s f o r s e l f - r e g u l a t i o n a i m e d a t i n c r e a s i n g t h e p r o f e s s i o n a l s t a n d a r d s a n d i n t e g r i t y w i t h i n t h e p r o f e s s i o n X P r o c u r e m e n t P r o f e s s i o n a l s ( i f n e c e s s a r y f a c i l i t a t e d b y t h e P P D A ) T h e P P D A a n d M i n i s t r y o f L o c a l G o v e r n m e n t s h o u l d i n i t i a t e s t u d y o n n e e d f o r p r o c u r e m e n t c a p a c i t y b u i l d i n g b a s e d o n t h e l o c a l R e g u l a t i o n s w h e n a v a i l a b l e . X P P D A a n d M o L G P P D A a n d t h e M i n i s t r y o f L o c a l G o v e r n m e n t i n c o l l a b o r a t i o n w i t h t h e M o F P E D a g r e e o n a d e t a i l e d a c t i o n p l a n , w h i c h c l e a r l y d e f i n e s t h e c a p a c i t y b u i l d i n g t a s k s a h e a d a n d t h e r e s p o n s i b i l i t i e s o f e a c h p a r t y X P P D A , M o L G a n d M o F P E D Page 42 U g a n d a 2 0 0 4 C P A R – A n n e x e s - 4 2 - J u n e 2 0 0 4 T h e f o u r p i l l a r s o f s o u n d p u b l i c p r o c u r e m e n t R e c o m m e n d e d A c t i o n s S h o r t t e r m ( 0 - 2 y e a r s ) M e d i u m t e r m ( 2 - 4 y e a r s ) R e s p o n s i b l e P r o c u r e m e n t O p e r a t i o n s P P D A t o s t e p u p e n f o r c e m e n t o f p r o c u r e m e n t p l a n n i n g a s r e q u i r e d i n t h e R e g u l a t i o n s X P P D A , p r o c u r i n g e n t i t i e s P r o c u r e m e n t p l a n n i n g s h o u l d b e i n t e g r a t e d i n t h e b u d g e t p r o c e s s X M i n i s t r y o f F i n a n c e P r o c u r e m e n t p l a n n i n g t o h a v e c e n t r a l p l a c e m e n t i n c u r r i c u l u m f o r f u t u r e c a p a c i t y b u i l d i n g i n i t i a t i v e s X P P D A , t r a i n i n g i n s t i t u t i o n s T h e a d e q u a t e p r o v i s i o n s o f t h e A c t a n d t h e R e g u l a t i o n s f o r c h o i c e o f p r o c u r e m e n t m e t h o d s h o u l d b e e n f o r c e d t h r o u g h p r o c u r e m e n t a u d i t s X P P D A T h e e x c e s s i v e u s e o f r e s t r i c t e d b i d d i n g m e t h o d s s h o u l d b e r e d u c e d b y n a r r o w i n g d o w n t h e s i t u a t i o n s w h e r e r e s t r i c t e d m e t h o d s a r e a l l o w e d X P P D A , p r o c u r i n g e n t i t i e s T h e m a n d a t o r y s u b m i t t a l o f r e p o r t s t o t h e P P D A o n c h o i c e o f p r o c u r e m e n t m e t h o d a p p l i e d s h o u l d b e e n f o r c e d X P r o c u r i n g e n t i t i e s , P P D A T h e P P D A s h o u l d m a k e a l l a d v e r t i s e d p r o c u r e m e n t o p p o r t u n i t i e s a v a i l a b l e o n i t s w e b - s i t e a s r e q u i r e d b y t h e R e g u l a t i o n s X P P D A T h e P P D A s h o u l d i s s u e g u i d e l i n e s o n t h e p r o p e r a p p l i c a t i o n o f t h e r e g i s t r a t i o n l i s t s , i n p a r t i c u l a r c o n c e r n i n g c o m p i l a t i o n o f s h o r t l i s t s f r o m t h e r e g i s t r a t i o n l i s t s X P P D A W h e n b i d d e r s i n r e s t r i c t e d p r o c e d u r e s a r e p i c k e d f r o m r e g i s t r a t i o n s l i s t s , a l l s u p p l i e r s o n t h e l i s t s h o u l d b e a l l o w e d t o b i d X P r o c u r i n g e n t i t i e s T h e P P D A s h o u l d i n t r o d u c e c r e d i b l e e n f o r c e m e n t o f R e g u l a t i o n a n d g u i d e l i n e s X P P D A P P D A s h o u l d e s t a b l i s h t h e R e g i s t e r o f P r o v i d e r s , a s a l l o w e d i n t h e R e g u l a t i o n s , t o p r o v i d e a n o n - m a n d a t o r y c e n t r a l d a t a b a s e o f s u p p l i e r s a n d p r i c e s X P P D A T h e P P D A s h o u l d e n f o r c e u s e o f i t s o w n s t a n d a r d b i d d i n g d o c u m e n t s , t h r o u g h t h e m a n d a t o r y r e q u i r e m e n t f o r u s e o f t h e s e d o c u m e n t s a n d a p p r o v a l o f a n y d e v i a t i o n s X P P D A , p r o c u r i n g e n t i t i e s u s e o f p r o p e r a w a r d c r i t e r i a s h o u l d b e e n f o r c e d t h r o u g h a u d i t s X P P D A A c c e s s t o n e g o t i a t i o n s s h o u l d b e r e s t r i c t e d X P P D A t h r o u g h g u i d e l i n e s T h e r e c o r d s a n d A r c h i v e A c t s h o u l d b e f u l l y i m p l e m e n t e d X M i n i s t r y o f F i n a n c e T h e P P D A s h o u l d m o n i t o r a n d e n f o r c e t h e p r o p e r u s e o f t h e “ p r o c u r e m e n t f i l e ” t h r o u g h i t s p r o c u r e m e n t a u d i t s X P P D A P i l l a r 3 : P r o c u r e m e n t O p e r a t i o n s a n d M a r k e t P l a c e : T h e p r o c u r i n g e n t i t i e s s h o u l d s t r e n g t h e n t h e i r f o c u s o n c o n t r a c t m a n a g e m e n t c a p a c i t y a n d i n c r e a s e t h e r e s o u r c e s a l l o c a t e d t o c o n t r a c t m a n a g e m e n t X P r o c u r i n g e n t i t i e s Page 43 U g a n d a 2 0 0 4 C P A R – A n n e x e s - 4 3 - J u n e 2 0 0 4 T h e f o u r p i l l a r s o f s o u n d p u b l i c p r o c u r e m e n t R e c o m m e n d e d A c t i o n s S h o r t t e r m ( 0 - 2 y e a r s ) M e d i u m t e r m ( 2 - 4 y e a r s ) R e s p o n s i b l e P P D A s h o u l d i n c r e a s e i t s a u d i t i n i t i a t i v e s t o m e e t t h e r e q u i r e m e n t s o f t h e P r o c u r e m e n t A c t o f e f f e c t i v e a n d c r e d i b l e a u d i t m e a s u r e s X P P D A T h e P P D A s h o u l d b e r e i n f o r c e d t o e n a b l e i t t o c o u n t e r a t t e m p t s o f p o l i t i c a l i n t e r v e n t i o n i n i t s p e r f o r m a n c e o f t h e d u t i e s g i v e n i t b y t h e P r o c u r e m e n t A c t X M i n i s t r y o f F i n a n c e , P P D A P P D A s h o u l d m a k e t h e m a n d a t o r y l i s t a n d s t a t i s t i c s c o n c e r n i n g w a i v e r s a n d r e a s o n s f o r t h e i r u s e p u b l i c X P P D A T h e P P D A s h o u l d s t e p u p e n f o r c e m e n t o f t h e m a n d a t o r y f l o w s o f i n f o r m a t i o n m e n t i o n e d i n t h e R e g u l a t i o n s X P P D A T h e P P D A s h o u l d s t r e n g t h e n i t s c a p a c i t y t o r e c e i v e , o r g a n i s e a n d a n a l y z e i n c o m i n g i n f o r m a t i o n f r o m t h e p r o c u r i n g e n t i t i e s X P P D A M a r k e t P l a c e T h e U R A ’ s r e s e a r c h u n i t s h o u l d m o v e a s q u i c k l y a s p o s s i b l e a n d i m p l e m e n t a t i o n o f r e f e r e n c e v a l u e s s h o u l d t a k e p l a c e a s s o o n a s p o s s i b l e . S h a r i n g o f d a t a a m o n g p o r t s o f e n t r y s h o u l d b e e s t a b l i s h e d a s s o o n a s p o s s i b l e , c o n s i s t e n c e i n v a l u a t i o n o f t h e s a m e g o o d s i s a m i n i m u m r e q u i r e m e n t X U R A , M T T I C u s t o m s s h o u l d b e e q u i p p e d w i t h a c c e s s t o a n i n t e r n a t i o n a l p r i c e d a t a b a s e o r t h e i n s t a l m e n t o f p r i c e - r o b o t s o f t w a r e . X U R A , M T T I A g r o u p o f c u s t o m s o f f i c e r s s p e c i a l i s e d i n v a l u a t i o n a n d c l a s s i f i c a t i o n s h o u l d b e e s t a b l i s h e d a n d t r a i n e d X U R A , M T T I F u l l i m p l e m e n t a t i o n o f A S Y C U D A + + s h o u l d m o v e f o r w a r d q u i c k l y , i n c l u d i n g a c c e s s f o r i m p o r t e r s t o l o d g e d a t a i n t o A S Y C U D A + + p r i o r t o e n t r y a n d t h e b l u e , g r e e n , y e l l o w , r e d l i n e c l a s s i f i c a t i o n X U R A , M T T I A n e d u c a t i o n p r o g r a m m e f o r f o r w a r d i n g a n d c l e a r i n g a g e n t s s h o u l d b e e s t a b l i s h e d . X U R A , M T T I , U A F A , U n i v e r s i t i e s A c e r t i f i c a t i o n s y s t e m f o r c l e a r i n g a g e n t s b a s e d o n t h e q u a l i f i c a t i o n s a c q u i r e d i n t h e e d u c a t i o n p r o g r a m m e s h o u l d b e d e v e l o p e d X M T T I , U A F A C o u r s e s f o r i m p o r t e r s s h o u l d b e d e v e l o p e d i n p r i n c i p l e s , p r o c e d u r e s a n d r u l e s i n r e l a t i o n t o i m p o r t s f o c u s i n g e s p e c i a l l y o n t h e p r o p e r d o c u m e n t a t i o n t o o b t a i n a n d m a i n t a i n o n t h e i m p o r t e d g o o d s X U R A , M T T I , K A C I T A Page 44 U g a n d a 2 0 0 4 C P A R – A n n e x e s - 4 4 - J u n e 2 0 0 4 T h e f o u r p i l l a r s o f s o u n d p u b l i c p r o c u r e m e n t R e c o m m e n d e d A c t i o n s S h o r t t e r m ( 0 - 2 y e a r s ) M e d i u m t e r m ( 2 - 4 y e a r s ) R e s p o n s i b l e A w a r e n e s s m u s t b e r a i s e d o n p o s s i b l e s o u r c e s o f i n f o r m a t i o n f o r i m p o r t e r s a n d c l e a r i n g a g e n t s – d e v e l o p m e n t a n d i m p l e m e n t a t i o n o f a c o m m u n i c a t i o n s t r a t e g y t a r g e t e d a t s m a l l e r i m p o r t e r s i s a k e y i s s u e M T T I , U R A T h e F i n a n c e B i l l s h o u l d b e m a d e a v a i l a b l e f o r i m p o r t e r s a n d c l e a r i n g a g e n t s ( a s a m i n i m u m o n t h e M F A w e b s i t e ) a n d t a r i f f s f o r t h e s e r v i c e s o f c l e a r i n g a g e n t s e x i s t s h o u l d b e p u b l i c i s e d t a r g e t e d a t i m p o r t e r s X M F A P r a c t i c e c o n c e r n i n g G o v e r n m e n t t a x p a y m e n t o n i m p o r t s s h o u l d i m m e d i a t e l y b e p u t i n l i n e w i t h t h e f o r m a l r u l e s . X X G o v e r n m e n t R e v i s e t h e C u s t o m s A c t o f 1 9 7 1 a n d b r i n g i t u p t h e r e q u i r e d m o d e r n s t a n d a r d s X G o v e r n m e n t I n t r o d u c e g r e e n , b l u e , y e l l o w , r e d c l a s s i f i c a t i o n o f e x p o r t e r s X U R A , M T T I P a r l i a m e n t s h o u l d a p p r o v e t h e C o m p e t i t i o n A c t w i t h o u t f u r t h e r d e l a y a n d m e a s u r e s f o r i m p l e m e n t a t i o n s h o u l d b e i n s t i t u t e d X G o v e r n m e n t , P a r l i a m e n t A c o m p e t i t i o n a u t h o r i t y / b o d y a i m e d a t o v e r s e e i n g t h e d e v e l o p m e n t o f a c o m p e t i t i v e m a r k e t i n U g a n d a s h o u l d b e e s t a b l i s h e d X G o v e r n m e n t T h e c o m p e t e n c e t o e n f o r c e c o m p e t i t i o n a n d c o u n t e r a c t c a r t e l f o r m a t i o n n e e d s t o b e d e v e l o p e d i n a n e x i s t i n g b o d y X G o v e r n m e n t T h e R e g i s t r a r o f C o m p a n i e s n e e d t o d e v e l o p i n t o a n e n t i t y , w h o s e i n f o r m a t i o n i s c r e d i b l e M T T I I n s t i t u t i o n s i n p l a c e s u c h a s t h e C o m m e r c i a l C o u r t , t h e C e n t r e f o r D i s p u t e R e s o l u t i o n a n d t h e T a x A p p e a l s T r i b u n a l s h o u l d b e g i v e n c o u n t r y w i d e o u t r e a c h X M T T I S u p p o r t c a p a c i t y b u i l d i n g o f t h e p r i v a t e s e c t o r i n b a s i c b u s i n e s s s k i l l s X M T T I a n d a l l o r g a n i s a t i o n s i n v o l v e d G o v e r n m e n t r e g i s t r a t i o n a n d c e r t i f i c a t i o n b o a r d s , i n c o l l a b o r a t i o n w i t h t h e s e l f r e g u l a t o r y p r o f e s s i o n a l b o d i e s , s h o u l d d e v e l o p r u l e s f o r a n d i m p o s e s a n c t i o n s o n c o m p a n i e s t h a t v i o l a t e t h e c o n d i t i o n s f o r r e g i s t r a t i o n a n d c e r t i f i c a t i o n X R e l e v a n t m i n i s t r i e s , b o a r d s a n d o r g a n i s a t i o n s I t i s n e c e s s a r y t o t a k e a l o o k a t t h e c o n d i t i o n s f o r o b t a i n i n g r e g i s t r a t i o n a n d c e r t i f i c a t i o n w i t h i n d i v i d u a l b o a r d s t o e n s u r e t h a t q u a l i t y a n d c o m p e t e n c e s a r e t h e c o n d i t i o n s f o r o b t a i n i n g r e g i s t r a t i o n r a t h e r t h a n “ a g e ” X R e l e v a n t m i n i s t r i e s , b o a r d s a n d o r g a n i s a t i o n s C a m p a i g n i n g f o r p r o f e s s i o n a l s t o a p p l y f o r r e g i s t r a t i o n w i t h t h e d i f f e r e n t B o a r d s o f P r o f e s s i o n a l s s h o u l d b e s u p p o r t e d X R e l e v a n t m i n i s t r i e s , b o a r d s a n d o r g a n i s a t i o n s Page 45 U g a n d a 2 0 0 4 C P A R – A n n e x e s - 4 5 - J u n e 2 0 0 4 T h e f o u r p i l l a r s o f s o u n d p u b l i c p r o c u r e m e n t R e c o m m e n d e d A c t i o n s S h o r t t e r m ( 0 - 2 y e a r s ) M e d i u m t e r m ( 2 - 4 y e a r s ) R e s p o n s i b l e A c o m m u n i c a t i o n s t r a t e g y f o r d i s s e m i n a t i o n o f i n f o r m a t i o n o n U g a n d a n s t a n d a r d s m u s t b e e l a b o r a t e d a n d i m p l e m e n t e d X X U N B S , M T T I A w e b s i t e w h e r e s t a n d a r d s a r e p u b l i s h e d m u s t b e s e t u p X U N B S P r o c u r i n g e n t i t i e s m u s t a d h e r e t o t h e r e g u l a t i o n s d e m a n d f o r t e n d e r d o c u m e n t s t o s p e c i f y w h i c h s t a n d a r d s t h e d e s i r e d g o o d s , w o r k s o r s e r v i c e s m u s t b e i n a c c o r d a n c e w i t h X P r o c u r i n g e n t i t i e s a n d U N B S U N B S m u s t p r i o r i t i s e i t s a c t i v i t i e s a n d f o c u s i t s s t r a t e g y X U N B S T h e A G a n d t h e P P D A s h o u l d e s t a b l i s h o p e n l i n e s o f c o m m u n i c a t i o n a n d a c o l l a b o r a t i v e , s t r a t e g i c a p p r o a c h f o r t h e m o n i t o r i n g , a u d i t a n d o v e r s i g h t f u n c t i o n s a s s o c i a t e d w i t h t h e p r o c u r e m e n t a n d d i s p o s a l f u n c t i o n s X A G a n d P P D A I n e s t a b l i s h i n g a c o l l a b o r a t i v e , s t r a t e g i c a p p r o a c h t o a u d i t i n g t h e p r o c u r e m e n t a n d d i s p o s a l f u n c t i o n s , t h e A G a n d t h e P P D A s h o u l d d e t e r m i n e t a r g e t s f o r t h e n u m b e r , v a l u e a n d s e c t o r s o f p r o c u r e m e n t a n d d i s p o s a l e n t i t i e s a n d a c t i v i t i e s t h e y u n d e r t a k e a n n u a l l y X A G a n d P P D A T h e A G a n d t h e P P D A s h o u l d a l s o w a n t t o e n s u r e t h a t t h e r e i s r e p r e s e n t a t i v e c o v e r a g e w i t h r e s p e c t t o p r o c u r e m e n t a u d i t s o f l o c a l g o v e r n m e n t p r o c u r e m e n t X A G a n d P P D A A s s u r e t h a t t h e m e c h a n i s m s a r e i n p l a c e t o f o l l o w t h r o u g h o n p a r l i a m e n t a r y d i r e c t i v e s t o s a n c t i o n A c c o u n t i n g O f f i c e r s w h o h a v e b e e n i d e n t i f i e d a s h a v i n g a l l o w e d o r h a v i n g b e e n i m p l i c a t e d i n m i s - p r o c u r e m e n t a n d o t h e r c o r r u p t o f f e n c e s i n t h e p r o c u r e m e n t p r o c e s s X M o F P E D a n d G o U C l a r i f y t h e m a n d a t e s o f t h e P P D A , t h e I G G a n d t h e C I D w i t h r e s p e c t t o r e s p o n s i b i l i t i e s f o r r e c e i v i n g a n d i n v e s t i g a t i n g c o m p l a i n t s , c a r r y i n g o u t i n v e s t i g a t i o n s , p r o s e c u t i n g c a s e s , e t c . X G o U G o v e r n m e n t s h o u l d e n a c t a n d m a k e e f f e c t i v e t h e P r e v e n t i o n o f C o r r u p t i o n A c t X G o U G o v e r n m e n t s h o u l d e n a c t a n d i m p l e m e n t t h e R i g h t o f A c c e s s t o P u b l i c I n f o r m a t i o n l a w X G o U G o v e r n m e n t s h o u l d e n a c t a n d i m p l e m e n t t h e j o i n t W h i s t l e b l o w e r P r o t e c t i o n a n d Q u i T a m l a w X G o U P i l l a r 4 : I n t e g r i t y o f P u b l i c P r o c u r e m e n t S y s t e m : T h e P P D A s h o u l d p a r t i c i p a t e a c t i v e l y i n t h e I n t e r A g e n c y F o r u m a n d p r o a c t i v e l y c o n t r i b u t e t o t h e s e c t i o n s o f t h e G S P O A t h a t r e l a t e t o p u b l i c p r o c u r e m e n t a n d p u b l i c d i s p o s a l . X P P D A Page 46 U g a n d a 2 0 0 4 C P A R – A n n e x e s - 4 6 - J u n e 2 0 0 4 T h e f o u r p i l l a r s o f s o u n d p u b l i c p r o c u r e m e n t R e c o m m e n d e d A c t i o n s S h o r t t e r m ( 0 - 2 y e a r s ) M e d i u m t e r m ( 2 - 4 y e a r s ) R e s p o n s i b l e T h e I G G a n d t h e P P D A s h o u l d c o l l a b o r a t e ( w i t h o t h e r s t a k e h o l d e r s ) t o c o n d u c t r e g u l a r N a t i o n a l P u b l i c P r o c u r e m e n t S u r v e y s . X I G G , P P D A a n d o t h e r s t a k e h o l d e r s , i n c l u d i n g c i v i l s o c i e t y T h e l i s t o f f i r m s t e n d e r i n g f o r g o v e r n m e n t c o n t r a c t s a n d t h e r e s u l t s o f a l l b i d e v a l u a t i o n s a n d c o n t r a c t a w a r d s a b o v e a c e r t a i n t h r e s h o l d v a l u e s h o u l d b e p u b l i s h e d q u a r t e r l y a n d p o s t e d o n t h e P P D A ’ s w e b s i t e X P P D A I m p l e m e n t a s y s t e m o f m o n i t o r i n g , r e p o r t i n g , a n d c o n t r o l l i n g t h e k e y e l e m e n t s o f t h e p u b l i c p r o c u r e m e n t p r o c e s s o n t h e b a s i s o f t h e i n d i c a t o r s d e v e l o p e d i n i t i a l l y u n d e r t h e a e g i s o f t h e D E I , p r e s e n t e d b y t h e S e c r e t a r y t o C a b i n e t t o t h e C o n s u l t a t i v e G r o u p M e e t i n g i n 2 0 0 1 , a n d s t r e n g t h e n e d b y P P D A i n e a r l y 2 0 0 4 X P P D A a n d M o F P E D Page 47 Uganda 2004 CPAR – Annexes -47- June 2004