Government procurement goes online

Kampala. The procurement of big ticket and small projects from government is set for a complete overhaul as the service goes online. The Public Procurement Disposal of Public Assets Authority (PPDA), will this month launch the eGovernment Procurement portal, a web-based system that will see a migration away from the hand delivery of bids to government agencies.
At least 60 per cent of government revenue is spent on various projects, most of which are done through the public procurement process.
Ms Cornelia Sabiiti, the executive director PPDA, told reporters on Monday that the new system will reduce the cost of procurement for both the government and service provider.

“eGP will ensure transparency by allowing technology rather than people to do some of the processes, eliminating the interface between suppliers and Public Procurement and Disposal Entities (PDEs), which has been one of the commonest mediums that has allowed corruption to fester,” Ms Sabiiti points out.
“When you open up and take the process online, the temptation to pad people in the system for favours becomes harder. This makes it cheaper for the service provider because all bids are available online and will be looked at fairly,” she adds.

Uganda’s public expenditure on development projects in 2015/16 is expected to rise to Shs9.7 trillion from Shs5 trillion this financial year 2014/15.
According to PPDA, an efficient eGovernment Procurement could save the country between 5 per cent and 10 per cent of the entire size of the development budget.

Challenges from current process
Some of the criticisms of the current process are inflated costs by service providers, a long and painstaking process, lack of transparency and a fertile ground for corruption.
Projects such as NSSF’s Pension Towers along Lumumba Avenue have stalled because of lengthy procurement processes. There have also been appeals against awarding of contracts to Synohydro for the Karuma Hydro Power Project and the Standard Gauge Railway to China Habour and Engineering Company.

Ms Sabiiti says the time between putting in the request for bids and actual awarding of the contract is expected to reduce.
“The time between placing an advert calling for bids and evaluation takes about three months. To government, this is quite a long time as it is the entire first quarter of the financial year. If through e-procurement this time can be reduced to much less than two months, then this is plus. We have situations where the financial year is ending and the initiated procurement process is not complete,” she adds.

Benefits for public
The general public will also be able to access the “Government Procurement Portal” in terms of the planned procurement plans of each government department, successful bids, the cost of the bids, blacklisted bidders and the database of all registered service providers.
PPDA joins government agencies such as URA, which adopted e-tax five years ago and the Uganda Registration Services Bureau (URSB) that started the process of computerisation in 2013/14.

The rollout of the online procurement model will only start with a few government entities and thereafter, it will be a phased approach at least until 2019.
Ms Sabiiti, however, throws caution in the wind by noting that taking procurement online is not “a magic bullet to end corruption because it doesn’t take-away the fact that we are human beings.”

Why e-government procurement?
e-government procurement system designed to empower public bodies to better manage public procurement.
Matia Kasaija, Uganda’s state minister for finance (planning) added: “E-government procurement is expected to increase transparency in public procurement. Lack of transparency breeds corruption, unfairness, lack of competition and ultimately the government does not achieve value for money as a result of paying more for a service that could be delivered at a cheaper price.”
If fully utilised, the e-procurement system would “empower our people and change their lives in ways we could not have imagined even two decades ago,” Mr Kasaijja added.

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