September 28 2006 SUMMARY REPORT The World Bank Group
INTRODUCTION The Nigerian Economic Summit Group (NESG) in collaboration with the Nigerian Exports Promotions Council (NEPC) and in cooperation with the World Bank Group (WBG) and the Manufacturers Association of Nigerian (MAN) organized a one-day workshop on World Bank Procurement Procedures to avail Nigerian companies of business/investment opportunities provided by the WBG and how the Bank can better engage companies on development issues of common interest to the private sector. The Procurement Workshop The workshop was aimed at firms interested in WB procurement; targeting participants from the SMEs, Manufacturing, Finance, Services (Consultants), Goods (Contractors and Suppliers), and Construction. Specific objectives included: to sensitize the Private Sector on business/financing opportunities offered by the WBG; to sensitize the Private Sector on current Procurement Reforms; to increase the competitiveness of Nigerian enterprises. Participants (over 100) included Public Sector Organizations, Business Associations, Professional Associations, Media, Academic Institutions involved in Procurement Training: Collaborating Institutions: World Bank Group (World Bank, IFC); NEPC; MAN SESSION ONE The workshop was chaired by Senator David Dafinone and the Keynote address was delivered by Mrs. Gladys Sasore, DG, NEPC & Special Adviser to the President on Export Matters. Other Speakers included Mr. Jide Mike, MAN; Prof Kunle Wahab, Snr Special Adviser to the President/Head, BMPIU; Mr. Bayo Awosemusi, Procurement Specialist, World Bank; Mr. Nanzing Ndem, Director Business Gold Ltd; Mr. Akin Oluwole, CEO, AT & S Limited; Mr. Samuel Afemikhae, CEO Afemikhae & Co; and Ms Deborah Okafor, NESG PSLO to the WBG in Nigeria. In her keynote address, Mrs Sasore emphasized the importance of the workshop and explained that the WBG has several opportunities for the private sector. It now remains for the companies in Nigeria to improve their standards of procurement to enable them participate and benefit fully in the wide range of opportunities offered by the WBG. She recommended that adequate sensitization is important for Nigeria businesses to increase their competitiveness in international business. She further noted that sensitization is not an end in itself, Nigeria companies have to act and respond appropriately to invitations to bid. 2
Mr Jide Mike delivered a presentation titled Private Sector View of Current Procurement Practices in Nigeria. He introduced the concept of procurement and noted that procurement in Nigeria is characterized by rigorous bureaucratic processes and excessive politicization, therefore making the exercise cumbersome to prospective bidders. He believed that the Nigerian Private Sector is not deeply rooted in the procurement system as a result of lack of transparency, hoarding of information, preference for foreign contractors, misinterpretation of FG local content utilization requirement, lack of information, inappropriate perception of the WBG as relating only with the FG and low private sector participation and interaction with the WBG. He recommended the following: sensitization be extended to form business relationship (i.e. partnership of the NESG, MAN, NEPC, BMPIU, WBG) with the private sector for Nigeria companies to source information on business and investment opportunities of the WBG, information, material on executable projects be publicized, stipulated quality be fully discussed with potential bidders, flexible delivery method, and flexible funding arrangements be provided by the WBG Prof Kunle Wahab delivered a presentation titled Implementation of Procurement Reforms in Nigeria. He identified several pre-due process procurement problems - manipulation of procedures for awarding and executing public contracts leading to major leakage in public treasury, project abandonment, ghost projects, and denial of social amenities. The critical challenges in the Nigerian procurement procedures and in the management of public resources led to the establishment of the Budget Monitoring and Price Intelligence Unit (BMPIU) in 2001 to implement a robust public procurement reform programs and to formulate, develop, undertake research in all areas to determine need for information and project cost. While noting that there have been several improvements in public procurements since the establishment of BMPIU, he recommended that the other tiers of government should emulate the reform to enhance and improve living standards of every average Nigerian. He opined that this would enable prudence in financial management, competition and transparency in public spending. 3
SESSION TWO Session two focused on practical aspects of procurement. Mr. Bayo Awosemusi, procurement specialist at the World Bank Nigeria delivered a presentation on World Bank procurement policies and procedures. The next three presentations were on Practical Issues in preparing Public Tender from a Contractor s, a Supplier and a Consultant s Perspectives, the presenters were Mr Nanzing Ndem, Mr Akin Oluwole and Mr Afemikhae respectively. Finally Ms Okafor delivered a presentation on the Role of World Bank Private Sector Liaison Officer (PSLO) to further elaborate on how the PSLO network bridges the relationship between the Private sector and the WBG. 4
RECOMMENDATIONS bidding document must be clearly understood, bill of quantity should be priced by a competent quantity surveyor, rates should be competitive, prospective bidders must obtain and attach the qualification documents to the bid such as Certificate of Incorporation, BID security, Company Profile, References, Memorandum of Article of Association, tender documents must be properly packaged, prospective bidders should maintain functional offices and secretarial services bidders should avoid lobbying during evaluation period prospective bidders should ensure that the meet the eligibility criteria, corporate seal and signature is very important need for good banking relationship small organizations can form joint ventures to take advantage of a bidding opportunity timely and effective responsiveness to important aspects of TOR, evaluation of EOI prior to submission, Continuous search for information: o World Bank project site o Development business journal o Direct enquiries from project offices o FG tender journals o Dailies, Bill Boards, TV At the end of the workshop, it was recommended that the NESG should sustain and strengthen this dialogue process between the WBG and the Nigerian Private Sector. For more information on the Nigerian Economic Summit Group, please visit www.nesgroup.org To download Presentations delivered at the workshop, please visit http://www.nesgroup.org/programmes/xhome.aspx?pcode=33 5