Box 7.1 Procurement time: How long does it take to get a contract approved? The short answer: Nobody knows. The Bank does not have a system that can give a clear answer to this simple but important question. What we do know, however, is surprising. First, contrary to general perceptions, the procurement process in Liberia is substantially faster than the average for the Africa Region. Second, procurement staff do not appear to be the bottleneck, as they account for significantly less processing time than do task team leaders. The findings are based on an IEG review of recent procurement transactions under all active Banksupported projects in Liberia, as recorded by the Procurement Tracking System. On average, a request for no-objection in Liberia takes 50 days to process—31 days on the part of the Bank and 19 on the part of the client. In comparison, the average for the Africa Region is 95 days (54 days on the Bank’s part and 41 days on the client’s). These figures however, cover only the time it takes to complete a procurement transaction, for example, from initiation to contract signature. A more accurate picture emerges when the “down time” between steps is included. By this metric, it takes about six months (181 days) on average to get a contract approved in Liberia. This is much better than the average of more than a year (387 days) for the Africa Region as a whole. It is important to note, however, that procurement transactions in Liberia are largely handled by project management units—not by the regular government system, which is being rebuilt, but is not yet complete. This may also to be true in many countries within the region. However, the reliance on external help in a parallel system may be greater than average in Liberia. In addition, the perception that delays are mainly attributable to procurement staff is not supported by the data. When the Bank has procurement responsibility, the Task Team Leader who deals with technical issues accounts for about two-thirds of the time, with procurement staff who handle more procedural matters accounting for the remaining one-third. Source: IEG.
the major infrastructure projects, roads in particular, require well organized, financially solid and technically capable contractors, the local underdeveloped industry needs to handle smaller projects so as to build their capacity and ability to plan and implement. Smaller projects, such as maintenance and smaller physical works, could be specifically designed. Indeed, there is discussion among development partners on how to introduce these. However, as mentioned, the major projects requiring skills and expertise will be carried out through international competitive bidding (ICB), for example through output and performance-based road contracting (OPRC). This will also benefit smaller local contractors providing them with basic needs to increase their profit margins and do smaller works. The longer projects, such as OPRC for 10 years, provide an excellent opportunity for such developments. Finally, opportunities to involve civil society in monitoring public procurement could usefully be explored in order to help strengthen governance and curb corruption.
Notes 1. Among the key documents detailing recommended practice in supporting FCSs are: the 2002 LICUS Task Force Report, the 2005 Fragile States Report, and the 2011 World Development Report on Conflict, Security and Development.
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Liberia Country Program Evaluation: 2004–2011