WB gives $10m more funds for e-GP

The World Bank will provide $10 million more funds to Bangladesh to improve capacity of the existing electronic public procurement system to accommodate more tenders.
The second additional financing to the Public Procurement Reform Project II (PPRP-II) will help set up a modern data centre with 200 terra-byte storage capacity and a mirror site to replace the existing lower capacity data centre.
The new data centre is expected to help the e-GP system keep pace with the growing demand from public procurement entities.
With robust security features and 180 times more capacity, the new centre will offer storage for 8.6 million tenders and support about 325,000 registered bidders.
A loan agreement regarding the second additional financing was signed between the Washington-based lender and Economic Relations Division (ERD) at the city’s NEC conference room on Monday.
ERD Additional Secretary Kazi Shofiqul Azam and WB’s Acting Country Director Rajshree Paralkar signed the deal on behalf of their respective sides.
With this, the WB’s total loan for the project soared to $68.10 million. The project was launched in 2007 with $23.6 million financing from the WB. Later, the project was extended in 2013 when the lender provided $34.5 million in its first additional financing for the project.
“The additional financing will help further strengthen the capacity of the procurement system and meet the growing demand of the procurement entities. This in turn will improve the country’s investment climate and accelerate the pace of poverty reduction,” Rajashree said.
Since introduction of e-GP system in 2011, transaction cost went down and tender processing time was reduced from 51 days in 2012 to only 29 days in 2015, informed Kazi Shofiqul Azam.
The country has processed more than 55,000 government tenders online at a total value of $5.8 billion and registered 21,000 bidders under e-GP system since 2012, he added.
Since its inception, the project rolled out procurement and online performance monitoring systems in four public procuring entities covering transport, local government, water, and power that together spend about half of the country’s annual development budget.
The coverage is now increasing very fast with about 200 public sector organisations already registered with the system.
The new financing will also support the government in conducting professional certification courses and trainings on public procurement.
The project has helped 89 officials to receive member status and professional diplomats at the UK-based Chartered Institute of Procurement and Supply, while 84 have completed master’s degree in procurement.
The project has facilitated training on public procurement for about 2,700 participants, ensuring that over 85 percent of the four major procuring entities have at least one trained staff.