FOR GOV'T TO GOV'T DEALS TO
COMBAT CORRUPTION
WB to help set uniform
procurement rules
By MAX ESTAYO
CLARK-The World Bank will help the government
set up a uniform set of procurement rules to stop corruption in
projects either funded by the government, and multilateral and
bilateral lenders.
Budget Secretary Rolando Andaya said the new
rules are expected to be in place within the year.
"It's about time we come out with uniform
rules. The WB is setting the pace and benchmarks" Andaya said at
the conclusion of the two-day Philippine Development Forum at
Fontana Convention Center here.
The harmonization of the rules hopes to close
the gaps in the procurement law, which have given opportunities
for corruption.
The existing rules cover only
government-private sector transactions, or government projects
funded by multilateral institutions.
There are no rules for
government-to-government projects, or those projects of the
government funded by another government, an example of which is
the botched national broadband project funded by the Chinese
government.
Bert Hofman, country director of World Bank
and co-chair of the PDF, said the crafting of the uniform
guidelines is a culmination of a series of debates on how the
Philippine procurement law can be improved.
"There has been a debate on the procurement
rules and quality, and the alignment of Philippine rules with
those of international agencies. The Philippine procurement law
passed two years ago is a very progressive law and very much in
line with those. A lot of the projects we financed used that law
for our procurement, but there is international competitive
bidding that we need to harmonize with," Hofman.
Andaya said the new rules would include rules
on bid ceiling and how funds will be used in the process, among
others.
"These are some of the issues that have been
brought up by the different partners. Issues of bid ceiling,
exclusion of Philippine contractors, etc., these have not been
included before," he said.
Andaya said the government would form a
committee to set the rules that will have members from the
different development partners, as well as representatives from
the civil society.
In the meantime that the guidelines are being
crafted, Andaya said any loan assistance will have to conform to
World Trade Organization procurement rules.
"Any loan assistance at this point should
conform with WTO rules. Some of WB projects coming in are in
compliance with these rules," Andaya said.
The government depends on official
development assistance from its multilateral and bilateral
partners to fund key projects including those on infrastructure.
The loans are long maturing and cheaper than commercial loans.
This year, the government is sourcing $1.5
billion in ODAs for its various projects.
During the PDF, the annual dialogue between
the Philippines and its development partners, the government
presented over P200 billion of projects in road, power, rail and
water for possible ODA financing.