Jamaica
Three International Financial Institutions (IFIs) have endorsed the Government of Jamaica’s new electronic procurement system. Electronic procurement or e-procurement is the process of requesting, ordering and purchasing goods and services digitally utilising a system accessible by registered users.
The innovation – which was implemented to support the process of procuring goods, works and services online – will enable the state to more efficiently access funding from the Caribbean Development Bank (CDB), the Inter-American Development Bank (IDB) and the World Bank (WB) for projects financed by these entities.
According to Douglas Fraser, Head, Procurement at CDB, “This is a significant milestone for the Government of Jamaica and the region as it will lead to improvements in efficiency and transparency while also lowering the transaction costs for all state projects financed by IFIs. The Bank endorses this modernised approach adopted by one of its Borrowing Member Countries (BMCs) as we continue to support and strengthen the procurement ecosystem in all 19 BMCs.”
Highlighting the need for cooperation and commending the improved efficiency, Lilia Burunciuc, Country Director for World Bank Caribbean noted, “this endorsement is the anticipated result of successful cooperation among IDB, CDB and World Bank Caribbean to increase efficiencies in development projects. It will ensure more transparency in the procurement of goods, works and services in projects financed by the three institutions and ultimately, accelerate Jamaica’s ability to meet development needs.”
This advancement will impact current and future projects; improving procurement for over USD329 million in funds currently available to the Government of Jamaica for various development initiatives. In 2015 Jamaica launched its e-procurement system, becoming a pioneer in the Caribbean by adopting e-Government Procurement systems with a range of functions, including: publication of opportunities and transactional platforms, electronic submission of bids, e-Tendering, notification of awards, and supplier registries. The agreement to use e-Government Procurement on all the development projects financed by the three MDBs will increase transparency and the expeditious implementation of projects, channeling much-needed resources to address the country’s needs. The implementation of the agreement by all the three MDBs to use e-Government Procurement systems on development projects in national and international competitive processes, means the reduction of transactional costs for Jamaica, as well as for banks, in relation to project procurement preparation, execution, and monitoring. Jamaica is one of the countries with the highest number of e-GP modules implemented in the Latin America and Caribbean region.
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Births Virgin Island
On the 4th October I was pleased to publish the first Quarterly Review of the Framework for Implementation of the Recommendations of the Commission of Inquiry Report and Other Reforms which was agreed between the UK and Government of National Unity. The Quarterly Review is a key part of the process for monitoring the implementation of the COI recommendations.
The Review was sent to the UK for consideration by Ministers. I have now received a letter in response from the Rt Hon Jesse Norman MP, Minister for the Americas and Overseas Territories and as I promised on 4 October, this will now be published and shared with people in the BVI so that they can see it for themselves.
The first and most important point that was made in in the Quarterly Review was that there has been good progress in a number of areas, with work underway on most recommendations. The Review also noted that I was pleased with the overall constructive engagement and partnership I have had with the Premier and Cabinet. Most of the deadlines in the Framework have been met on time, and where there have been delays I was satisfied that this has been for legitimate reasons.
So while there is a long way to go in implementation of the COI recommendations to achieve the deep rooted reforms in governance that are required, I am pleased to stress that there has been a good start in many areas with many positives. To take a number of examples: the Audit Act has been amended to make failure to cooperate with, or impede, the work of the Auditor General a criminal offence; the recommended Police investigations are underway; the Auditor General is conducting the recommended audits; and responsibility for assistance grants has been transferred to the Social Development Department with a Review of the welfare benefits and grants system now taking place with the support of UNICEF.
The Review also raised some concerns in particular areas, including on the continued use of tender waivers and on making the Register of Interests for members of the House of Assembly more openly available.
Let me address the tender waiver issue in some more detail. The COI found that there was no open tender in two-thirds of all contracts valued over $100,000 between January 2019 and April 2021. This, combined with contract splitting into petty contracts, was a disregard for good governance, transparency and accountability. That is why in the Framework document it was agreed that Cabinet documents relating to tender waivers should be published.
Unfortunately such waivers continue to come forward to Cabinet. I recognise that many of these to date have been legacy issues arising from the practices of the previous administration. But it remains important that we avoid tender waivers as much as possible and that the commitment to publication is kept.
Since the Framework document was agreed the new Public Procurement Act has become law. Tender waivers are no longer required, and the Act permits single source procurement in specified circumstances. But single source procurement means no open tendering and the Act expressly makes clear that such procurement should only take place in exceptional circumstances. So looking forward, if two thirds of all contracts simply become single source procurements, rather than tender waivers, then little will have really changed. I very much hope that will not be the case and I will continue to work constructively with Government to support open tendering as much as possible and to ensure that the new Public Procurement Act is fully complied with.
On the Register of Interests the concern set out in the Quarterly Review was that the amendments passed by the House of Assembly mean that the Register of members’ interests has been made public only in a highly restricted way, with persons wishing to view the Register having to make a written application and pay a fee. They would then only be allowed to view the Register in the presence of the Registrar and would not be permitted to take any kind of copy or even notes of the contents, and fined for reproducing the contents. My hope is that the Government and members of the House of Assembly will reflect further on their amendments and whether changes might be made to the Act which would more fully reflect the principles of transparency set out in the Framework document. For my part I will be happy to work constructively with the Government towards that end.
Let me now turn directly to the response received from the Minister for the Overseas Territories.
As you will see, in his letter Minister Norman expressly recognises that there has been some real progress in implementation of the COI recommendations and that most deadlines have been met. He was also pleased to learn of the Premier and Cabinet’s overall continued commitment to driving delivery in a constructive partnership.
The Minister also notes the concerns expressed in the Quarterly Review, including in relation to tender waivers. He notes that the Framework document contained a clear commitment to ensuring that “tender waivers are only agreed in exceptional, unavoidable cases, and which must be explained publicly” and that under the Public Procurement Act single source procurement must only be used in exceptional circumstances. The Minister makes clear his expectation that there will be immediate and substantial improvement in this area while recognising that there may be some legacy procurement issues from the previous administration which should be addressed proactively and promptly. The Minister asks me to submit a report at the start of December on the issue of tender waivers and single source procurement so that he can assess progress ahead of the next Quarterly Review in the public interest.
The Minister concludes his letter by agreeing overall that progress in this initial period of COI implementation has been sufficient to continue the current approach. But he notes that it is vital this is maintained, with commitments and deadlines met. And he notes that the people of the BVI want and deserve reform and that the UK Government remains committed to taking the necessary actions to ensure that they see that reform delivered.
Further to his letter, I’m pleased to let you know that Minister Norman is planning to visit the BVI next Thursday and Friday, 27 and 28 October. This will be an excellent opportunity for the Minister to meet the Premier, Ministers and members of the House of Assembly, and other key interlocutors and to listen to their views.
I know that the Minister’s goal is to see a successful, thriving, well-governed BVI. That is a goal which I share as Governor and to which I remain committed. There is more to be done, and more hard work ahead. But if we continue to work together to implement the COI recommendations, then I am confident this can lead to the improved governance, transparency and accountability that the people of the BVI deserve.
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Guyana
As Guyanese prepare to vote in Local Government Elections (LGE) early next year, there are calls for greater oversight of the town and neighbourhood councils to cut out graft and other forms of corruption.
In Quito, the capital of the sister South American nation of of Ecuador, there is an independent mechanism called Quito Honesto that keeps a watchful eye over that municipality of more than 2 million persons. The head of Quito Honesto is appointed by the Mayor who can be investigated by that body or police called in if there is sufficient evidence.
President of the Metropolitan Commission for the Fight Against Corruption Dr Mauricio Riofrio Cuadrado said the aim is to inculcate a public integrity culture of ethics, transparency among the citizens. He said there must be determination by elected officials to push an agenda to fight corruption which is inherent to humans. “It can be mitigated with enough political will with honesty and transparency,” he told Latin American and Caribbean journalists who participated in a Regional Infrastructure Tour.
Local Government Elections are scheduled for March 13, 2022.
However, in Guyana there is no such oversight but the Central government periodically cites a number of local councils for inefficiency, mismanagement and alleged corruption.
But the Mayor of Georgetown Ubraj Narine believed that short of appointing its own watchdog the municipality of approximately 25,000 persons should seek out civil society to oversee governance. “That shouldn’t be for the civil society alone. I agree with such a group; civil society should be part of the government as well and I believe that the private sector should also pay keen attention because of civil society is necessary for accountability and transparency ultimately,” he said. Mr Narine said he favours such a committee should have the powers to investigate allegations of corruption and have the power to sanction errant office holders.
At City Hall, there is a Tender and Procurement Committee made up of five to seven councillors and the City Engineer, the Head of the Solid Waste Management Department and the Town Clerk. Mr Narine, however, said the opposition People’s Progressive Party Civic City Councilors seldom attend committee meetings but they are provided with the agenda and minutes. In the end, he said it is the full council that has to scrutinise and approve the reports from the municipality’s Tender and Procurement Committee. “We can’t let one or two councillors from the other side hold back the work of the council and that report has to go to full council for a majority vote,” he added.
Mr Narine is not optimistic that Central Government will amend the relevant local government laws to allow for the creation of an oversight and investigative body in the City, nine other towns and 70 neighbourhood councils countrywide. He is using, as a barometer, the apparent refusal of the Minister to sign off on council-approved by-laws for stiffer penalties against litter bugs. “We cannot do that internally.
Minister of Local Government Nigel Dharamlall was not immediately available for comment.
However, President of the Transparency Institute of Guyana Inc. Frederick Collins disagrees that a representative of his organisation should be appointed to provide such an oversight over the award of contracts by town and neighbourhood councils unless there is a change in legislation. “It has to do more with the will to move towards a meritocratic society than anything else. All activities where authorities are concerned in this country appear to be to be the need to reward materially friends, family and those who have in some way awarded favours to the organisation and that motive is a killer for any involvement by anybody else,” he said. Mr Collins forecast that only the reason that civil society will be rejected is because there are “too many eyes”.
Mr Collins said there are already mechanisms in place to “lean on and depend on” if the political actors cease their control of institutions in order to hide the truth and increase public trust.
Quito Honesto’s Dr Cuadrado said there is a procurement system for projects and services that cost more than US$1 million. After the award, there are follow-up reviews and reports to identify and resolve flaws. “We are trying to stop the landslide and the disaster that corruption brings and this is a way of doing that,” he said.
Quito Honesto also receives real-time complaints, including videos with their smart phones, confidentially.
Quito Honesto is funded by the municipality, its head is appointed by the Mayor and representatives are drawn from the university, civil society and the business community.
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Guyana
As he appealed for small contractors countrywide to tap into the opportunities afforded to them under the laws of Guyana, National Procurement and Tender Administration Board (NPTAB) Chief Executive Officer Arvind Parag says that nearly 80% of government contracts to date have gone to small and medium-sized businesses.
However, he explained that while the percentage number of overall contracts seems much, those contracts only account for about 10% of the overall government spending budget since mega projects account for about 90% of spending.
“The law says 20% for small contractors and from our data that you have there, as at October 20, 2022, we have awarded 1271 of 1591 tenders to SMEs [small and medium-scaled enterprises]. That accounts, in percentage to 79.89%. So we have long surpassed the required percentage,” Parag told the Stabroek News in an interview.
“But in terms of value, although we awarded 89% of contracts to SMEs, in terms of contract sum or value, we can only achieve 10% of the total spending going to SMEs, due to mega projects …because the SMEs do not meet the minimum requirement for. And if they did they won’t be SMEs,” he added.
Parag said that while the percentage numbers for small contracts has been achieved, it is NPTAB’s hope that more small businesses across the country bid for contracts. This, he reasoned, would not only help the competitive bidding process, but it will also increase the overall spending sums for small contracts.
To attract more small and medium-sized businesses, he said that NPTAB itself has set out strategies and has this year been working to achieve these.
“Regions are encouraged to engage with small and medium-sized businesses for quotations. We encourage community participation, especially in the hinterland communities. It makes no sense that you have a bridge or road and a contractor from another area has to go in to do it. The communities would see who can participate and they can bid. That way, money goes directly back into the communities,” he said.
In this way, he added, community oversight is also increased since persons are familiar with who is doing the project and can hold them accountable.
When procuring entities have mega road projects, they are advised to “segregate those into individual lots “so that SMEs can bid for specific lots and increase their chances at being awarded those.
For road projects below $20 million, NPTAB has a list of over 300 small and medium-sized contractors from across the regions and they are invited to bid for those.
Listing current and upcoming mega projects, such as the New Demerara Harbour Bridge, the Linden to Mabura Road, the Corentyne Highway Expansion project, New Water Treatment Plants building, Linden to Lethem Bridges project and others, Perag said that large businesses that win those contracts are encouraged to sub-contract small contractors for services that they can provide within those contracts.
A 5% margin of preference is also given to small businesses when bidding for contracts.
Guyana’s Small Business Act provides for 20% of the procurement of goods and services to be set aside for small contractors. Given that this did not include works, former Public Procurement Chairperson Carol Corbin had pointed out that small contractors would have had to still compete with big contractors for all construction projects. She had urged that the laws be amended to include works.
Following promises to small businesses since late 2015 that they will able to access at least 20% of government’s procurement of goods, services and works, the Small Business (Amendment) Act 2020 was passed in the National Assembly in February of last year.
While it was the now opposition that had first taken the Bill to the Parliament, it boycotted the sitting that saw the eventual passage of the amendment.
Minister of Tourism, Industry and Commerce Oneidge Walrond had told the House that the amendment might be viewed as onerous and bureaucratic with small businesses having to now meet three criteria instead of two before qualifying for the status.
“[This] makes it mandatory and levels the playing field for all in the sector and eliminates the disadvantages,” she said.
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Belize
The Caribbean Development Bank (CDB) has committed USD150,000 to assist with financing a feasibility study for the Government of Belize to assess the potential of generating electricity from biogas collected from sewage treatment facilities.
Biogas is a form of renewable energy produced by breaking down organic matter such as agricultural waste, food waste, manure, and sewage. The project supports the Bank’s thrust to increase energy security in its Borrowing Member Countries (BMCs) by promoting the use of renewable sources for more affordable and stable energy costs.
“Many of CDB’s BMCs exhibit an over-dependence on imported petroleum and petroleum products for power which consumes a large portion of their foreign exchange earnings and increases their vulnerability to external shocks,” Director of the Bank’s Projects Department, Mr Daniel Best explained.
“The development of utility scale renewable energy (RE) infrastructure is critical for correcting this imbalance and in-depth studies such as this will provide data to guide the integration of sources such as biogas and biofuels into the region’s energy mix and the findings can inform the development of future energy projects.”
The feasibility study will involve waste lagoons at three municipal sewage plants in Belize where an Anaerobic Digestion (AD) process will be used to generate energy from biogas. The research will assess the quantum of biogas available at the facilities, the most efficient technology options for energy generation, and the financial viability of capturing and converting the green fuel to electricity. Considerations will include any potential for climate risks, and possible social and environmental impacts.
The project is also a knowledge sharing initiative as it includes the development of an AD Assessment Tool Kit which will guide the region’s utility companies in evaluating the biogas potential of waste-water facilities.
Under its Climate Resilience Strategy, CDB is supporting energy sector transformation initiatives and the increased use of renewable energy by its BMCs as a means of facilitating the region’s sustainable energy transition.
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