§  Transparency and Accountability - to fight waste and corruption

§  Fairness/ Equal opportunity for all in the bidding process

§  Integration of the public procurement system with public financial management framework`

§  Providing a more attractive investment climate by lowering risk

§  Maximising competition to satisfy customer needs and ensure value for money

§  A streamlined procurement process through the gradual adoption of electronic commerce

 Challenges of the private sector in PPR 

 §  High cost of doing business

1.        Samples cost a lot of money, over $500

2.        Bank guarantees tie down the service providers’ investment capital

3.        The cost of buying the pre-qualification document is very high.

4.        The price quoted is always fixed.

5.        The requirement for a tax clearance certificate

6.        High interest rates (e.g. 18% – 30%)

§  Financial Framework 

1.        Some national bidders find the 10% requirement for bid bond too high.

2.        Capacity to raise credit, bid bonds and securities from local banks is lacking.

3.        Bid securities are expensive and prohibitive for example; certified cheques.

§  Low capacity of the private sector to profitably participate in PPR.

1.        Most Service Providers can hardly understand bid documents.

2.        Procurement procedures are irrational and cumbersome.

3.        Unfamiliar procedures render the process open to abuse.

§  Corruption

1.        Competent private enterprises are disqualified under false allegations.

2.        The stringent prequalification criteria

3.        Rigid procurement process.

4.        Open bidding is not favourable to the private sector.

5.        Poor communication hinders  transparency

6.        The absence of a law that provides protection for intellectual property

7.        The presence of counterfeit products, to mention just a few.

 LESSONS LEARNED AND WAY FORWARD

 § The need to build capacity for the private sector coupled with enforcement of rules and concerns is still great. (H)

§ There is need for a policy on refund on investment capital after a contract has been cancelled.

§ There is need to build private sector capacity in fighting corruption.

§ The need for laws and policies governing intellectual property.

§ The need to scrap internal opening of bids.

§ The private sector needs a dialog and networking platform

 We UNCCI as the coordinating secretariat for the private sector both formal and the informal sector, we are confident to fully support the Private sector as it leads this country and region to better days in the future.

For more details contact UNCCI offices, Plot 1A Kiira Rd, P.O. Box 3809, Kampala, Uganda.

Tel: +256753503035