EU pushes increased use of e-procurement

MANILA, Philippines–The head of the European Union Delegation in the Philippines is pushing for the wider adoption of e-procurement in the country, as this can contribute to reducing corruption and increasing the level of transparency in government contracts.

In a forum on Tuesday, European Union Ambassador Guy Ledoux said the EU strongly supported “e-procurement,” particularly for government-related projects.

More than just a growing trend globally, the use of e-procurement in bidding out projects may help make local public procurements more open or transparent, competitive, and nondiscriminatory, thus providing a more level playing field for all interested parties that could, in turn, attract more foreign direct investments (FDIs) in the Philippines.

“The Philippines has made progress in terms of attracting FDI. Inward FDI stocks increased from 10 billion euros in 2004, to 25 billion euros in 2013. I am proud that most of the investment stocks in the Philippines have their origin in the EU, but admittedly, this is only a fraction of the over 200 billion euros worth of FDI that European companies invest every year around the world,” Ledoux explained.

“However, some of these companies are reluctant due to problems industry faces with procurement: companies encounter problems with tendering and bidding processes that seem to work against foreign bidders. Problems include short timeframes between publication of tenders and bid submissions which do not allow foreign bidders to complete all the formal requirements, for instance the certification of eligibility and translation of documents,” he disclosed.

Add to that, Ledoux added, are the complex formal requirements such as certifications and business licensing and disclosure requirements that include details of similar contracts performed in other countries or details on prices are deterrents for participating in tenders.

The Philippine government, for its part, has claimed to have had significant achievements in reforming government procurement processes, Budget Secretary Florencio Abad said on Tuesday, adding that the government was well aware that something “as rudimentary as public procurement can influence the Philippines’ investment and economic prospects.”

“Procurement is such a contentious issue in governance, and no wonder: the system we inherited is notoriously unwieldy, prone to irregularities, weighted by delays, and bound up in a seemingly infinite length of red tape. Mention public procurement to anyone who’s had some remote experience with it, and you’ll find few people who’ll have anything good to say about it,” Abad said in a forum on Tuesday.

“To date, we’ve initiated much-needed changes in the procurement system, with a focus on clearing up procurement processes so they’re fairer, more transparent, and open to public engagement. For example, we’ve expanded the coverage of the Philippine Government Electronic Procurement System, or PhilGEPS, so it could yield more information on the different phases of the procurement process,” he added.

According to Abad, PhilGEPS is not limited to posting public bid opportunities.

It also provides information on projects awarded; enables suppliers, contractors, and consultants to register and participate in the procurement process through an online platform; and allows the public to scrutinize these particulars as projects commence and are later implemented.