ARTICLE REVIEW ON “THE KEY ASPECTS OF PROCUREMENT IN

PROJECT MANAGEMENT: INVESTIGATING THE EFFECTS OF

SELECTION CRITERIA, SUPPLIER INTEGRATION, AND
DYNAMICS OF ACQUISITIONS”

Article review submitted to CPU business and information technology college

in partial fulfillment of the requirements for the course project financial
management

By: Hirut

[CPU/34544/15]

Submitted to: xxxxxxxxx (PhD)

[Assistant professor of xxxxx ]

March, 2024
Addis Ababa, Ethiopia
Review the Ethiopian Procurement Proclamation
The Ethiopian Procurement Proclamation (No. 101/2018) was issued on 11 December 2018. It
repealed the previous Ethiopian Procurement Proclamation (No. 58/2005). The proclamation
establishes a framework for the procurement of goods, works, and services by public entities. It
also establishes the Ethiopian Public Procurement Authority (EPPA) as the regulatory body for
public procurement.
The proclamation defines public entities as "any organ or agency of the government of Ethiopia,
including any state or regional government, any public enterprise, any public institution, any
public corporation, any public trust, any public foundation, any public fund, any public utility,
any public-private partnership, and any other entity established by law or by a decision of the
government of Ethiopia."
The proclamation sets out the following principles for public procurement
 Transparency: All procurement processes must be transparent and open to public
scrutiny.
 Competition: Procurement processes must be competitive and fair.
 Value for money: Procurement processes must ensure that the best value for money is
obtained.
 Integrity: Procurement processes must be free from corruption and fraud.
The proclamation establishes a number of procedures for public procurement. These procedures
include:
 Open tendering: The most common method of procurement is open tendering. Under
this procedure, all interested bidders are invited to submit bids. The contract is awarded
to the bidder that submits the lowest responsive bid.
 Restricted tendering: Restricted tendering may be used when there are only a few
potential bidders or when the procurement is for a complex or specialized item. Under
this procedure, only pre-qualified bidders are invited to submit bids.
 Direct procurement: Direct procurement may be used for small-value procurements or
for procurements that are urgent or necessary to protect public health or safety. Under
this procedure, the procuring entity may directly negotiate with a single supplier. The
proclamation also establishes a number of requirements for public procurement contracts.
These requirements include:
 Contracts must be in writing.
 Contracts must be awarded to the lowest responsive bidder.
 Contracts must be for a specific period of time.
 Contracts must be in the national language of Ethiopia.
The proclamation establishes a number of sanctions for violations of its provisions. These
sanctions include:

 Fines
 Suspension from bidding
 Debarment from bidding
 Criminal prosecution

The Ethiopian Procurement Proclamation is a comprehensive and detailed law that governs
public procurement in Ethiopia. It establishes a framework for transparent, competitive, and fair
procurement processes. It also establishes a number of requirements for public procurement
contracts and sanctions for violations of its provisions.

Research on Challenges & Prospects of E- Procurement

Challenges of E-Procurement There are a number of challenges associated with e-procurement,
including:
 Lack of awareness: Many businesses are not aware of the benefits of e-procurement, and
they may be reluctant to adopt it.
 Technical difficulties: E-procurement systems can be complex and difficult to use,
which can deter businesses from adopting them.
 Security concerns: Businesses are concerned about the security of their data when it is
transmitted over the internet.
 Resistance to change: Some businesses are resistant to change and they may be reluctant
to adopt new technologies, such as e-procurement.
Prospects of E-Procurement Despite the challenges, e-procurement offers a number of potential
benefits for businesses, including:
 Cost savings: E-procurement can help businesses to save money by reducing the cost of
purchasing goods and services.
 Increased efficiency: E-procurement can help businesses to improve efficiency by
automating the procurement process.
 Improved visibility: E-procurement can help businesses to improve visibility into their
procurement processes.
 Reduced risk: E-procurement can help businesses to reduce risk by providing a more
secure way to purchase goods and services.
Conclusion
E-procurement is a growing trend in the business world, and it offers a number of potential
benefits for businesses. However, there are also a number of challenges associated with e-
procurement, such as lack of awareness, technical difficulties, security concerns, and resistance
to change. Businesses that are considering adopting e-procurement should carefully weigh the
benefits and challenges before making a decision. Here are some specific examples of how e-
procurement has been used to improve the procurement process for businesses:
 Cost savings: A study by the Aberdeen Group found that businesses that use e-
procurement can save an average of 10% on their procurement costs.
 Increased efficiency: A study by Forrester Research found that businesses that use e-
procurement can reduce the time it takes to process a purchase order by 50%.
 Improved visibility: A study by Gartner found that businesses that use e-procurement
have a 360-degree view of their procurement processes, which allows them to identify
and address problems more quickly.
 Reduced risk: A study by the Ponemon Institute found that businesses that use e-
procurement have a 50% lower risk of fraud. E-procurement is a powerful tool that can
help businesses to improve their procurement processes. By carefully considering the
benefits and challenges, businesses can make informed decisions about whether or not to
adopt e-procurement.