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Application of the OECD/DAC

assessment methodology:
Chile’s CPAR

Jorge Claro, President and CEO


International Procurement
Institute, INPRI
Country Procurement
Assessment Report (CPAR)
 Execution of loans/grants are carried
out generally observing the policies of
the MDBs
 There is intention to utilize national
systems
 MDB’s Country Assistance Strategies must
include procurement considerations
 The CPAR is the most important tool to
determine the soundness of a national
system, allowing MDBs to assess a country’s
ability to successfully execute the projects
Chilean Setting
 The process started in 2007 but
budgetary constraints and
bureaucratic hurdles delayed its
start until 2008
 2009 is an election year in Chile and
the political climate has changed as
government priorities have shifted
 What was a priority and had a
champion in 2007 lost its momentum
Chilean Setting
 MDBs leverage in Chile is limited
 The Government has easy access to
International Capital Markets
 IADB made a loan to Transantiago,
the Santiago Public Transportation
System.
 The loan was declared unconstitutional
Chilean Setting
 Transantiago is the subject of a
major domestic dispute amongst
parliamentary factions, centering
on effectiveness, rate increases
and sources of funding for the
system. It has affected IDB’s
position in the country
 The loan has not been repaid
Chilean Setting
 The CPAR must be negotiated at the
highest levels of government
 Procurement authorities may have their
own perspectives or agendas
 Chile is not a member of the OECD,
but has expressed an interest in
joining
Setting
 The OECD/DAC methodology is
 Highly Participatory

Many stakeholders have to be identified
 Represents a serious investment of time
and resources, and the participation of
many public officials requires political will
 Somewhat rigid, missing nuances of the
procurement process

Market Conditions

Legal Aspects
Key Players
 Government of  IADB/WB Team
Chile  Bank Staff
 Ministry of Finance
 Local Consultants

Legal Consultant
 Procurement 
Economists
Authority 
Procurement
 Ministry of Works Specialists
 Ministry of
 International
Housing Consultants

Procurement
 Supreme Audit Specialists
Entity
Key Players
 ChileCompra Users  Organized
 All Ministries Constituencies
 Decentralized  Chambers of
Entities Commerce
 Armed Forces  Professional
 Local and Regional Associations
Governments  Media
 Vendors and  Pro-OECD Lobby
Suppliers

Small and Medium
Enterprises
 Importers and
Issues
 The OECD/DAC Methodology is not
applied in a vacuum
 Participation from all sectors and
stakeholders is essential
 Identifying all of them is difficult
 Only a strong central authority will
have the authority to convene them
 Delays caused initial levels of
participation and ownership to
wane
Issues
 Procurement authorities play a critical role
in validation workshops
 A procurement strategic plan for 2008 – 2012
was published without inputs from the CPAR

CPAR findings that differed from or meant changes to
the plan would have been controversial
 Attitudes towards the exercise set the tone

Willingness to learn from others and address problems
is essential, but can be constrained by the desire to
obtain the best possible grade for a system that is
perceived as adequate
Issues

 Limited budget had impact on


depth and breadth of audit
samples and regional coverage
 Sample selection requires country
knowledge and is key to exercise
Issues
 When systems are perceived as poor,
Governments are more amenable to
finding problems and identifying
solutions
 When systems are perceived as
adequate, Governments prefer not to
identify issues and leave the system
as-is, as priorities lay elsewhere
 Chile is perceived internally as having
a very good system and is regarded
as the standard-setter in the region
Approaches

 The OECD/DAC Methodology


appears to be more applicable to
emerging economies than to
developed countries
 The WB/IADB team had to reconcile
the OECD/DAC’s scientific rigor to the
realities of a highly charged political
scenario
Approaches

 The WB/IADB team had to find


ways to produce a CPAR after the
validation workshops yielded
results that contradicted the initial
findings of the local consultants
Outcome
 The CPAR was completed in 2008
and the draft report is currently
undergoing revisions (May 2009)
 Though the exercise was successful,
opportunities for a more in-depth
discussion on present and future
issues and further refinement of the
system could, perhaps, have been
exploited further
The end

Comments and questions are welcome

Jorge Claro
President and CEO
INPRI
10708 Lady Slipper Tr.
North Bethesda, MD 20852
Tel 301 230-9011
jclaro@inpri.org