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eGP, the new face of public procurement

Under the digitalization process in the country, the implantation of electronic government procurement (eGP) has become effective on the first day of current budget year with selected 9 public institutions.
Public Procurement Property Administration Agency (PPPAA), one of the first selected offices, reveals that the office has officially started its operation on eGP.
The agency, which is responsible to regulate the central government procurement and the administration of public property, has briefed some of the private sector partners about the operation of the new scheme.
Haji Ibsa, Director General of PPPAA, said that as of July 8, 2021 his office has made operation the eGP for its operation.
He told Capital that they commenced the scheme after several tests like other selected public bodies. “The private sector has a strong arm to catch the new system, while different type of trainings have already been facilitated to work under the new technology,” Haji explained.
He added that the new system will allow carrying out local and international procurements through an online manner, “It is also crucial and easy. Moreover, it is transparent to administer the public properties and disposal,” Haji explained.
On the information kit of PPPAA, the new system will bring benefits like access to public procurement information, ability to monitor public expenditure information, increase participation, boost accountability, and redistribution of fiscal expenditure.
Up to 70 percent or around USD 9 billion of the total amount of budget for social and economic sectors is related with procurement.
Different studies indicate that countries that are implanting electronic procurement shall save from five to 25 percent of their budget. Insuring good governance that is observed in different African countries is also the other benefit on the implantation of modern procurement system.
“Due to that, putting in place such modern schemes on the government procurement is crucial for the country,” Haji underlined.
“The new system that becomes implemented in nine public offices is intended to reduce wastage and will enhance efficiency, transparency and accountability in the procurement process. The system will also improve good governance, achieve better value for money in the public procurement sector and support the socio-economic development of the country,” he said.
The government targets to expand the electronic service from the current 176 to 2,500 and increase the electronic based service coverage from the current 2 percent to 85 percent. Institutions that will use electronic trading are to increase to 3,500.
In the coming six months’ time, additional 50 public offices will implement the e-GP and others will join gradually.
The nine offices are: Ministry of Finance, Ministry of Innovation and Technology, Ministry of Revenue, Ethiopian Roads Authority, Ethiopian Pharmaceuticals Supply Agency, PPPAA, Public Procurement and Property Disposal Service, Addis Ababa University, and Addis Ababa Science and Technology University.


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