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Africa's Public Procurement & Entrepreneurship Research Initiative – APPERI

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I am the Assistant Editor-in-Chief for the Clarkson Integrator. I'm studying abroad right now but will return as the Assistant Editor-in-Chief. Find my personal blog at socialscientific.weebly.com!

South Africa to Publish Coal Power-Procurement Process This Year


Bloomberg News

Paul Burkhardt

Nov 21, 2014

South Africa plans to publish before the end of the year the process for independent power producers bidding to build new coal-fired generation capacity.

“We are currently finalizing the coal-procurement documents,” the Energy Department said yesterday in an e-mailed reply to questions. “We are expecting the bidders to bid the tariff and provide us with the estimated project cost.”

Africa’s second-biggest economy is struggling with a power grid under strain, leading to controlled blackouts this year. In April, then Minister of Energy Ben Martins announced additional infrastructure projects including 2,500 megawatts of coal-fired power.

“The bidders are expected to raise their own capital for the construction of the plant and Eskom will pay only for the energy produced,” the department said. “We will have sight of the total project cost at bid submission but it is premature to speculate on the price and the project cost at this stage.”

To contact the reporter on this story: Paul Burkhardt in Johannesburg atpburkhardt@bloomberg.net

To contact the editors responsible for this story: Will Kennedy at wkennedy3@bloomberg.netTony Barrett, Alastair Reed

WHO Updates PPE Guidelines for Ebola Response


http://www.infectioncontroltoday.com/
November 3, 2014

 

As part of the World Health Organization (WHO)’s commitment to safety and protection of healthcare workers and patients from transmission of Ebola virus disease, WHO has conducted a formal review of personal protective equipment (PPE) guidelines for healthcare workers and is updating its guidelines in context of the current outbreak.

These updated guidelines aim to clarify and standardize safe and effective PPE options to protect healthcare workers and patients, as well as provide information for procurement of PPE stock in the current Ebola outbreak. The guidelines are based on a review of evidence of PPE use during care of suspected and confirmed Ebola virus disease patients.

The Guidelines Development Group convened by WHO included participation of a wide range of experts from developed and developing countries, and international organizations including the Centers for Disease Control and Prevention (CDC), Médecins Sans Frontières, the Infection Control Africa Network and others.

“These guidelines hold an important role in clarifying effective personal protective equipment options that protect the safety of healthcare workers and patients from Ebola virus disease transmission,” says Edward Kelley, WHO director for service delivery and safety. “Paramount to the guidelines’ effectiveness is the inclusion of mandatory training on the putting on, taking off and decontaminating of PPE, followed by mentoring for all users before engaging in any clinical care.”

Guidelines were developed from an accelerated development process that meets WHO’s standards for scientific rigor and serves as a complement to the Interim infection prevention and control guidance for care of patients with suspected or confirmed filovirus hemorrhagic fever in healthcare settings, with focus on Ebola, published by WHO in August 2014.

Experts agreed that it was most important to have PPE that protects the mucosae – mouth, nose and eyes – from contaminated droplets and fluids. Given that hands are known to transmit pathogens to other parts of the body, as well as to other individuals, hand hygiene and gloves are essential, both to protect the health worker and to prevent transmission to others. Face cover, protective foot wear, gowns or coveralls, and head cover were also considered essential to prevent transmission to healthcare workers.

“Although PPE is the most visible control used to prevent transmission, it is effective only if applied together with other controls including facilities for barrier nursing and work organization, water and sanitation, hand hygiene, and waste management,” says Marie-Paule Kieny, assistant director-general of health systems and innovation. Benefits derived from PPE depend not only on choice of PPE, but also adherence to protocol on use of the equipment.

A fundamental principle guiding the selection of different types of PPE was the effort to strike a balance between the best possible protection against infection while allowing health workers to provide the best possible care to patients with maximum ease, dexterity, comfort and minimal heat-associated stress.

In this situation where evidence is still being collected, to see what works best and on an effective sustainable basis, it was considered prudent to provide options for selecting PPE. In most cases, there was no evidence to show that any one of the options recommended is superior to other options available for healthcare worker safety.

Further work is needed to gather scientific experience and data from the field in systematic studies, in order to understand why some health workers are infected in the current outbreak and to increase effective clinical care. WHO is committed to working with international partners on these issues to build this evidence base.

Source: WHO

UN documents shed light on African defence procurement


October 12, 2014

Tanzania’s Type 07PA 120 mm self-propelled mortars were seen for the first time in a 26 April parade. China’s submission to the UNODA says it supplied 12 large calibre artillery systems to Tanzania in 2013. Source: IHS/Ping Zhang

The UN Office for Disarmament Affairs (UNODA) recently released two documents that provide additional details of African defence procurement in 2013, including the numbers for some of the acquisitions that countries are known to have made that year.

For example, China said it had supplied 11 unidentified armoured combat vehicles and 12 large calibre artillery systems to Cameroon. This is probably a reference to the Type 07P infantry fighting vehicles (IFVs) and PTL-07 tank destroyers with 105 mm guns that were paraded for the first time on 20 May.

Similarly, China said it had supplied 24 new tanks and 12 large calibre artillery systems to Tanzania. The Tanzania People’s Defence Force paraded Type 63A light amphibious tanks and 120 mm Type 07PA self-propelled mortar systems for the first time on 26 April.

China also said it transferred 30 unidentified tanks to Chad. This suggests the tanks seen on transporters in the Chadian parade in August were not its old T-55s, but newly acquired Type 59s.

Belarus confirmed to the UN that it sold four Su-24M supersonic attack aircraft to Sudan, as well as four Mi-24 assault helicopters, but no additional Su-25s as claimed by the source that revealed the Su-24 sale.

Sudan also bought more armour from Ukraine, namely 20 T-72 tanks, 20 BMP-1 IFVs, and five 2S1 Gvozdika self-propelled guns. It is unclear if the T-72s were exported as kits to be assembled in Sudan as the Al-Zubair tank. Ukraine also sold five 122 mm D-30 howitzers to Sudan.

Having delivered 99 T-72s to Ethiopia in 2012, Ukraine transferred another 29 in 2013. Ukrainian state arms exporter Ukrspecexport announced in June 2011 that the company had signed a USD100 million deal to supply 200 surplus T-72s to Ethiopia. It is unclear if the first deliveries were made in 2011 as Ukraine did not submit any information to the UNODA that year.

Ethiopia also acquired 12 surplus Mi-24 helicopters from Ukraine and 12 MiG-23 jets from Bulgaria. Described as “dismantled, expired lifespan, without armament”, the MiG-23s were presumably acquired so they could be cannibalised to keep Ethiopia’s existing fleet flying.

Bulgaria confirmed that it supplied the 152 mm D-30 howitzers that were seen in a parade by the Armed Forces of the Democratic Republic of the Congo in July.

Most of Russia’s defence exports to Africa went to Algeria, which acquired 101 tanks and 10 armoured combat vehicles. Algeria is reportedly in the process of acquiring a second batch of T-90S tanks from Russia to bring its total fleet up to 305 vehicles.

The only other African export listed in the Russian submission to the UNODA was for four combat helicopters delivered to Ghana: an apparent reference to the Mi-171Sh aircraft it received that year.

Mozambique, meanwhile, appears to have received its first tracked vehicles in 2013. The UK said it exported 40 F430 armoured combat vehicles to the country: probably a reference to surplus British Army vehicles from the FV430 family. The UK also delivered 20 old Saxon wheeled armoured personnel carriers to Mozambique.

Rwanda, meanwhile, acquired just one FV430 from the UK.

South Africa: Government to Decide On Nuclear Procurement Process


allAfrica.com

October 1, 2014

Pretoria — The Department of Energy on Wednesday announced that government will decide on which procurement method will be used to acquire 9 600MW of nuclear power.

“… There will be a procurement process and the work that the department is doing is preparation towards that procurement process,” Deputy Director General (DDG) for Nuclear Energy at the Department of Energy, Zizamele Mbambo, said.

South Africa recently signed an Intergovernmental Agreement on Strategic Partnership and Cooperation in Nuclear Energy and Industry with Russia.

The agreement lays the foundation for the large-scale nuclear power plants (NPP) procurement and development programme of South Africa. This will be based on the construction of new nuclear power plants in SA with Russian VVER reactors, with total installed capacity of up to 9.6 GW (up to 8 NPP units).

At Wednesday’s briefing, the department said it is currently doing work in preparation towards the procurement process.

“We’ve highlighted that various models exist in the international space of the procurement process and South Africa would review all this and choose whichever procurement process it chooses to implement the nuclear programme. That decision will be made in the future,” said Mbambo.

Internationally, various procurement models are used and these are informed by the way in which countries want to roll out their nuclear programmes.

“This will apply to SA as well. Government will make a decision and say what is our national interest in rolling out this process,” said Mbambo, adding that the procurement process has not started.

South Africa has a number of nuclear agreements with several countries, including Russia and the US. SA is set to sign an agreement with France this month.

The department’s Acting Director General, Dr Wolsey Barnard, said that no information relevant to the public about South Africa’s nuclear build will be withheld.

South Africa’s nuclear energy policy was approved in 2008 and was further enhanced by the approval of the Integrated Resource Plan (IRP) 2010 – 2030, which stipulates that nuclear power will form part of the country’s energy mix to a level of 9 600MW.

“Some of the key elements of the policy revolve around the fact that as South Africa, we want to be self-sufficient. We want to be able to exploit nuclear technology for peaceful use purposes. Currently, people are focusing on the 9 600MW, which is mainly for the generation of electricity. But if you look into the process, the entire programme involves training, skills development and job creation [among others],” said Mbambo.

South Africa is looking at the entire nuclear energy value chain.

On how long will the procurement process take, Mbambo said that this will depend on the type of model that government approves.

He said the aim of the procurement process is to put the country on a path where there is energy security and to reduce greenhouse gas emissions, among others.

To date, South Africa generates 5% of its electricity from nuclear power through the Koeberg Nuclear Power Plant in the Western Cape.

At the centre of the new nuclear build programme will be a concerted localisation plan that will ensure that existing South African industry participates to the maximum extent.

The department said government is committed to ensuring that the new nuclear build programme is undertaken in a fair, competitive and cost effective manner.

– SAnews.gov.za

The role of procurement in EAC integration


Billy Rwothungeyo
September 04, 2014
The role of procurement in EAC integration                                          
 
Lately, the East African Community (EAC) heads of state have been walking the talk of the integration of the regional bloc.
The governments of Kenya, Uganda and Rwanda have committed to undertake an ambitious project; the Standard Gauge Railway (SGR) that will snake her way from Mombasa to Kampala and finally end in Kigali.
The proposed project is also supposed to connect to the South Sudan’s capital Juba, from Tororo. The world’s youngest nation has expressed her willingness to join the EAC regional bloc.  The project is aimed at easing the pressure on road transport infrastructure along the northern corridor, which shoulders 94% of all freight movement.
Similarly, Kenya, Ethiopia and South Sudan are executing another audacious infrastructure development project, the Lamu Port-South Sudan-Ethiopia Transport (LAPSSET) corridor project. Uganda is also keen in the project, as evidenced from President Yoweri Museveni joining counterparts Uhuru Kenyatta, Hailemariam Desalegn and Salva Kiir from Kenya, Ethiopia and South Sudan respectively in a recent Nairobi summit to explore joint financing options for the $22b LAPSSET project.
Strategic role of procurement in delivering these projects
These projects were masterminded to promote and advance the East African Common Market Protocol by boosting linkages that facilitate the movement of goods and services across regional borders.
What rarely pops up in discussions is the role procurement will play in pulling off these mega strategic projects. If the procurement processes for these projects are not managed with the utmost professionalism and scrutiny, these projects will be delayed due to administrative reviews.
Prof. Benon Basheka, a procurement expert and the Dean of the School of Business and Management at the Uganda Technology and Management University says that the procurement will play a role in the success of these projects.
“All these developments have an implication on the core function of these governments. And because procurement is one of the facilitators of this kind of work, it becomes a key input as far as integration is concerned,” he says.
Already, the procurement process for a contractor to undertake Uganda’s part of the Standard Railway Gauge project is in shambles, with the China Civil Engineering Construction Corporation (CCECC) and China Harbour Engineering Company (CHEC) involved in a long and bitter fight over the tender to do Uganda’s part of the job.
The upgrade of Uganda’s existing railway infrastructure to standard gauge will cost $8b. Kenya is proceeding well on the project which has a completion deadline of March 2018.
Hedwig Nyalwal, the Chief Executive Officer (CEO) of the Kenya Institute of Supplies Management (KISM) concurs with Basheka on the significance of procurement and why it should be given more attention.
“In these projects, procurement, through various strategies, will be supporting initiative towards achievement of value for money by implementing the project economically, efficiently and effectively,” he says.
Trade enabler
Nyalwal argues that attitudes towards procurement need to change with the furthering of the integration initiatives, so that East Africans can have more opportunities of doing business across borders.
“EAC partners must realign to view procurement as a strategic function within organisations with potential to contribute to proper selection of projects, cost management, successful delivery, completion of projects, goods and services,” he says.
Nyalwal argues that with more multinationals setting up camp in the region, the right procurement framework would create more opportunities for East Africans in the supply chain as the investors seek for local raw materials.
“Some of these entities have a sourcing strategy including regional sourcing as well as outsourcing in some aspects of manufacturing. These procurement strategies act as tools that promote trade and therefore contributing to regional integration,” he says.
Nyalwal says the ripple down effect will boost trade further in The Common Market for Eastern and Southern Africa (COMESA), which all EAC member states are part of.
“COMESA members are predominantly agricultural countries who rely on strong value chains to meet individual countries food requirements. These value chains are established through national policies and implemented on sound supply chain strategies to manage the pendulum conditions of scarcity and glut,” he reasons.

What needs to change?
Harmonise legal regimes
Experts agree that procurement legal regimes in the East African member states need to be harmonised. Basheka says while the philosophy and vision is integration, the laws have not yet trodden a similar path.
“There is no procurement law that is applicable in all East African countries. Kenya has her own procurement law, so does Tanzania, Uganda and the other partner states. While we have the East African Procurement Forum, we have yet to agree on a common legal framework to facilitate integration,” reasons Basheka.
Colline Mpaata, a procurement specialist working with Strategic Insights Consult Management, Strategy and Business Development consultancy firm says attempts at harmonisation should take a multi-sectorial approach.
“This will enhance the participation of key private and public sector players. In a bid to enhance private sector led economies it will be important for the participation of the private sector and civil society in the harmonisation of the regimes. In as much as the member states involved have committed themselves towards the harmonisation of policies it’s success will greatly depend on the speed with which policies, rules and regulations, standards and the institutional frameworks can be harmonized,” he says.
Mpaata also says standardization from harmonisation will greatly reduce on the cost of doing business and brings about competition.
“With the harmonisation public procurement will provide a breeding ground for national and regional businesses to grow and compete globally. This will encourage partnerships across the region in the execution of public contracts without any limitations. For instance this will see the increased participation of Small, Medium and Micro Enterprises in public contracting.”
Nyalwal says harmonized regulations will further make it easy for the free movement of goods and services across the borders.
“Therefore a harmonized legal regime that governs procurement will facilitate trade and integration by allowing suppliers to trade freely with no legal bottlenecks arising from overlaps or inconsistencies in the individual nation’s legal regimes,” he says.
Governments being the biggest spender in each of the EAC economies, opportunities are rife for private sector players to take part in public procurement.
However, Basheka fears that individual interests of countries, if not handled well in any move to harmonise the legal regimes, could jeopardise such efforts.
“To strike the national balance, a special clause can be put, in terms of the preference, that while we are agreeing to work together as the five East African countries, on matters of particular nature, each country can have a reservation scheme for its nationals,” he says.
Need for EAC procurement secretariat?
There have also been calls from certain circles for the establishment of an EAC procurement secretariat. In fact, one of the resolutions at the recent EAC procurement forum in Kigali was that it be fast tracked.
Mpaata says that a secretariat will improve national procurement systems which will strength the member states within the East African Region.
“One of the greatest challenges faced within the region is the difference in reporting of data estimating public procurement. However with the creation of a secretariat, harmonization in reporting can be achieved where data on estimates is available from official government publication from member states can be accessed at one point,” he says.
Legalising professional bodies
Experts have also been calling for the legalization through acts of parliament of professional bodies that bring together procurement practitioners in the different East African countries.
Proponents of this idea say that all this would promote professional ethics by accrediting their members—the way the law and engineers’ societies do.
“Further, national procurement associations need to develop regional standards, including national certifications that are recognized regionally to enable skills exchange and knowledge transfer. These will further promote regional integration,” says Nyalwal.
Even on this, the EAC member states are not on the same level. In Kenya, KISM was established in 1976 as an umbrella body for those in procurement and supply chain management field.
The passing of the Supplies Practitioners Management Act in 2007 gave KISM the legal mandate to regulate the conduct of professionals under her tutelage.
In East Africa’s largest country, Tanzania, the Procurement and Supplies Professionals and Technicians Board (PSPTB) was established in 2007 by an Act of Parliament.
In Uganda, the Institute of Procurement Professionals of Uganda (IPPU) was formed in 2008, spearheaded by the Uganda’s finance ministry and industry regulator, Public Procurement and Disposal of Public Assets Authority (PPDA).
However, the IPPU bill, a legal framework to govern procurement function in Uganda is just in the works, yet to be presented to parliament.
Rwanda and Burundi are yet to come up with such bodies.

South Africa Signs Agreement With Russia for Nuclear Power


Bloomberg News

Paul Burkhardt

September 22, 2014

South Africa signed a partnership agreement with Russia’s state-owned nuclear company that may see Rosatom Corp. build reactors in Africa’s second-biggest economy.

“The agreement lays the foundation for the large-scale nuclear power plants procurement and development program” using Russian VVER reactors with installed capacity of about 9,600 megawatts, or as many as eight nuclear units, Rosatom and the South African government said in an e-mailed statement today. The country also has a draft nuclear cooperation pact with China.

South Africa’s integrated resources plan envisions 9,600 megawatts of nuclear energy being added to the national grid to help reduce reliance on coal, which utility Eskom Holdings SOC Ltd. uses to generate 80 percent of the country’s electricity. The state-owned company is struggling to meet power demand,

The National Treasury said in February 2013 that a 300 billion-rand ($27 billion) nuclear program was in the final stages of study.

Areva SA (AREVA), EDF SA (EDF), Toshiba Corp. (6502)’s Westinghouse Electric Corp., China Guangdong Nuclear Power Holding Corp., Rosatom and Korea Electric Power Corp. (015760) have expressed interest in building the plants.

Local Procurement

“This agreement opens up the door for South Africa to access Russian technologies, funding, infrastructure, and provides a proper and solid platform for future extensive collaboration,” South African Energy Minister Tina Joemat-Pettersson said in the statement. It will allow the country to implement its plan to create more nuclear capacity by 2030, she said.

The collaboration will result in orders worth at least $10 billion to local industrial companies, Rosatom Director General Sergei Kirienko said in the statement.

In addition to building the nuclear units, the agreement provides for partnerships including the construction of a Russian technology-based research reactor, assistance in the development of South African nuclear infrastructure and education of specialists at Russian universities, the parties said in the statement.

Rosatom currently holds projects for the construction of 29 nuclear power plants, including 19 foreign commissions in countries including India, China, Turkey, Vietnam, Finland and Hungary.

Financial Implications

Eskom operates a 1,800-megawatt nuclear facility at Koeberg, near Cape Town. In December, the Energy Ministry published a revised 20-year energy plan, which projected that new nuclear power won’t be required until at least 2025.

If finalized, the deal may have significant financial risks and implications for electricity prices in South Africa, said Anne Fruhauf, an analyst at New York-based consultants Teneo Intelligence.

South Africa’s energy regulator last month approved a power-tariff increase that could amount to 5 percentage points on top of the above-inflation 8 percent previously agreed, and prices may have to rise even further for Eskom, which supplies 95 percent of the country’s electricity needs, to plug a 225 billion-rand funding gap.

“The million-dollar question will be the financing details and equity ownership,” Fruhauf said in an e-mailed response to questions. “We don’t have the details yet but it could be one of the biggest public procurement programs on which South Africa has ever embarked.”

To contact the reporter on this story: Paul Burkhardt in Johannesburg atpburkhardt@bloomberg.net

To contact the editors responsible for this story: Will Kennedy at wkennedy3@bloomberg.netAna Monteiro, John Bowker

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