This article presents a brief case study of the benefits the country of Georgia achieved through implementing an e-procurement system. As stated in the article:
“In Georgia, the introduction of e-procurement (Ge-GP) is a good example of how strong political will and commitment can be critical in the context of reforming public procurement.”
One of the primary benefits cited by the article is that the E-procurement implementation significantly minimized corruption risks and brought significant savings to the government and its citizens. More specifically, the demonstrated benefits identified and briefly described in the article include:
• “Environmentally friendly procurement – reduced paper-based procurement (bidders are no longer required to submit printed originals and copies of bids).
• Transparency – citizens across the world, completely free of charge, can observe the tendering process in real time and obtain essential information regarding bids.
• Four times reduced fee for participation – Procurement conducted in a conventional way requires paying a nonrefundable fee for obtaining bidding documents in the amount of $100-150, while Ge-GP system bidders obtain bidding documents free of charge and pay a nominal fee of $30 for their participation.
• Simplified and accelerated review process by the World Bank – No need to obtain actual bids for review; the World Bank’s procurement specialist/TTL is granted a special access to download bids through the system.
• Remote participation – Bidders, even several hundred kilometers away from the capital, can submit bids remotely from their offices, thus substantially reducing the time and cost associated with transportation.
• Substantially reduced risk of collusion among bidders – A bidder’s identity remains confidential and is only disclosed after the bid opening.”
Full Case Study: World Bank
Image Courtesy of Nicolas Raymond