From best procurement practices to improved staff morale

Procurement Team, JP Autoceste FbiH – Bosnia and Herzegovina’s state motorways company

As of July 2018, sixteen EBRD public sector clients are in the process of adopting globally recognised procurement standards provided by UK’s the Chartered Institute for Procurement and Supply (CIPS), – the world’s largest procurement setting authority – that allows them to implement best international practices for procurement.

As the result of successful co-operation and active support provided by our procurement teams, ten clients from the transport, municipal, environmental and infrastructure sectors from Romania, Serbia, FYR Macedonia, Bosnia and Herzegovina, and Ukraine have already received their CIPS Corporate Certification Primary Award in procurement excellence. Richard Gargrave, Associate Director at the Procurement Policy & Advisory Department (PPAD), who leads this process noted that the team works with our public sector clients to help them improve their capacity to implement procurement and projects in general, not just those supported by EBRD. “The idea is to leave a legacy providing a major benefit to our clients that outlives the EBRD’s typical project procurement cycle,” he said. “Our clients have shown a willingness to adopt proven international best practices and increase professionalism in the field of procurement to improve the economy and efficiency of their internal operations.”

One example that illustrates how important this is the recent recognition we received from JP Autoceste FBiH, Bosnia and Herzegovina’s state motorways company which successfully passed the CIPS certification in May 2018. As Lejla Hodzic from the company emphasised: “The most important value of the certification process is that we have been able to identify genuine gaps in our processes; such as the risk management procedure, code of ethics and contract management procedure. For sure the biggest challenge which our company gained is an improvement in risk management”.

They estimate that they will manage to reduce procurement risks by 90%, and improve the profile of the procurement function by 95%. All of this has resulted in improved staff morale by 90%. Consequently, the transitional impact is evident and will create a better foundation for new projects. This is especially important as the Motorways of FBiH are implementing large-scale infrastructure projects for the construction of a part of Corridor Vc highway worth EUR370 million, of which the EBRD finances EUR180 million.
CIPS is to be read as a Chartered Institute for Procurement and Supply and is the premier organisation serving the procurement and supply profession. With a global community of over 200,000 members in 150 countries, CIPS sets the standards for the profession.

In the procurement family, we insist on efficient procurement. In that respect, we agree with the opinion of Professor James W. Frick, who said “Do not tell me where your priorities are. Show me where you spend your money and I’ll tell you what they are”. That way we will continue to effectively monitor how our public sector clients use the loan and grant funds provided by the Bank.