DEBRE MARKOS UNIVERSITY

DEPARTMENT

COURSE NAME

Group Members ID No.

1, Amide Yimer 1306222

2, Bemnet Abebaw 153434

3, Biruktawit Demissew 1306287

4, Biruktawit Gashaw 1308656

5, Ephrem Tamiru 1305626

6, Fikadu Mamo 1306031

7, Gebrie Simeneh 1306078

8, Genene Getachew 1306392

9, Gizachew Mendis 1306419

10 Kibrom Admasu 1305763

Course Lecturer Name

December, 2024

Debre Markos, Amhara, Ethiopia

 A. WHY USE THE PROCUREMENT PROCLAMATION TO ADMINISTER
ADMINISTRATIVE CONTRACT LAW?

The Procurement Proclamation serves as a foundational legal framework for managing

administrative contracts within Ethiopia, ensuring that the process of awarding, implementing
and monitoring public contracts is efficient, transparent and accountable. By establishing clear
rules and procedures, it facilitates a system where contracts are awarded based on merit rather
than personal or political interests, which is crucial in minimizing corruption and
mismanagement of public funds.

 Promoting Transparency and Accountability:

One of the key justifications for using the Procurement Proclamation is its ability to introduce
transparency into public procurement processes. By requiring public advertising, competitive
bidding and the documentation of procurement decisions, the law reduces the risk of corruption,
fraud and nepotism. This transparency is essential to ensure that public resources are spent
appropriately and that the procurement process is open for scrutiny by the public, ensuring
greater accountability.

 Efficiency in Public Procurement:

The Proclamation also addresses the need for efficiency in the public procurement process. It
provides a clear delineation of roles and responsibilities for government entities and procurement
officers, helping to streamline the process and reduce delays. By establishing a consistent and
predictable framework for procurement, it ensures that public contracts are awarded based on
clear, competitive criteria. This helps eliminate bottlenecks and increases the effectiveness of
public service delivery by minimizing bureaucratic inefficiencies.

 Ensuring Fair Competition:

A significant feature of the Procurement Proclamation is the emphasis on fair competition. By

stipulating that procurement contracts must be awarded through competitive bidding, the law
creates a level playing field where all qualified suppliers and contractors have equal
opportunities to participate. This competitive environment promotes better value for money, as it
encourages vendors to offer their best terms in order to win contracts. The principle of fair
competition also attracts both local and international businesses, which can further contribute to
the development of a competitive market economy.

 Legal Consistency:

Using a unified legal framework for public procurement ensures consistency and reduces
ambiguity in how contracts are governed across various government departments and agencies.
The Proclamation sets out standard procedures and requirements, eliminating discrepancies and
providing a uniform set of rules for public procurement. This consistency is vital for ensuring
that government entities adhere to the same standards and that procurement practices remain fair
and reliable, regardless of the department or level of government involved.

 Promoting International Standards:

Another important benefit of using the Procurement Proclamation is its alignment with
international procurement standards. Many countries around the world have adopted similar
frameworks to regulate public procurement and Ethiopia's adherence to these practices ensures
that it is aligned with global best practices. This alignment can attract foreign investment and
promote collaboration with international organizations, as it assures stakeholders that
procurement processes are transparent, competitive and fair.

 Protecting Public Interests:

The Procurement Proclamation also helps protect the interests of the public by ensuring that
taxpayer money is spent responsibly. It creates mechanisms for monitoring and enforcing
procurement practices, ensuring that contracts are executed as agreed and that any deviations
from the terms are addressed promptly. In doing so, it reduces the likelihood of cost overruns,
project delays or subpar quality of work, all of which can be detrimental to the public and the
government.

The use of the Procurement Proclamation in administering administrative contract law is

essential for ensuring a transparent, efficient and accountable procurement process. It minimizes
the risks of corruption, enhances competition, aligns with international standards and ensures that
public resources are used effectively to benefit society.
 B. WHAT WERE THE CAUSES OF REPEALING AND AMENDING THE 2005
AND 2009 PROCLAMATIONS?

Various factors, which mirrored the dynamic needs of public procurement and the general
economic environment, necessitated the repeal and amendment of the 2005 and 2009
Procurement Proclamations in Ethiopia. Although these proclamations had been enacted to guide
the legal framework governing public procurement, they became increasingly inadequate to
handle the emerging challenges. The major reasons that constituted the need for amendment of
these proclamations are outlined below.

 Increasing Complexity in Public Procurement

As the economy of Ethiopia continued to grow and the scale of public procurement projects
expanded, these original proclamations, designed for a very simple procurement
system, could not cope with the modern complexities of public contracts. The growth in
infrastructure, government services, and other needs in the public
sector raised the need for more robust legal frameworks that could handle such expanding
responsibilities. The 2009 amendments were an attempt to adapt to this new reality, but more
changes were needed, hence the 2016 proclamation.

 Inadequate Transparency and Accountability

Among the major criticisms of the 2005 and 2009 proclamations was the lack
of appropriate mechanisms for ensuring transparency in the procurement process. Corruption,
favoritism, and inefficiency became common due to weak oversight, unclear guidelines, and
insufficient regulatory mechanisms. This in turn affected the people's perception and belief in
government institutions. Moreover, it created wasteful practices in the usage of the budget.
With the desire to have a nondiscriminatory and transparent tender/bidding process, reforms
were directed toward merit, competitiveness, and justice in government contracting.

 Corruption and Mismanagement

Although certain changes took place, the proclamations in both 2005 and
2009 had some loopholes that gave away to corruption and mismanagement. These situations,
coupled with inconsistent application and lack of standardized regulations on procurement
procedures, have made it easy for actors in the procurement process to manipulate the system
for personal gain. The government recognized that this required reforms that would help
reduce misuse of public funds in an effort to enhance efficiency within the public sector
contracts.

 Alignment to International Standards

The other important reason for the amendment was to bring Ethiopia's procurement system in
line with international standards. The original proclamations were not in conformation with
best practices in public procurement worldwide, thus posing
challenges to attracting foreign investment and in cross-border partnerships. The commitment
by Ethiopia to increase foreign investment and to participate in international trade called for a
procurement system that would be in conformation with international standards, a factor
that influenced the revisions made in the 2009 and 2016 proclamations.

 Technological Advancements

As technology advanced, particularly in the area of e-government and digital tools, the 2005
and 2009 proclamations did not adequately incorporate the use of new technologies in
procurement practices. E-procurement was becoming increasingly popular globally as a tool
to enhance efficiency, reduce fraud, and improve the accessibility of public procurement
systems. The 2016 amendment included provisions for the adoption of e-procurement,
digitalization of procurement processes, and the use of electronic platforms for tendering,
bidding, and contract management.

 Efficiency and Effectiveness of Public Procurement

Another area of concern was the efficiency of public procurement. The previous
proclamations had frequent delays in the awarding of contracts, disputed tender processes,
and a generally slow execution of projects. It was here that the 2016 amendments
were brought in to improve this situation-to cut down delays in the processes and
ensure timely execution of the Projects to stay within budgets. In light of such a shift,
effective procurement helps to raise the quality of governmental performance
and improves the effectiveness of delivering essential public services.
 Increased Role of Regulatory Authorities

Early proclamations lacked effective oversight by regulatory bodies, essential in the integrity
of the procurement process. The year 2009 saw a move towards this end, but the revision in
2016 made the strengthening of procurement oversight bodies very clear. Clearer mandates
and resourcing of the regulatory bodies for ensuring compliance to the laws, monitoring their
application and accountability.

 Public Demand for Reform

Increased public demands for reforms of the procurement system contributed to calling for the
repealing and amendment of these proclamations. More and more, active citizens and
different advocacy groups put pressure on the government to act against the inefficiencies and
corruption linked to the procurement system. This was also viewed as a way of contributing to
the quality of public services and infrastructure, with efficient sustainable spending public
money.

The reasons that have underpinned the repeal and amendment of the 2005 and 2009
Procurement Proclamations are economic growth, international standards, corruption concerns,
technological advancement, and public demand for better governance. These changes
reflect the efforts of Ethiopia to strengthen public procurement for transparency and
efficiency, as well as to align with global best practices. The challenges mentioned above
have called for the introduction of Proclamation No.
1333/2016, which was intended to establish a more transparent, effective, and globally
aligned public procurement system.
C. Discuss the peculiarities of the 2016 Federal Public Procurement and Property
Administration Proclamation (No. 1333/2016).

The Federal Public Procurement and Property Administration Proclamation No. 1333/2016
introduced several reforms that addressed shortcomings in the previous versions of 2005 and
2009, offering a more inclusive and modern approach to public procurement in Ethiopia. The
2016 Proclamation is marked by several key peculiarities that significantly enhance the
procurement process and make it more transparent, efficient, and accountable.

 More Robust Anti-Corruption Measures:

The most critical features of the 2016 proclamation are the inclusion that gives more robust
anti-corruption measures. They have been designed to solve the general feeling of unethical
practice being widespread in procurement. According to this 2016 law, procurement is now
under more stringent auditing and monitoring. It calls for increased monitoring of
procurement officers and contractors through frequent audits, reporting and with grave
sanctions for infractions committed. This limits the scope for corruption and engenders a
culture of accountability.

 More significantly, the 2016 Proclamation places a premium on the need for transparency
in the procurement process. In this regard, the Proclamation requires that all
procurement proceedings, including tender notices, contract awards, and evaluation results,
be published and accessible to the public. It is important that procurement
decisions be taken openly and that any party who may
feel interested is able to scrutinize the same. This transparency eliminates the potential
for nepotism, hence giving room for fair competition, as all entities
can have access to relevant information before the actual bidding process.

 Introduction of E-Procurement:

The 2016 proclamation introduced e-procurement, allowing for the submission of bids online
and conducting business related to public contracts electronically. E-procurement improves
the efficiency of the process and eliminates delays related to physical submissions, thus
increasing access to the procurement system by business entities, especially smaller ones that
might have been excluded under the older, more traditional systems.
 More Private Sector Participation:

It encourages more private sector involvement. The Proclamation simplifies the bidding
process to enhance competition among contractors and suppliers. The reform
in 2016 has been one of making procurement more attractive to local and foreign firms by
reducing bureaucratic hurdles and introducing a level playing
field. The streamlining of procedures will enable private sector players to participate more
readily in government contracts for better service delivery and innovation.

 Better Alignment with International Standards:

The Ethiopian Proclamation of 2016 makes the procurement practices of the country in
line with international standards. In this regard, it ensures that the Ethiopian procurement
processes are at par with the global one to attract foreign investors and contractors who
are well conversant with internationally recognized procurement regulations. Harmonization
of these standards also facilitates trade relations, as foreign entities can more easily navigate
Ethiopia's procurement environment.

 Clarification of Roles and Responsibilities:

One of the major criticisms against previous proclamations was the ambiguity regarding the
roles and responsibilities of procurement officers, contractors, and government officials. The
2016 Proclamation has clearly and specifically identified these roles, thus eliminating
confusion and ensuring that each party is aware of its duties and responsibilities. This clarity
helps reduce inefficiencies and conflicts that may result from misunderstanding the roles.

 Stricter Enforcement of the Contract:

The 2016 Proclamation introduced stricter enforcement mechanisms to ensure that contracts
are adhered to, and there is some form of penalty for failure to comply. In this regard, the
legal framework now supports effective mechanisms for enforcing terms and
conditions agreed upon in procurement contracts so that contractors perform their part while
the public sector gets the services or goods it contracts. This enforcement
mechanism will help mitigate risks of delays and substandard work.
 Sustainability and Social Responsibility:

Probably the major enhancements made to the 2016 Proclamation relate to sustainable
procurement. It emphasizes that environmental and social variables should be considered in th
e awarding of contracts. This includes screening the ecological impact of projects with a view
to ensuring the projects enhance social development, such as giving opportunities for
marginalized groups or using ethical means of improving labor standards. This focus on
sustainability was not emphatically captured in previous versions of the Proclamation.

The Federal Public Procurement and Property Administration Proclamation No. 1333/2016
represent a significant step forward in Ethiopia's efforts to modernize and improve the
procurement system. The introduction of anti-corruption measures, transparency, e-
procurement, private sector involvement, and sustainability highlights a comprehensive
approach to creating a more effective, fair, and competitive public procurement environment.
These changes also bring procurement practices in Ethiopia in line with international
standards, which is important for attracting international investors and ensuring that public
procurement supports long-term sustainable development goals.
REFERENCES

1. Federal Democratic Republic of Ethiopia. (2016). Federal Public Procurement and

Property Administration Proclamation No. 1333/2016. Addis Ababa: Federal Negarit
Gazeta.

2. Federal Democratic Republic of Ethiopia. (2005). Federal Public Procurement

Proclamation No. 430/2005. Addis Ababa: Federal Negarit Gazeta.

3. Federal Democratic Republic of Ethiopia. (2009). Federal Public Procurement

Proclamation No. 649/2009. Addis Ababa: Federal Negarit Gazeta.

4. World Bank. (2020). Public Procurement Reform and Governance in Ethiopia:

Enhancing Transparency and Accountability. Washington, D.C.: World Bank
Publications.

5. OECD. (2017). Public Procurement for Sustainable Development in Ethiopia. Paris:

OECD Publishing.