As the Philippines continues plans to mandate e-procurement practices in efforts to attract foreign investment, EU officials have spoken out in favor of the new rules.
At the Fair Competition, Transparency and Procurement: Attracting EU Investment to the Philippines forum, held Tuesday (Feb. 17), EU Ambassador to the Philippines Guy Ledoux agreed that the Philippine Government Electronic Procurement System is sure to encourage EU direct investment in the nation.
Known as PhilGEPS, the new e-invoicing mandate aims to increase transparency in government spending and reduce costs associated with traditional procurement methods, among other goals. “The recent decision to update the tool by 2016 is encouraging, as the increase of functionality of the system will further reduce procurement costs, provide audit trails and make available online services such as e-bidding and e-payment,” Ledoux said at the event.
The Philippines’ Budget Secretary Florencio Abad added that the new initiative also widens awareness not just of public bidding projects, but also information on contracts previously awarded. The PhilGEPS program, he said, also facilitates suppliers’ online registration and participation in the government procurement process.
Overall, the program is designed to encourage foreign investment; Abad said that some investors have been reluctant to invest in the Philippines because of a lack of updated procurement infrastructure. Among the concerns of foreign investors, he said, is a too-short timeframe between the announcement of tenders and the deadline for bid submissions.
As e-invoicing programs spread across the world’s governments – and into the private sector – nations are taking closer look at how digital payments processes can boost efficiency and save taxpayer money. In addition to PhilGEPS, the Philippines is also launching a new campaign to eliminate cash and paper checks from the supply chain. According to Abad, federal officials have launched a pilot program that has government buyers use a cashless purchase card.
The program is currently underway in the nation’s Department of Budget and Management, Department of National Defense, and Armed Forces of the Philippines.
In addition to facilitating the procurement process, Abad said the purchase card offers real-time, accurate data about spending trends.
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