Performance-based contracting in public procurement of developing countries

Baynesagn Asfaw Ambaw

Research output: ThesisPhD Thesis - Research UT, graduation UT

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Abstract

This research is focused on the application of Performance-based Contracting (PBC) in public procurement system of developing countries. We define five research objectives (ROs) that focus on this common issue. The first objective (RO1) mainly deals with the theory behind and the theoretical knowledge of PBC aspects. More specifically, it analyzes the concept and definitions of PBC by different authors, analyze the relevant theories in relation to PBC, and explore advantages and disadvantages of PBC in public procurement, specifically in the context of developing countries. In the subsequent research objectives (RO2-RO5), we focus on understanding the extent of the application of PBC and comparing it with the traditional contracting system, and we clarify the factors underlying the low use of PBC in the public procurement system of developing countries (RO2), the extent to which the application of PBC can minimize the existing challenges of public procurement in developing countries (RO3), to what extent PBC concepts are included in the rules and regulations of some selected international institutions and countries (RO4), and the perceptions of public officials on the application of PBC in the public procurement system (RO5).
The findings of the research indicate that PBC is becoming an important instrument for the efficiency of public procurement, minimize the existing problems in the traditional procurement system, and achieve value of public money in general. Despite numerous benefits of PBC, application of it in the public procurement system is still limited. This is due to lack of clear legal framework, capacity and fear of corruption. Based upon these findings, we conclude this study with some suggestions to improve the applicability of performance-based contracting in the public procurement system of developing countries, taking Ethiopia as an example.
Original languageEnglish
Awarding Institution
  • University of Twente
Supervisors/Advisors
  • Telgen, Jan , Supervisor
Award date2 Nov 2017
Place of PublicationEnschede
Publisher
Publication statusPublished - 2 Nov 2017

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