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Market Readiness Analysis

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Three items (i.e. items 1, 2, and 3, respectively ―Financial costs‖, ―Transactions‖,<br />

and ―Salaries & additional services to employees‖) were eliminated given their<br />

non-relevance to our study, although they represent about 70% of the annual<br />

budget as per the Ministry of Finance.<br />

In addition, it is worth mentioning that item 4 ―Other Establishments‖ is not<br />

itemized in details but rather as a lump sum. After discussions with our sources,<br />

it was revealed that these expenditures concern actions undertaken by the<br />

Council for Development and Reconstruction (CDR) and therefore have to be<br />

retained for this study.<br />

Finally fuel expenses were omitted since they require the formulation and<br />

implementation of a national policy.<br />

3.5- Selection of expenditures<br />

Among this preliminary list of 37 areas, those commanding more than 0.5% of<br />

the market share were selected which led to 33 sectors retained.<br />

We have grouped 3 experts for each priority depending on their respective field<br />

of expertise in order to assess the level of risk associated with the procurement<br />

of goods and services. The Total Risk Score will be given by adding the totals<br />

given for each of the above themes. In fact this part consists on transforming the<br />

6 government priorities into risk questions in order to have experts opinions each<br />

in his/her field of expertise in order to obtain the risk expenditure that each<br />

priority requires. The main objective is to calculate the number of ―Yes‖ each<br />

expenditure category scores in order to create the final mapping (Table 5).<br />

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