Effect of sustainable procurement practices on operational performance – case study Ghana Grid Company Limited (GRIDCo)

According to the World Bank report, between 50-70% of the national budget accounts for Public Procurement expenditures, 14% of the budget is attributed to the Gross Domestic Product (GDP) and 24% for total imports. It is against this background that institutions need to embed Sustainable Procurement Practices in their operation in order to maximise the efficient and judicious use of their scare resources. Sustainability is defined as the right balance between people, planet and profit. These three elements are represented by the social, environment and economic factors. Procurement is a business management function that safeguards, identifies, source and manage the external resources an organisation needs to achieve its goals. Therefore sustainable procurement is the acquisition of goods, works and services that incorporate social, environment and economic issues in the procurement process. Public Entities procure without taking into consideration the effect that sustainability will have on the procurement process, staff handling procurement in the Entities are not aware of Sustainable Procurement Practice and the effect that it has on the procurement process. Sustainable procurement is a global phenomenon which ensures public sectors to buy goods and services in socially, economical and environmentally friendly ways. Sustainable Procurement practice is yet to receive the much needed attention in Ghana. This has given rise to the amendment of the Public procurement Act 2003 (Act 663) to incorporate sustainable issues such as Health and Safety, Security, Environment and Social in Public Procurement. This study aims to seek to assess the effect of Sustainable Procurement Practice on the operation of GRIDCo. To realise this aim, the following objectives were set out to assess the extent to which procurement processes in GRIDCo embed sustainability in their procurement process and also to identify the level of awareness of sustainable procurement practice in GRIDCo. A descriptive research design was adopted for this research where a qualitative approach was employed in the collection of data through the administering of questionnaires. The sampling techniques adopted for this research is the purposive sampling techniques because of the technicality of the area that is being studied and that experts in the field were selected to respond to the questionnaires. The population for the study was all staff head office in the Procurement Unit in GRIDCo and also staff from other department in the head office who are involved in the procurement process. The findings on study indicated that, GRIDCo embeds sustainable procurement in their procurement practices and that it impact positively in their procurement process by achieving value for money over a long term period. The study also brought to light about challenges that hinders the full implementation of Sustainable Procurement Practice in GRIDCo. The study further revealed that the staff of GRIDCo is aware of sustainable procurement practice and they employ these practices in their procurement activities. The study also recommended that GRIDCo should roll out a policy document that spells out sustainable development in its operations and also recommended that capacity building and professional training should be given to staff who is involved in the procurement process.

Source: KNUST