Public Procurement Reforms

1. Session: M1-1 Public Procurement Reforms CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop

2. Public Procurement “Procurement means the purchasing or hiring of Goods, or acquisition of Goods through purchasing and hiring, and the execution of Works and performance of Services by any contractual means In 1999, WB and ADB conducted joint review of the country portfolio performance and prepared an action plan for government on public procurement CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop

3. Background CPAR,2002 prepared by WB, in agreement with the GoB, identified several deficiencies in the procurement system of the GoB: • Absence of sound legal framework governing public sector procurement • Complex bureaucratic procedure causing delay   • Lack of adequate professional competence of staff to manage public procurement   • Generally poor quality bidding documents and bid evaluation    • Ineffective administration of contracts    • Absence of adequate mechanism for ensuring transparency and accountability Government approved the implementation of the "Public ProcurementReform Project" with IDA assistance on 14 February, 2002 CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop

4. Set up a Public Procurement Policy Unit Issue Public Procurement Rules Streamline Proc. Process & Financial Delegation Develop Procurement Management Capacity Publish Contract Awards Introduce Appeal Procedures CPAR Key Recommendations To GoB CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop

5. IDA Credit (TA): August 2002/ ~$ 5 million/ 4 years Objectives: Improve (i) governance; (ii) efficiency, transparency and accountability; (iii) people’s confidence in country systems Elements of Reform: Establishing Procurement Policy Unit (CPTU) Implementing Reforms/ Rules Improving Procurement Management Capacity Public Procurement Reform Project CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop

6. Brief Chronicles • CPAR (joint coll. with The World Bank):  May ‘01 • Procurement Policy Unit (CPTU) :  Apr. ‘02 • Proc Reform Project (PPRP) :  Aug. ‘02 • Public Proc. Regulations (PPR) :  Oct. ‘03 • Imp. Procedures & Key SDs :  Apr. & Aug. ’04 • MIS (Proc. Perform. Tracking) :  Oct. ‘06 • Poverty Reduction Strategy Paper :  Dec. ‘05 • Follow-on PPRP II :  Sept. 07 • Nat. Trainers- 25p & training- 1800p :  as of Sept. ’07 • Proc Act and Proc Rules (effective) :  Jan. ’08 • Proc Act; amendment :July,07&Nov.’09,Jul.’10 • Proc Rules: amendment :  Aug. ’09 CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop

7. Public Procurement Reform Project II Why ? • Despite good progress • application of the national procurement rules proven to be relatively inconsistent across government and within individual agencies, and • actual implementation of the regulations is slow with less progress in improving tangible outcomes on the ground • Potential challenges that constrain • the achievement of better • procurement outcomes include : • inadequate enforcement of regulations • delays in contract award • ineffective contract administration • Inadequate procurement professionalism • incidence of fraud and corruption • political interference To address these, a new technical assistance credit, “Public Procurement Reform Project II” was proposed to move the reform process further CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop

8. Objective of PPRP II To improve performance of the public procurement system focusing largely on the key sectoral ministries & targeting their IAs with the following outputs: • Enhanced capacity in creating a sustained program of developing skilled procurement professionals • Strengthened management and monitoring of procurement in target agencies • Introduction of eGP in those agencies and CPTU on a pilot basis • Creation of greater public awareness of a well functioning public procurement system by engaging civil society, think tanks, beneficiaries, and the private sector CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop

9. Principal Role of CPTU CPTU established by the IMED of the Ministry of Planning, for carrying out the purposes of the Act & the Rules Section 67 (PPA 2006) CPTU performs the following responsibilities: • monitoring compliance with and implementation of this Act • arranging for performance of the necessary functions & responsibilities incidental thereto • performing any other responsibilities CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop

10. Further Role of CPTU Rule-130 CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop

11. CPTU & PE’s CPTU is further referenced in other issues: CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop

12. Approved Revised Structure of CPTU Director General 1 x Director General 1 x Sr. Computer Operator 1 x Personal Officer 1 x Photocopier Operator 1 x Driver 1 x MLSS Director (Rules & Procedure) Director (Capacity Dev. & Co-ordination) Director Monitoring & Evaluation System Analyst (e-GP & IT) 1 x Director 1 x Sr. Computer Operator 1 x MLSS 1 x Director 1 x Sr. Computer Operator 1 x MLSS 1x Director 1 x Sr. Computer Operator 1 x MLSS 1 x System Analyst 1 x Computer Operator Deputy Director (Works) Deputy Director (Tech. Support to Agencies) Deputy Director/ Programmer (M&E) Assistant Maintenance Engineer 1 x Deputy Director 1 x Computer Operator 1 x Deputy Director 1 x Computer Operator 1 x Deputy Director/Programmer 1 x Computer Operator 1 x Asstt. Maintenance Engineer Deputy Director (Goods & Services) Assistant Director (Training) Assistant Programmer Assistant Director (M&E) 1 x Deputy Director 1 x Computer Operator 1 x Asstt. Director 1 x Computer Operator 1 x Assistant Programmer Deputy Director (Operational & Management Services) 1 x Asstt. Director 1 x Computer Operator Assistant Programmer / Information Analyst Assistant Director (Co-ordination) 1 x Deputy Director 1 x Computer Operator 1 x Asstt. Director 1 x Computer Operator 1 x Asstt. Programmer/ Information Analyst Note : 1. Total number of staff from revenue budget of Government : 37 nos CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop

13. PPA 2006 and PPR 2008 Guiding principle in designing PPA & PPR Primary legislation focuses on main public procurement issues Secondary legislation addresses those which, although being important for a proper and effective public PPA 2006 PPR 2008 procurement procedure to be carried out, may be better spelled out in the secondary legislation CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop

14. Key features of PPA 2006 and PPR 2008 PPA 2006 • Gist of any secondary legislation is to flesh out the principles of law sketched out in the primary legislation • Feature of secondary legislation be more detailed • Primarily in order to provide contracting authorities with more specific indications of how public procurement procedures are carried out PPR 2008 This broad approach explains why there isno predefinedcontent for secondary legislation and, conversely, it may be difficult to identify the precise boundaries within which it should be expanded CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop

15. Key features of PPA 2006 & PPR 2008 PPA 2006 Various issues in the PPA mentioned only in passing, sketched out or not dealt with at all. Few of them are: • organization, competences & procedures of the CPTU • thresholds for procurement procedures • electronic procurement • details of Tender & Performance Security • documents required for meeting requirements of PEs • submission and opening of Tenders • contract award criteria • negotiations • review of complaints & appeals procedure PPR 2008 CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop

16. Key features of PPA 2006 & PPR 2008 PPA 2006 • On various occasions the PPA directly requires obligatory adoption of rules/regulations • PPR 2008 prepared based on the PPA 2006, along with other relevant implementation documents, formats, models, guidelines, instructions PPR 2008 CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop

17. Scope & application of PPA 2006 Act [Section 3 & 4] • PPA extends to the whole of Bangladesh • Override other laws: Notwithstanding anything contained in any other law, the provisions of the PPA shall prevail CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop

18. Scope & Application Act [Section 3 & 4] & Rule - 3 PPR shall apply to : Procurement by PEs using public funds Procurement by any government, semi-government or any statutory body established under any law Procurement using public funds by a company registered under the Companies Act, 1994 (Act No. 18 of 1994) Procurement under a loan, credit or grant agreement or under any other agreement with a development partner or with a foreign state or an organisation, provided that if there is anything to the contrary in any such agreement entered into, the provision of that agreement shall prevail CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop

19. Chapterwise Contents CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop

20. Rule Schedules CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop

21. Provisions in Act e-Government Procurement Section 65 • e-GP • For carrying out the purposes of this Act, any or all government procurement under this Act may be undertaken using electronic processing systems • (2) The electronic processing system and the principles governing such system shall be prescribed by the Government e-GP is likely to serve as a tool contributing effectively to deter inappropriate and threatening tendering practices in the country and will help fight corruption CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop

22. Business Governments High Value, Low Volume Procurement (E-TENDERS) Low Value, High Volume Procurement (E-PURCHASING) Contract E-Management e-Procurement: Strategy CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop

23. e-Procurement System: goals Process simplification Transparency Reducing procurement time Communicating and publishing data on tender procedures and awarding criteria Public Spending Optimization Innovation Quality change management among public officials and suppliers through the use of EPROCUREMENT Improving value for money CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop

24. e-Procurement System CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop