Government of Islamic Republic of Afghanistan Administrative Office of the President

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Sherilyn Payne
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1 Government of Islamic Republic of Afghanistan Administrative Office of the President National Procurement Authority (NPA) Yama Yari B.Eng. M.Sc. D.I.C. Director General

2 Afghanistan at a Glance Capital Kabul Area 652,864 km2 (41 st ) Population (2015 Estimate) Population Density Total GDP (Nominal) 32,564,342 [3] (40th) 43.5/km 2 (150th) $ B Per Capita GDP $659 Administrative Divisions 34 Provinces

- Non-existence of a unified authority for Legal, regulatory, monitoring, capacity building and procurement facilitation.

3 Why Procurement Reform? Procurement Mismanagement and Lack of Capacity - 18% of the GDP and more than 50% of National Budget utilized through procurement. - Non-existence of a unified authority for Legal, regulatory, monitoring, capacity building and procurement facilitation. - Ineffective procurement services have resulted in Low Budget Execution Rate Lack of Sound Policies to Support Private Sector and Local Economy Lack of Coordination and Central Data Collection System Procurement Corruption Contract Mismanagement

4 Previous System: New System: Special Procurement Commission (SPC): Highest contract award approving authority (MoF, MoJ, MoEc) Afghanistan Reconstruction & Development Services (ARDS): Based in Ministry of Economy Procurement Support and facilitation Procurement Policy Unit (PPU): Based in Ministry of Finance Procurement Policy, regulatory and capacity building support Contract Management Office (CMO): Based in Ministry of Finance Secretariat for Special Procurement Commission Too Many & Disconnected Entities National Procurement Commission (NPC): Highest contract award approving authority (H.E. the President, H.E. the Chief Executive, H.E. the 2 nd vice President, MoF, MoJ, MoEc) National Procurement Authority (NPA): Based at the Office of the President Unified & Coordinated

5 NPA Roles, Responsibilities & Functions Governance & Regulation Institutionalization & Service Delivery Procurement Law, Regulation & Policies Capacity Certification Legal & Policy Advisory Services Handling Bid Protests Handling Debarment Process Appeal & Review Committee (Secretariat) Monitoring Procurement Processes Monitoring Contract Implementation Sustainable Capacity Building Professionalization of Procurement National Procurement Institute (NPI) Secretariat Services to the NPC Support & Facilitation to Government Entities Development of Electronic Procurement Institutional Affiliation & Public Outreach System Development & Integration

6 NPA Achievements Institutional Reform Legal and Regulatory Reform Transparent & Efficient Service Delivery Financial Savings Anti Corruption Measures and Cooperation with Integrity Organizations Debarment of Fraudulent Companies

7 Legal & Regulatory Framework Reforms Preliminary Amendments to the Procurement Law Fundamental Revision of the Procurement Law Revision of the Rules of Procedure

8 Service Delivery (Over 7 Months) Procurement Cases Received for NPC Approval Procurement Facilitation Cases Received Works Goods Services Total of 443 Cases Amendment Requests etc. 71 Works Goods Services Total of 177 Cases Procurement Cases Approved by NPC Procurement Cases Facilitated/Under Facilitation Total of 380 Cases Total of 138 Cases Total Value = 63.5 Billion AFN (aprx $1 Billion) Savings = 9 Billion AFN (aprx $ 140 Million)

Transparency & Anti-Corruption Measures Establishment of new Systems & procedures at NPA

NDA Commitment to Fight Corruption Background checks Public Outreach Discovering Corrupt

debarment cases Investigating procurement complaints Partnering with National &

9 Transparency & Anti-Corruption Measures Establishment of new Systems & procedures at NPA with a focus on curbing corruption: Asset Declaration Declaration of Conflict of Interest NDA Commitment to Fight Corruption Background checks Public Outreach Discovering Corrupt Procurement Practices and Taking Action: NPA receives corruption reports Increase in debarment cases Investigating procurement complaints Partnering with National & International Anti Corruption Organizations: IWA Transparency International Global Witness Open Contracting

10 Debarment Number of Debarment Cases Received 52 Appeal & Review Number of Debarred Companies 30 Number of Debar Cases Pending 22 Total Number of Appeal & Review Cases 23 Number of Appeal Cases Reviewed & Resolved 16 Number of Appeal Cases Pending 7

11 Current & Future Plans Vendor Categorization and Registration System Establishment of Afghanistan electronic procurement Establishment of National Procurement Institute Public Private Partnership

12 Road to Electronic Procurement Upgrading the existing PMIS & Website ( Development of e-procurement Readiness Assessment Mid 2016 Development of e-procurement Strategy End of 2016 Systems Development, Deployment and Implementation

13 National Procurement Institute (NPI) Strategy for Sustainable Capacity Building Creation of the National Procurement Institute Academic & On-the-job Training Procurement Certification Professionalization

14 Public Private Partnership (PPP) Draft PPP Regulation Developed (as per Procurement Law) Country Wide Feasibility Study on PPP Projects Roll out of PPP Initiatives

15 Way Forward Independent Procurement Authority E-Procurement Procurement Professional Group Framework Agreements, Open Contracting, Performance Measurement Procurement as a Policy Tool for Economic Growth

16 Thank You

Government of Islamic Republic of Afghanistan Administrative Office of the President National Procurement Authority

Government of Islamic Republic of Afghanistan Administrative Office of the President National Procurement Authority Afghanistan s Electronic Government Procurement The Current Status and Challenges Yama