PUBLIC PROCUREMENT AND SERVICE DELIVERY (5TH SOUTH ASIAN REGIONAL PUBLIC PROCUREMENT CONFERENCE) By Nargis Ghaloo Managing Director Public procurement Regulatory Authority Pakistan
FEDERAL PUBLIC PROCUREMENT REGULATORY AUTHORITY Public Procurement Regulatory Authority (PPRA) is an autonomous body endowed with the responsibility of prescribing regulations and procedures for public procurements of goods, services and works by Federal Government owned public sector organizations 2
PUBLIC PROCUREMENT LEGAL FRAMEWORK OF PAKISTAN PPRA Ordinance 2002 and the Public procurement Rules 2004 are applicable to all procuring agencies of the Federal Government. Open Competitive Bidding is the principle method of procurement All procurements above the minimum threshold of Rs. 100000 (about US$1000) are advertised. 3
PPRA Functions/Powers To improve governance, transparency, accountability and quality of public procurement. To supervise the application & implementation of relevant laws, rules, policies and procedures. To recommend revision/formulation of laws, rules and policies related to public procurement. To formulate regulations on public procurement. To monitor performance of procuring agencies for improvements in their institutional set up. To coordinate and assist procurement agencies in improving their institutional framework To call for any information 4
PREVIOUS PROCUREMENT REGIME General Financial Rules Purchase Manual Delegation of powers to Ministries Autonomous Bodies Rules for procurement Circulars of Ministry of Finance 5
PUBLIC PROCUREMENT LEGAL FRAMEWORK OF PAKISTAN PPRA Ordinance 2002 Public Procurement Rules 2004 Regulations 6
Federal Public Procurement Regulatory Authority (Established in 2004) Sindh Public Procurement Regulatory Authority (Established in 2009). Punjab Public Procurement Regulatory Authority (Established in 2009) KPK Public Procurement Regulatory Authority (Established in 2014) Baluchistan Public Procurement Regulatory Authority (Established in 2010)
NEED FOR PROCUREMENT REFORMS Public procurement suffered from inefficiencies and poor management Lack of professional expertise effective procurement regime Capacity issues of PPRA Gaps in legal framework Lack common vision of procurement processes at the National and sub National Levels Lack of effective data and management Information system 8
ADVISORY GROUP ON PUBLIC PROCUREMENT (AGPP) Advisory Group on Public Procurement was inaugurated in April, 2013. Members Federal and Provisional PPRAs Donors (World Bank, USAID, ADB) Leading Procuring Agencies Reform Agendas Preparation of National Procurement Strategy 2013-16 Revision and improvement of Public Procurement Rules, 2004 Implementation of Training and e-procurement Strategies in collaboration with World Bank
National Procurement Strategy National Procurement Strategy 2013-2016 has been developed to outline a common vision and outlook on making procurement process efficient and transparent in the country. The Strategy endeavors to lay down a roadmap for the Federal and Provincial Regulators which can help them realize the objectives and principles of public Procurement 10
Reform Agenda Harmonization of the legal framework Amendment & revision of laws Development of standard bidding documents Strengthening of procurement planning and its integration with budgetary operations Introducing e- procurement Improving governance and institutional capacity of PPRA and procuring agencies Strengthening of monitoring and oversight capacity of procurement regulatory authorities Capacity building of procuring entities and suppliers
Revision of laws/rules Exercise to revise legal framework commenced in June 2004 with consultation with stakeholders Ministries & Divisions Federal Departments Provincial Governments Provincial PPRAs WB, ADB, USAID, TIP Chambers of Commerce Contractors Association General public through PPRA s website er
Amendments in Law Law extended to disposal of assets Maintain website and upload procurement activities as prescribed by the regulations Five members including one private member will constitute quorum
Amendment in Rules Use of electronic system is allowed Annual procurement plans integrated with budgetary allocation Post procurement review Technical Evaluation report to be uploaded on PPRA website Unsolicited proposals Frame work agreement
contd---- PPRA to formulate training policies on public procurement launch training programmes for Procuring Agencies and the suppliers. Use of electronic system is added to allow e-procurement Concept of Lots is introduced to divide one procurement into lots Rule of Assignment is introduced to allow one procuring agency to assign procurement process or a project to another government department
CONTD/ A Post Contract Report on PPRA website including data of direct contracting and negotiated tendering The contact detail of Grievances Committees constituted by the procuring agencies to be PPRA website Contract to be awarded after settlement of complaints. Negotiations allowed in specific cases Shortlisting of minimum three bidders 16
E-procurement Setting up e-portal Strengthening monitoring and oversight capacity of PPRA through M&E system Setting up electronic database for past contracts, performance of contractors, prices Establish electronic M&E system in large procuring authorities
Capacity Building Develop training strategy Partnering with higher education institutions to develop training modules E-learning through online training Capacity building of procurement personal Mandatory certification for procurement officers Service entry level procurement trainings Training of suppliers
Future Road Map Training and e-procurement Strategies have been developed in consultation with the PPRAs and the World Bank Country Office in Pakistan. World Bank s public financial management and accountability to support service delivery program (program for results) Improved legal framework Capacity building E-procurement Implementation is the key
REFERENCES PPRA Ordinance 2002 Public Procurement Rules, 2004 National Procurement Strategy Training Need Analysis (TNA) and Training Strategy e-procurement Strategy PPRA web portal (www.ppra.org.pk )
THANK YOU
179802 TENDERS MONITORED/UPLOADED ON PPRA WEBSITE DURING THE FINANCIAL YEARS 2012-2017 Financial Year Organizations Tender Uploaded Average Daily Tenders Violations Indicated % PP Rules Violations % PP Rules Compliance 01-07-2012 to 30-06-2013 677 26122 71.57 5721 21.90 8.00 01-07-2013 to 30-06-2014 742 28046 76.84 4458 15.90 8.50 01-07-2014 to 30-06-2015 755 31844 87.24 4304 13.52 10.30 01-07-2015 to 30-06-2016 761 38230 104.74 4054 10.60 12.60 01-07-2016 to 30-06-2017 771 37146 101.77 2745 7.39 35.90 01-07-2017 to 31-12-2017 776 18414 100.62 1021 5.54 25.66 Total 4482 179802 39.69 22303 12.40 30.96