Public Procurement Experience of Pakistan (2ND South Asian Regional Public Procurement Conference) Public Procurement Regulatory Authority

Sequence of PresentationNeed for Procurement Reforms in Pakistan

Public Procurement Legal Framework of Pakistan

Performance of PPRA since its establishment

Capacity Building Initiatives of PPRA

Reforms Agenda of PPRA

Need for Procurement Reforms in Pakistan

Need for Procurement Reforms in Pakistan

Previous Procurement RegimesGeneral Financial Rules (1951/1979) (Stores etc)Purchase Manual of Deptt of Supplies and DisposalsDelegation of Powers to Ministries (Overlapping)Autonomous Bodies had their own RulesVarious Circulars of Ministry of Finance

Need for Procurement Reforms in PakistanWorld Banks Study of 1997-98In 1997 98, the World Bank auditors reviewed 4524 contracts and found deficiencies in 3700 contracts.

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Need for Procurement Reforms in Pakistan

Findings of W.B CPA Report 2000

Outdated rules and regulations

Public procurement suffered from inefficiency, and poor management.

Inadequately trained and poorly paid public sector procurement professionals

Complicated and non-transparent procurement procedures discouraged sound planning, thorough evaluation

Need for Procurement Reforms in Pakistan Word Bank RecommendationsEnacting a public procurement law based on UNCITRAL Model Law;

Creating a small, professionally staffed, independent regulatory agency

The regulatory body to be mainly confined to policy, documentation, development of rules, etc.

Not to involve in line clearance functions for award of contracts

Public Procurement Legal Framework of Pakistan

Public Procurement Legal Framework of Pakistan

Pakistan is a Federation consisting of the four federating units; in addition to two other regions:PunjabSindh, Khyber PakhtunkhwaBalochistanAzad Jammu and KashmirGilgit-Baltistan

Public Procurement Legal Framework of PakistanPPRA Ordinance 2002Public Procurement Rules 2004Following Four Regulations issued so far:

PPRA Regulations 2008PPRA Regulation 2009Consultancy Services Regulations 2010PPRA Regulation 2011

Public Procurement legal Framework of Pakistan Composition of the PPRA Board:Secretary, Finance Division (Chairperson)Secretary, Ministry of Industries and Production (3) Secretary, Defence Production Division (4) Secretary, Ministry of Water and Power (5) Secretary, Ministry of Housing and Works(6) Secretary, Ministry of Communications(7) Three Members from private sector (8) Managing Director

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/default method of procurement

All procurements above the minimum threshold of Rs. 100000 (about US$1000) are advertised.

Performance of PPRA

Performance of PPRAAdministrative setup of PPRA

PPRA is a very lean organization

Total number of employees is 50

8 officers, and 42 staff

Total budget for current year is Rs. 43M

Performance of PPRA173755 tenders monitored/uploaded on PPRA website during the Financial Years 2004-2013

Financial YearOrganizationsTender UploadedAverage Daily TendersPP Rules Violations% Violations2004-0525511905321131195.012005-0627417124471278274.642006-0729320226551365767.522007-082951707847991758.072008-092901791349472026.352009-103501840450388321.102010-113852088057273813.112011-125822410466250610.402012-136772612171572121.90Total34011737554746723538.70

Performance of PPRA

Performance of PPRA

Performance of PPRAUploading of PP Rules Violations on PPRA website started in May 2012.

Compliance of PP Rules has increased from 1% in May 2012 to 10% at the moment .

Procurement Plans of 205 Procurement Agencies have been uploaded during the current financial year as against 9 last year.

201220139205

Performance of PPRA

Capacity Building Initiatives of PPRA

Capacity Building Initiatives of PPRATraining of the Government officials in procurement started in 2006 under a 3 years World Bank Capacity Building Project.

In 2009, PPRA training activities were formalized through the establishment of National Institute of Procurement (NIP)

Presently PPRA imparting training through its own resources.

Capacity Building Initiatives of PPRA4501 Officials trained in Public Procurement during the Financial Years 2006-2013.

Financial YearTraining ProgrammesNo. Participants2006-07228072007-08339772008-09328812009-10357622010-11193432011-12193262012-1322405Total1824501

Capacity building initiatives of PPRALearning Management SystemPresent training capacity of PPRA is 480 per year

Through development of LMS PPRA will be able to train around 3000 persons per annum, through online/virtual system

Challenges Faced By PPRAShortage of office space.Shortage of Human Resource. Capacity Building of Human Resource.Lack of power to take action on PP Rules Violations.Budgetary constraints

Reforms Agenda of PPRA

Reforms Agenda of PPRAAdvisory Group on Public Procurement (AGPP)

Preparation of National Procurement Strategy 2013-16

Revision and improvement of Public Procurement Rules, 2004

Improvement and / or preparation of Public Procurement Regulations

Reforms Agenda of PPRAReview of the SBD for Civil Works

Preparation of SBDs for Goods

Preparation of SBDs for Services

Procurement Code of Ethic

Reforms Agenda of PPRAEstablishment of PPRA Monitoring and Evaluation System

Revamping of the PPRA website

Development of HR-Pay Role Module

Accounting Software developed

Reforms Agenda of PPRAThe PPRA Service Regulations 2013 approved by the PPRA Board on 30th September, 2013

Market based Pay Package approved by the PPRA Board, subject to fulfilment of certain formalities.

For financial autonomy, PPRA Financial Regulations/Accounting Procedure at a very advanced stage.

Thanks

**Inadequate record keeping and restrictive bidding****