ISLAMIC REPUBLIC OF AFGHANISTAN MINISTRY OF FINANCE · تیروهمج یملاسا...

دافغانستان اسالمی جمهوریتجمهوری اسالمی افغانستان

ISLAMIC REPUBLIC OF AFGHANISTAN

MINISTRY OF FINANCE

PROCUREMENT POLICY DIRECTORATE

AFGHANISTAN

AFGHANISTAN

•Landlocked and mountainous

•South Asia

•Heart of Asia

•Connecting South & East Asia with Central & Western

Asia

•Area: 647,500 Km2

•Population: 30 M (2005 est)

•border countries: China 76 km, Iran 936 km, Pakistan

2,430 km, Tajikistan 1,206 km, Turkmenistan 744 km,

Uzbekistan 137 km

•GPD per Capita: $ 678

PUBLIC PROCUREMENT REFORM

May 2003 –Procurement review carried out and a number of

serious constraints were identified

• Limited procurement capacity at all levels

• Lack of best International practice based Legal Framework

• Lack of ownership of procurement

• No consistency in the structures of the line ministries

• Lack of adequate Standards in procurement

The main priority/recommendations were as follows:

• Preparation of public Procurement Regulation

• Establishment of Procurement Policy Unit

• Adaption of regulations, SBDs to implement the PPL

• Capacity Development Program on procurement

• Institutional Development/arrangements

3


Procurement Policy Unit • established August, 2006

• policy and professional development, and as a performance monitoring organ in the field of procurement

Focusing on• Regulatory Framework

• Institutional Development

• Capacity Development

• PMIS (e-GP)

Objectives• establish and ensure continuity of a transparent, accountable, efficient and effective

IT based Public Procurement System in the country, based on sound legal andinstitutional framework where all the public procuring entities have fully developedcapacities to perform their full procurement function.

4


Regulatory Framework

• Public Procurement Law – October 2005 (amended twice and 3 time under process• Rules of Procedures for Public Procurement• SBD for Goods• SBD for Civil works (small)• SBD for Civil Works (Large and Plants)• RFP• SBD for Non-Consultancy Services• SBD for Health Sector• SRFQ for Works and Goods• Operational Manual for Appeal Review Mechanism• Operational Manual for SPC• 55 Policy Circulars

5


Capacity Development

• Since December, 2007 – Training Institute with 15 staff

• Standard Basic Training – 2 week

• Standard Intermediate Training – 3 weeks

• Special/Short Term trainings – 3 to 4 days

• 25 Procurement Capacity Building Officers (PCBOs)

• 25 Procurement Controllers in 45 procuring entities

• 50 Procurement Specialists

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CAPACITY BUILDING

3300

1326

1016230177

6049

Total

Basic

Intermediate

Special

Short term

PMIS

Total

1663

728

1016230177

3814

Central (Dec 2007 -Dec 2013)

Basic

Intermediate

Special

Short term

PMIS

Total

1637

598

000

2235

Provincial (Dec 2007 - Dec 2013)

Basic

Intermediate

Special

Short term

PMIS

Total

Institutional Development : This Includes

Standardize and unify the Procurement

Department Structure

Revising the Structure based on volume of

work and budget

Revising TORs

22 line Ministries have been completed

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Institutional Development: This Includes

• Standardize and unify the Procurement Department Structure

• Revising the Structure based on volume of work and budget

• Revising TORs

• 22 line Ministries have been completed

Procurement Management Information System (PMIS)

• automated functions for communication

• document management and Procurement Information

• Enable users to develop monitoring & evaluation skills

• Support different stake holders & making decisions by providing data and feed back

• Develop a system of communication between various stake holders on procurement

information to ensure a two-way flow of information

• Institute a mechanism of data analysis & information processing to fast track the

implementation of the new procurement Law



PMIS Cont.

• facilitate compatibility of sharing information in local languages, simplifying the procedures, and reduction of costs in procurement practices.

• create a website for dissemination of information on public procurement in Afghanistan.

Public Web Portal: To provide the online facility of easy public access to standard procurement documents including:

• Procurement Law• Standard Bidding Documents• Appeal and Review• PPU Circulars• Procurement Rules of Procedures

PPU PMIS Modules: To provide PPU with online services including:

• Monitoring / Reporting of procurement activities within procurement entities.• Preparing the list of Debarred Bidders.• Adding new procurement entities.• User Registration/Management• News Management• Training Registration Management


PMIS Cont.

PMIS Modules for Line Ministries: To provide electronic services for Procurement Entitiesincluding:

• Procurement Plan Submission• Entering the Procurement Monitoring Data• Bidders Registration• Contract Awards• Bidding Opportunities

Public PMIS Modules: To provide a data dissemination facility by dynamic contents to public users including:

• List of Registered Bidders• List of Debarred Suppliers• Bidding Opportunities• Contract Awards• Registering for Training

DATA FROM PMIS

111 230

2793 2578

3381

0

500

1000

1500

2000

2500

3000

3500

4000

2010 2011 2012 2013 2014

Procurement plans

Procurement plans

PERFORMANCE DATA FROM PMIS

35 51

642 623

166

0

100

200

300

400

500

600

700

2010 2011 2012 2013 2014

Procurement Monitoring

Procurement Monitoring


33 4

445

1200

118

0

200

400

600

800

1000

1200

1400

2010 2011 2012 2013 2014

Awarded contracts

Awarded contracts

28

500531

100

0

100

200

300

400

500

600

2010 2011 2012 2013 2014

Registred bidders

Registred bidders



359

309

66

0

50

100

150

200

250

300

350

400

2012 2013 2014

Bidding Opportunities Statistics


30

31

32

33

34

35

36

37

Debarred bidders Under process

Debarred Bidders


1556

36

105

6

128

459

59

Procurement Process in Days maximum to publish a bid invitation after it hasbeen approved (rare case)

minimum to publish a bid invitation after it hasbeen approved

the average it takes to evaluate a bid after ithas been received. 40% take over 45 days

the maximum number of days it takes toevaluate a bid after it has been received. 40%take over 45 daysMinimum it takes to evaluate a bid after it hasbeen received

the average it takes to complete the wholeprocurement process. 67% take over 100 days

the maximum it takes any ministry to completethe whole procurement process

the minimum it takes any ministry to completethe whole procurement process.


0

100

200

300

400

500

600

700

800

900

1000

Procurement by Method

Open Tendering

Resticted tendering

Single Source

RFQ

Total


Special Procurement Commission (SPC)

• Established under PPL

• Unlimited authority under the Law to grant approval for procurement contracts

• Referred to SPC when beyond the Award Authority thresholds

Members

• Minister of Finance – Member and Chairman

• Minister of Justice – Member

• Minister of Economy – Member

21


Contract Management Office (CMO)

• Established as per PPL

• Provides secretariat support to SPC in reviewing the documents

22

APPEAL AND REVIEW MECHANISM

Administrative Review Committee

• Established as per PPL

• Review bidders’ complains

• Take Decisions

Members

• Public and Private Sector

23

0

10

20

30

40

50

60

70

80

90

100

2007 2008 2009 2010 2011 2012 2013 Total

Complains

Complains

NATIONAL PROCUREMENT CONFRERNCE

When

• November 05, 2013

Participants

• Ministers

• Deputy Ministers

• Ambassadors

• Heads of Donor Agencies

• Heads of Procurement

Agenda

• Impact of Procurement on Budget Execution and on “on-budget” finance

• Procurement performance and related data

• Implementation of Procurement law, Build Capacity to Decentralize Procurement

Conference Outcome

• Synchronise all ministries to execute an IT based public procurement management with “one

procurement voice” (law, policies and implementation).

• Concrete actions by removing unnecessary approval layers, empowering procurement staff, and

streamlining procurement performance to establish firm accountability of all funds expended in budget

execution affecting procurement to prevent waste, fraud and abuse.

• Remain within defined roles and responsibilities and act within the confines of the Constitution

concerning procurement.

FUTURE PLAN

Regulatory & Legal Framework

• Issuance of SBDs in Pashto Language

• Simplify Bidding Documents

• Prepare Procurement Manual

• Prepare Regulation on PPP

• Prepare Regulation on Reverse Auction

FUTURE PLAN

Capacity Building

• Strengthen/revise Training Curriculum for Basic and Intermediate

• Prepare Advance Standard Training Curriculum

• Develop Professionalized Procurement Module as Diploma courses

FUTURE PLAN

Institutional Development

• All Ministries, independent Directorates and Provinces.

FUTURE PLANPMIS

• e-Bid Submission

• e-Contract Management

• e-Purchasing

• Reverse Auction

• E-Learning

BOTTLENECKS• Low level of participation in PMIS by line Ministries

• Low capacity and National and Particular at Sub-National Level

• weak ICT infrastructure

• Resistance to Change

• No dedicated staff for PMIS data entry

• Extra steps in the procurement process introduced by ministries that have no basis in

law

• Interference in procurement decisions by senior management

• Interference by agencies having no mandate

• Lack of understanding of procurement law among senior management

• Fear of prosecution by AGO and other investigative bodies

• Lack of authority of procurement officers

• No Harmonization of Procurement Guidelines among the Donors

• Lack of Coordination among the Donors

• Lack of Power Delegation/Trust

• Absence of Incentive/Reward Mechanism

• Lack of Procurement Expertise

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STEPS TO ADDRESS THE BOTTLENECKS

• Effective dialogue between MOF, other ministries and key business associations to

improve transparency and trust in public procurement

• Mitigation/reduction of undue influences on contracting officials

• Determine the best way to synchronize all ministries to execute on public procurement

With one procurement voice” (law, policies and implementation)

• Review procurement thresholds to avoid signature excess

• Establish viable Procurement Offices within Provincial and Governor’s Offices

• Determine how to reduce centralization and empower procurement staff

• Build capacity at sub-national level

• Devise strategies to organize and energize sub-national markets for goods and services

• Strengthen and Expand the Capacity Development Program

• Harmonization of Donor Guidelines and use of Country System

• Build the Procurement Capacity of the Investigating bodies.

• Apply reward and punishment mechanism

• Enhance the Procurement Knowledge among senior management

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