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1 Public Procurement System in Tanzania Presentation in the SADCOPAC / EAAPAC Accountability Conference 2012 Windhoek Namibia Presentation prepared by:

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Presentation on theme: "1 Public Procurement System in Tanzania Presentation in the SADCOPAC / EAAPAC Accountability Conference 2012 Windhoek Namibia Presentation prepared by:"— Presentation transcript:

1 1 Public Procurement System in Tanzania Presentation in the SADCOPAC / EAAPAC Accountability Conference 2012 Windhoek Namibia Presentation prepared by: Mathew N. KILEO Clerk Public Accounts Committee Tanzania P.O. Box 9133 Tel: +255 22 2112065/7, Fax: +255 22 2112538 Email: tanzparl@parliament.go.tz Websit: www.parliament.go.tz Dar-es-Salaam Tanzania Welcome Karibuni

2 Reforms in Public Procurement Regime Procurement reforms in Tanzania started way back in 1997. The reforms led to enactment of Public Procurement Act No. 3 in March 2001 (PPA 2001). It became operational in July 2001.

3 Reforms in Public Procurement Regime In 2002 a Country Procurement Review Assessment was carried out which suggested further reforms from centralized to decentralized procurement System The Reforms culminated in enactment of Public Procurement Act 2004. -

4 PPA N0.3 of 2001 PPA No. 21 of 2004 Central Tender Board PPRA Head of PEs chairpers on of TB Head of PEs not chairperson of TB but they appoint members Not applicable to Parastatals not receiving Gov. subvention Applicable to all public bodies including those not receiving subvention PPAA has chairperson and Four Members PPAA has chairperson and six members Procurement Thresholds No Procurement Thresholds Major differences between PPA 2001 and PPA 2004

5 Public Procurement Act No. 21 of 2004 The Public Procurement (Goods, Works, Non-Consultant Services and Disposal of Public Assets by Tender) Regulations GN. No 97 of 2005 The Public Procurement (Employment and Selection of Consultants) Regulations GN. No 98 of 2005 Standard Tender Documents Tender Evaluation Guidelines Guidelines for Preparation of Responsive bids Other Circulars periodically issued by PPRA Regulatory Framework of Procurement in Tanzania Local Government Tender Board (Establishment and Proceedings) Regulations

6 SET UP OF PROCURING ENTITIES ACCOUNTING OFFICER TENDER BOARD Evaluation committees Evaluation committees TB submits to AO approved bidder for notification of award Members recommended by PMU and approved by AO PMU Submit Recommendations to TB for Approval Reports to AO Evaluation report submitted to PMU Provisions to Handle disagreements User Departments PROCUREMENT MANAGEMENT UNIT initiate Requirements, inputs to specifications and in evaluation PPRA PPAA

7 INTERVENTIONS FOR COMPLIANCE WITH PPA 2004 Strong oversight body (PPRA) Capacity of PEs and bidders to implement the Act Proper implementatio n Guidelines Proper system for checking and Monitoring Proper System of Sharing Information

8 8 THE JOURNEY TOWARDS 2015

9 Yes it is achievable as long as every PE aims to achieve Vfm THE JOURNEY- IS IT ACHIEVABLE ????

10 216 PEs Tshs 2.96 trillion 264 PEs Tshs 3.10 trillion 315 PEs Tshs 4.52 trillion The need to improve efficiency – High Expenditure in Public Procurement

11 11 20 PEs 100 PEs 99 PEs 91 PEs 174 PEs TREND OF PROCURING ENTITIES COMPLIANCE WITH PUBLIC PROCUREMENT ACT AND ITS REGULATIONS SINCE FINANCIAL YEAR 2006/07 The need to improve efficiency – Low levels of Compliance

12 Efforts to increase efficiency Many efforts are being undertaken – only few shall be highlighted in this presentation -

13 AREAS OF FOCUS

14 DIVISION OF INFORMATION AND COMMUNICATION TECHNOLOGY DIVISION OF CAPACITY BUILDING AND ADVISORY SERVICES Research and Documentation Section Guidelines Development and Dissemination Section Training and Advisory Services Section Finance and Accounting Section Administration and Human Resources Section DIVISION OF CORPORATE SERVICES Contract Performance Section Monitoring and Evaluation Section DIVISION OF MONITORING AND COMPLIANCE Systems Development and Maintenance Section BOARD OF DIRECTORS CHIEF EXECUTIVE OFFICER INTERNAL AUDIT UNIT Systems Support and Administration Section PROCUREMENT MANAGEMENT UNIT Planning and Coordination Section DIVISION OF LEGAL AND PUBLIC AFFAIRS Public Relations SectionLegal and Secretariat Affairs Section Investigation and Anti- Corruption Section Zonal Services Section NORTHEN ZONE LAKE ZONE COAST ZONE CENTRAL AND SOUTHERN ZONE New Structure- From 51 Staff (2001) to 142 Staff (2004) Expanding PPRA Outreach

15 Mwanza Arusha Iringa DSalaam PPRA TO REACH LGAs – opening of zonal offices

16 -Submits copies of Call Off Orders to PPRA and GPSA -Places and pays for Call Off Order 16 SYSTEM OF PROCUREMENT OF COMMON USE ITEMS AND SERVICES – REDUCED PROCUREMENT TRANSACTION COSTS PROCURING ENTITY SUPPLIER/SERVICE PROVIDER PPRA GPSA -Compiles a list of CUIS -List of CUIS approved -Submits a list of CUIS to GPSA -Aggregates all CUIS from PEs -Decides on the appropriates Procurement Method Invites Tenders Enters into Framework Agreement with winners -Prepares and Maintains CUIS and Suppliers Data Base -Maintains Data on placed Call Off orders as received from PEs -Submits a list of Framework Agreements -Supplies and paid for the call off order

17 17 Efficiency in sharing procurement information to the public

18 18 Efficiency in sharing procurement information to the public

19 19 Efficiency in procurement transactions – e-procurement – Tanzania has done a feasibility study and is currently working on issues relating to system selection, hosting, infrastructure, application, operation and maintenance, as well security

20 20 Amendments to the Act –Notable Amendments to Complaints Review Mechanism

21 21 Bidders complaint HEAD OF PE Presented within 28 days from the day of the event leading to complaint Copy of complaints submitted to PPRA and the RC Before the signing of contract Conduct investigations Decision within 30 days Copy of decision submitted to PPRA and the RC Suspend procurement proceedings PPRA-if not satisfied with the decision or after the expiry of a 30 days period PPAA-if not satisfied with the decision of PPRA or after the expiry of a 30 days period After signing of contract System for Procurement Complaints Review TOTAL 105 DAYS

22 22 Amendments to the Act –Notable Amendments: Integration of procurement plan with budgeting process

23 Challenges Failure by Some PEs to utilize the opportunity for reducing procurement transaction cost e.g use framework contracts for procurement of CUIS and advertize in the TPJ and Authority website Corrupt and fraudulent practices in procurement process despite the effort being spent to prevent and combat them

24 Challenges Commercial operators such as suppliers and service providers, as well as CSOs have not effectively used the opportunities availed by the PPRA to build their capacity PEs to be encouraged to do procurement capability review assessment and allocate resources for capacity building of their staff

25 Way Forward Action to be taken against PEs not demonstrating commitment to reduction of procurement transaction cost Commercial operators should be sensitized to register as appropriate and take part in improving their capacity to withstand the competitive procurement market in the country as well as in the region -

26 Way Forward The CSOs should be empowered to actively participate in advocacy of good governance in public procurement and monitoring of process and outcome in delivery of services The fight against fraud and corruption in public procurement should be intensified by more collaborative initiatives among key stakeholders -

27 WE can all overcome

28 Thank you for listening The End


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