Presentation on theme: "Public Procurement Regulatory Authority"— Presentation transcript:
1 Public Procurement Regulatory Authority Public Procurement Experience of Pakistan (2ND South Asian Regional Public Procurement Conference)ByAlam Zeb Khan(Director General)Public Procurement Regulatory Authority
2 Sequence of Presentation Need for Procurement Reforms in PakistanPublic Procurement Legal Framework of PakistanPerformance of PPRA since its establishmentCapacity Building Initiatives of PPRAReforms Agenda of PPRA
4 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
5 Need for Procurement Reforms in Pakistan World Bank’s Study of In 1997 – 98, the World Bank auditors reviewed 4524 contracts and found deficiencies in 3700 contracts.
6 Need for Procurement Reforms in Pakistan Findings of W.B CPA Report 2000Outdated rules and regulationsPublic procurement suffered from inefficiency, and poor management.Inadequately trained and poorly paid public sector procurement professionalsComplicated and non-transparent procurement procedures discouraged sound planning, thorough evaluationInadequate record keeping and restrictive bidding
7 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 agencyThe regulatory body to be mainly confined to policy, documentation, development of rules, etc.Not to involve in line clearance functions for award of contracts
9 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
10 Public Procurement Legal Framework of Pakistan PPRA Ordinance 2002Public Procurement Rules 2004Following Four Regulations issued so far:PPRA Regulations 2008PPRA Regulation 2009Consultancy Services Regulations 2010PPRA Regulation 2011
11 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
12 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 procurementAll procurements above the minimum threshold of Rs (about US$1000) are advertised.
14 Performance of PPRA Administrative setup of PPRA PPRA is a very lean organizationTotal number of employees is 508 officers, and 42 staffTotal budget for current year is Rs. 43M
15 Performance of PPRAtenders monitored/uploaded on PPRA website during the Financial YearsFinancial YearOrganizationsTender UploadedAverage Daily TendersPP Rules Violations% Violations25511905321131195.0127417124471278274.6429320226551365767.5229517078991758.072901791349472026.353501840450388321.103852088057273813.115822410466250610.406772612171572121.90Total34011737554746723538.70
18 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
21 Capacity Building Initiatives of PPRA Training 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.
22 Capacity Building Initiatives of PPRA 4501 Officials trained in Public Procurement during the Financial YearsFinancial YearTraining ProgrammesNo. Participants2280733977328813576219343326405Total1824501
25 Capacity building initiatives of PPRA Learning Management SystemPresent training capacity of PPRA is 480 per yearThrough development of LMS PPRA will be able to train around 3000 persons per annum, through online/virtual system
26 Challenges Faced By PPRA Shortage of office space.Shortage of Human Resource.Capacity Building of Human Resource.Lack of power to take action on PP Rules Violations.Budgetary constraints
28 Reforms Agenda of PPRA Advisory Group on Public Procurement (AGPP) Preparation of National Procurement StrategyRevision and improvement of Public ProcurementRules, 2004Improvement and / or preparation of Public Procurement Regulations
29 Reforms Agenda of PPRA Review of the SBD for Civil Works Preparation of SBDs for GoodsPreparation of SBDs for ServicesProcurement Code of Ethic
30 Establishment of PPRA Monitoring and Evaluation System Reforms Agenda of PPRAEstablishment of PPRA Monitoring and Evaluation SystemRevamping of the PPRA websiteDevelopment of HR-Pay Role ModuleAccounting Software developed
31 Reforms Agenda of PPRAThe PPRA Service Regulations 2013 approved by the PPRA Board on 30th September, 2013Market 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.