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Public Procurement Regulatory Authority

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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) By Alam Zeb Khan (Director General) Public Procurement Regulatory Authority

2 Sequence of Presentation
Need 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

3 Need for Procurement Reforms in Pakistan

4 Need for Procurement Reforms in Pakistan
Previous Procurement Regimes General Financial Rules (1951/1979) (Stores etc) Purchase Manual of Deptt of Supplies and Disposals Delegation of Powers to Ministries (Overlapping) Autonomous Bodies had their own Rules Various 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Findings of W.B CPA Report 2000 Outdated rules and regulations Public procurement suffered from inefficiency, and poor management.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 Inadequate record keeping and restrictive bidding

7 Need for Procurement Reforms in Pakistan
Word Bank Recommendations Enacting 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

8 Public Procurement Legal Framework of Pakistan

9 Public Procurement Legal Framework of Pakistan
Pakistan is a Federation consisting of the four federating units; in addition to two other regions: Punjab Sindh, Khyber Pakhtunkhwa Balochistan Azad Jammu and Kashmir Gilgit-Baltistan

10 Public Procurement Legal Framework of Pakistan
PPRA Ordinance 2002 Public Procurement Rules 2004 Following Four Regulations issued so far: PPRA Regulations 2008 PPRA Regulation 2009 Consultancy Services Regulations 2010 PPRA 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 procurement All procurements above the minimum threshold of Rs (about US$1000) are advertised.

13 Performance of PPRA

14 Performance of PPRA Administrative 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

15 Performance of PPRA tenders monitored/uploaded on PPRA website during the Financial Years Financial Year Organizations Tender Uploaded Average Daily Tenders PP Rules Violations % Violations 255 11905 32 11311 95.01 274 17124 47 12782 74.64 293 20226 55 13657 67.52 295 17078 9917 58.07 290 17913 49 4720 26.35 350 18404 50 3883 21.10 385 20880 57 2738 13.11 582 24104 66 2506 10.40 677 26121 71 5721 21.90 Total 3401 173755 474 67235 38.70

16 Performance of PPRA

17 Performance of PPRA

18 Performance of PPRA Uploading 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. 2012 2013 9 205

19 Performance of PPRA

20 Capacity Building Initiatives of PPRA

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 Years Financial Year Training Programmes No. Participants 22 807 33 977 32 881 35 762 19 343 326 405 Total 182 4501



25 Capacity building initiatives of PPRA
Learning Management System Present 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

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

27 Reforms Agenda of PPRA

28 Reforms Agenda of PPRA Advisory Group on Public Procurement (AGPP)
Preparation of National Procurement Strategy Revision and improvement of Public Procurement Rules, 2004 Improvement and / or preparation of Public Procurement Regulations

29 Reforms Agenda of PPRA Review of the SBD for Civil Works
Preparation of SBDs for Goods Preparation of SBDs for Services Procurement Code of Ethic

30 Establishment of PPRA Monitoring and Evaluation System
Reforms Agenda of PPRA Establishment of PPRA Monitoring and Evaluation System Revamping of the PPRA website Development of HR-Pay Role Module Accounting Software developed

31 Reforms Agenda of PPRA The 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.

32 Thanks

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