1. CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop Session: M1-1 Slide No.1/24 Public Procurement Reforms Session: M1-1

2. CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop Session: M1-1 Slide No.2/24 Public Procurement “Procurement means the purchasing or hiring of Goods, or acquisition of Goods through purchasing and hiring, and the execution of Works and performance of Services by any contractual means In 1999, WB and ADB conducted joint review of the country portfolio performance and prepared an action plan for government on public procurement

3. CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop Session: M1-1 Slide No.3/24 Background  Absence of sound legal framework governing public sector procurement  Complex bureaucratic procedure causing delay  Lack of adequate professional competence of staff to manage public procurement  Generally poor quality bidding documents and bid evaluation  Ineffective administration of contracts  Absence of adequate mechanism for ensuring transparency and accountability CPAR,2002 prepared by WB, in agreement with the GoB, identified several deficiencies in the procurement system of the GoB: Government approved the implementation of the "Public Procurement Reform Project" with IDA assistance on 14 February, 2002

4. CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop Session: M1-1 Slide No.4/24  Set up a Public Procurement Policy Unit  Issue Public Procurement Rules  Streamline Proc. Process & Financial Delegation  Develop Procurement Management Capacity  Publish Contract Awards  Introduce Appeal Procedures To GoB CPAR Key Recommendations

5. CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop Session: M1-1 Slide No.5/24  IDA Credit (TA): August 2002/ ~$ 5 million/ 4 years  Objectives: Improve (i) governance; (ii) efficiency, transparency and (ii) efficiency, transparency and accountability; accountability; (iii) people’s confidence in country (iii) people’s confidence in country systems systems Elements of Reform: Elements of Reform: Establishing Procurement Policy Unit (CPTU)Establishing Procurement Policy Unit (CPTU) Implementing Reforms/ RulesImplementing Reforms/ Rules Improving Procurement Management CapacityImproving Procurement Management Capacity Public Procurement Reform Project

6. CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop Session: M1-1 Slide No.6/24 Brief Chronicles  CPAR (joint coll. with The World Bank):  May ‘01  Procurement Policy Unit (CPTU) :  Apr. ‘02  Proc Reform Project (PPRP) :  Aug. ‘02  Public Proc. Regulations (PPR) :  Oct. ‘03  Imp. Procedures & Key SDs :  Apr. & Aug. ’04  MIS (Proc. Perform. Tracking) :  Oct. ‘06  Poverty Reduction Strategy Paper :  Dec. ‘05  Follow-on PPRP II :  Sept. 07  Nat. Trainers- 25p & training- 1800p :  as of Sept. ’07  Proc Act and Proc Rules (effective) :  Jan. ’08  Proc Act; amendment :  July,07&Nov.’09,Jul.’10  Proc Rules: amendment :  Aug. ’09

7. CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop Session: M1-1 Slide No.7/24 Public Procurement Reform Project II Despite good progress  application of the national procurement rules proven to be relatively inconsistent across government and within individual agencies, and  actual implementation of the regulations is slow with less progress in improving tangible outcomes on the ground Potential challenges that constrain the achievement of better procurement outcomes include :  inadequate enforcement of regulations  delays in contract award  ineffective contract administration  Inadequate procurement professionalism  incidence of fraud and corruption  political interference Why ? To address these, a new technical assistance credit, “Public Procurement Reform Project II” was proposed to move the reform process further

8. CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop Session: M1-1 Slide No.8/24 Objective of PPRP II  Enhanced capacity in creating a sustained program of developing skilled procurement professionals  Strengthened management and monitoring of procurement in target agencies  Introduction of eGP in those agencies and CPTU on a pilot basis  Creation of greater public awareness of a well functioning public procurement system by engaging civil society, think tanks, beneficiaries, and the private sector To improve performance of the public procurement system focusing largely on the key sectoral ministries & targeting their IAs with the following outputs:

9. CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop Session: M1-1 Slide No.9/24 Principal Role of CPTU Section 67 (PPA 2006) CPTU performs the following responsibilities:  monitoring compliance with and implementation of this Act  arranging for performance of the necessary functions & responsibilities incidental thereto  performing any other responsibilities CPTU established by the IMED of the Ministry of Planning, for carrying out the purposes of the Act & the Rules

10. CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop Session: M1-1 Slide No.10/24 Further Role of CPTU CPTU RESPONSIBILITIES Advice & assist PEs Prepare & distribute STDs Submit an Annual Report to GoB Request/ receive/evaluate info from PEs Develop a PP website Publish bulletin on ads and procurement Amend legislation Rule-130

11. CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop Session: M1-1 Slide No.11/24 CPTU & PE’s CPTU Public ac ce ssi bili ty of Pr oc ur em en t Act Preparation of Procurement Pla n Procurement Approval Procedure Termination & Disputes Records of Pr oc ur em en t Procurement Post Review Non- dis cri mi na tio n Submission of Complaints Formation of Review Pa nel s Suspend of No tifi cat ion of Award Advertisemen t Completion of the Process Professional Mi sc on du ct, Offences CPTU is further referenced in other issues:

12. CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop Session: M1-1 Slide No.12/24 Director (Capacity Dev. & Co-ordination) Approved Revised Structure of CPTU 1 x Director General 1 x Sr. Computer Operator 1 x Personal Officer 1 x Photocopier Operator 1 x Driver 1 x MLSS Director (Rules & Procedure) 1 x Director 1 x Sr. Computer Operator 1 x MLSS Deputy Director (Works) 1 x Deputy Director 1 x Computer Operator Deputy Director (Goods & Services) 1 x Deputy Director 1 x Computer Operator Deputy Director (Operational & Management Services) 1 x Deputy Director 1 x Computer Operator Deputy Director (Tech. Support to Agencies) 1 x Deputy Director 1 x Computer Operator Assistant Director (Training) Director Monitoring & Evaluation 1 x Director 1 x Sr. Computer Operator 1 x MLSS Assistant Director (M&E) 1 x Deputy Director/Programmer 1 x Computer Operator 1 x Asstt. Director 1 x Computer Operator Assistant Director (Co-ordination) 1 x Asstt. Director 1 x Computer Operator 1 x Asstt. Director 1 x Computer Operator 1 x Director 1 x Sr. Computer Operator 1 x MLSS Deputy Director/ Programmer (M&E) System Analyst (e-GP & IT) 1 x System Analyst 1 x Computer Operator Assistant Programmer 1 x Asstt. Maintenance Engineer 1 x Assistant Programmer Assistant Programmer / Information Analyst 1 x Asstt. Programmer/ Information Analyst Assistant Maintenance Engineer Director General Note : 1. Total number of staff from revenue budget of Government : 37 nos

13. CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop Session: M1-1 Slide No.13/24 PPA 2006 and PPR 2008 PPA 2006 PPA 2006 PPR 2008 PPR 2008 Primary legislation focuses on main public procurement issues Secondary legislation addresses those which, although being important for a proper and effective public procurement procedure to be carried out, may be better spelled out in the secondary legislation Guiding principle in designing PPA & PPR

14. CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop Session: M1-1 Slide No.14/24 Key features of PPA 2006 and PPR 2008  Gist of any secondary legislation is to flesh out the principles of law sketched out in the primary legislation  Feature of secondary legislation be more detailed  Primarily in order to provide contracting authorities with more specific indications of how public procurement procedures are carried out PPA 2006 PPA 2006 PPR 2008 PPR 2008 This broad approach explains why there is no predefined content for secondary legislation and, conversely, it may be difficult to identify the precise boundaries within which it should be expanded

15. CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop Session: M1-1 Slide No.15/24 Key features of PPA 2006 & PPR 2008 Various issues in the PPA mentioned only in passing, sketched out or not dealt with at all. Few of them are:  organization, competences & procedures of the CPTU  thresholds for procurement procedures  electronic procurement  details of Tender & Performance Security  documents required for meeting requirements of PEs  submission and opening of Tenders  contract award criteria  negotiations  review of complaints & appeals procedure PPA 2006 PPA 2006 PPR 2008 PPR 2008

16. CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop Session: M1-1 Slide No.16/24 Key features of PPA 2006 & PPR 2008  On various occasions the PPA directly requires obligatory adoption of rules/regulations  PPR 2008 prepared based on the PPA 2006, along with other relevant implementation documents, formats, models, guidelines, instructions PPA 2006 PPA 2006 PPR 2008 PPR 2008

17. CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop Session: M1-1 Slide No.17/24 Scope & application of PPA 2006  PPA extends to the whole of Bangladesh  Override other laws: Notwithstanding anything contained in any other law, the provisions of the PPA shall prevail Act [Section 3 & 4]

18. CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop Session: M1-1 Slide No.18/24 Scope & Application PPR shall apply to : a)Procurement by PEs using public funds b)Procurement by any government, semi-government or any statutory body established under any law c)Procurement using public funds by a company registered under the Companies Act, 1994 (Act No. 18 of 1994) d)Procurement under a loan, credit or grant agreement or under any other agreement with a development partner or with a foreign state or an organisation, provided that if there is anything to the contrary in any such agreement entered into, the provision of that agreement shall prevail Act [Section 3 & 4] & Rule - 3

19. CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop Session: M1-1 Slide No.19/24 Chapterwise Contents PPR,2008 Chapter 1 Preliminary Chapter 2 Preparation of Tender or Proposal, Committee Chapter 3 Principles of Public Procurement Chapter 4 Methods of Procurement for G & RS, W, PS Chapter 6 Processing of Procurement Chapter 5 Procurement of Intellect. & Profess. Services Chapter 7 Professional Misconduct Chapter 8 E-Government Procurement Chapter 9 Miscellaneous

20. CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop Session: M1-1 Slide No.20/24 Rule Schedules PPR,2008 Schedule I STDs Schedule II Times & Values Schedule III Proc. Processing, Approval Timet able Schedule IV Proc. Processing, Approval Proced ure Schedule V Procurement Plan Schedule VI Contract Award Reporting Format Schedule VII Notification of Award Schedule VIII Procurement Records Schedule IX Consultant Conflict of Interest Schedule X Invitation and Request Schedule XI Submission Forms Schedule XII Code of Ethics Schedule XIII PP Format

21. CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop Session: M1-1 Slide No.21/24 Provisions in Act e-Government Procurement Section 65 e-GP is likely to serve as a tool contributing effectively to deter inappropriate and threatening tendering practices in the country and will help fight corruption e-GP (1) For carrying out the purposes of this Act, any or all government procurement under this Act may be undertaken using electronic processing systems (2) The electronic processing system and the principles governing such system shall be prescribed by the Government

22. CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop Session: M1-1 Slide No.22/24 Contract E-Management Low Value, High Volume Procurement(E-PURCHASING) High Value, Low Volume Procurement(E-TENDERS) e-Procurement: Strategy Governments Business

23. CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop Session: M1-1 Slide No.23/24 Process simplification Quality Improving value for money Reducing procurement time Public Spending Optimization Communicating and publishing data on tender procedures and awarding criteria Innovation change management among public officials and suppliers through the use of EPROCUREMENT Transparency e-Procurement System: goals

24. CPTU-IMED (PPRP II) Three-Week Training on Procurement of Goods, Works & Services Fineurop Session: M1-1 Slide No.24/24 e-Procurement System