ISLAMIC REPUBLIC OF AFGHANISTAN MINISTRY OF FINANCE PROCUREMENT POLICY DIRECTORATE

1
?????? ?????? ?????????
?????????? ?????? ???????

• ISLAMIC REPUBLIC OF AFGHANISTANMINISTRY OF
  FINANCEPROCUREMENT POLICY DIRECTORATE

2
AFGHANISTAN

• AFGHANISTAN
• Landlocked and mountainous
• South Asia
• Heart of Asia
• Connecting South East Asia with Central
  Western Asia

3
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

4
PUBLIC PROCUREMENT REFORM

• 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 and institutional framework where
  all the public procuring entities have fully
  developed capacities to perform their full
  procurement function.

5
PUBLIC PROCUREMENT REFORM

• 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

6
PUBLIC PROCUREMENT REFORM

• 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

7
CAPACITY BUILDING
8

• 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

9
PUBLIC PROCUREMENT REFORM

• 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

10
PUBLIC PROCUREMENT REFORM

• 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

11
PUBLIC PROCUREMENT REFORM

• 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.

12
PUBLIC PROCUREMENT REFORM

• PMIS Cont.
• PMIS Modules for Line Ministries To provide
  electronic services for Procurement Entities
• including
• 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

13
DATA FROM PMIS
14
PERFORMANCE DATA FROM PMIS
15
PERFORMANCE DATA FROM PMIS
16
PERFORMANCE DATA FROM PMIS
17
PERFORMANCE DATA FROM PMIS
18
PERFORMANCE DATA FROM PMIS
19
PERFORMANCE DATA FROM PMIS
20
PERFORMANCE DATA FROM PMIS
21
PUBLIC PROCUREMENT REFORM

• 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

22
PUBLIC PROCUREMENT REFORM

• Contract Management Office (CMO)
• Established as per PPL
• Provides secretariat support to SPC in reviewing
  the documents

23
APPEAL AND REVIEW MECHANISM

• Administrative Review Committee
• Established as per PPL
• Review bidders complains
• Take Decisions
• Members
• Public and Private Sector

24
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.

25
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

26
FUTURE PLAN

• Capacity Building
• Strengthen/revise Training Curriculum for Basic
  and Intermediate
• Prepare Advance Standard Training Curriculum
• Develop Professionalized Procurement Module as
  Diploma courses

27
FUTURE PLAN

• Institutional Development
• All Ministries, independent Directorates and
  Provinces.

28
FUTURE PLAN

• PMIS
• e-Bid Submission
• e-Contract Management
• e-Purchasing
• Reverse Auction
• E-Learning

29
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

30
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 Governors 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