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Procurement Reform

Program

Cambodia

By Pen Thirong (DIC) and Huot Vathana(DPP)

Ministry of Economy and Finance

Hanoi, Vietnam

Nov. 30 Dec. 01, 2010

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Public Procurement System in Cambodia

No Public Procurement Law Governed by two Sub-Decrees setting outprinciples, responsibility, accountability and

implementing rules and regulations: For externally assisted projects: Procurement Manualand Standard Operating Procedures were issued inFebruary 2007

For domestically financed projects: Sub-Decree onNational Public Procurement as well as ImplementingRules and Regulations were issued in 2006 & 2010

These have led to different institutionalarrangements

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Major Issues for DPs Funded Projects

Long Delays in Procurement Process Inconsistencies in procedures among DPs, EAs

Delays in DP Response Time

Delays in Start Up Activities like completion of

detailed designs, recruitment of project managementconsultants, although advance action allowed

Lack of Competition Domestic capacity of contractors, manufacturers

Lack of responsiveness due to lack of understandingof bidding requirements

Collusive practices by bidders

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Major Issues for DPs Funded Projects

Insufficient capacity Lack of procurement expertise in EAs/IAs

Lack of national procurement professionals

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E Procurement

No E Procurement in Public ProcurementSystem in Cambodia. This is one of outputstargeted by the Department of Public

Procurement (DPP) under PFM ReformProgram. However, implementation of actionplan may be delayed

Public Procurement and Private Sector Capacityin procurement is not sufficiently developed tointroduce E Procurement at this stage

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Professionalism and Training

Cambodia suffers from lack of human resourcesskills in procurement both at the public andprivate sector levels

No Learning Institution in the country offeringstructured skills training and education inprocurement area/field

Training mostly provided in the Public Sectorthrough ah hoc and short term training

Currently, MEF facilitates or provides trainingprogram to EAs and LMs

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Planned Capacity Building (Now-2013)

MEF has prepared a Capacity Building Programwith Two Phase Approach

Phase I (by DIC)

Structured Short to Medium Terms Training of EAsOfficers by international experts/DIC staff

Interim Certification of Procurement Professionalsbe provided

Use EFI as a National Learning Institution Training of Trainers

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Planned Capacity Building (Now-2013)

Phase II (long-term: by DPP) Development of single public procurement

implementing rules and regulations

Establishment of a National Learning Institution

Professional Certification Program for Membershipto International Institutes for ProcurementProfessionals including Twining Arrangement withinternational procurement training institute

Provision of training program in country wide toprocurement officers of both national and sub-national levels

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Current Legal Framework & Reform

Article 70 of Public Financial System Lawempowers MEF with function of publicprocurement management

Recently adopted Anti-Corruption Law

Civil Servant Code RGC is carrying out Public Procurement

Reform under the PFM Reform Program DPP is preparing the reform framework

including Draft Public Procurement Law DPP in MEF is responsible for policy

development and regulatory functions, includingauditing role

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Current Legal Framework & Reform

Current Legal Framework (2 Sub-Decrees) Sub-Decree on public procurement for use with

externally financed projects (PM) Sub-Decree and implementing rules and regulations

on procurement under domestically funded projects For externally funded projects, Complaint

Handling Mechanism and Sanction Policy Follow international best practices (ADB&WB) Anti-Corruption Law adopted by legislative bodies

and Anti-Corruption Institution established

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Current Legal Framework & Reform

Civil Servant Code SOP/PM/FMM for use with externally financed

projects are being reviewed and updated. Procedureson complaint handling mechanism and sanctionpolicy be further reviewed and updated consistentlywith Anti-Corruption Law and its action plan

Law on Public Procurement is being drafted byDPP in consultation with all stakeholders

Website on PP is being designed

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Important Initiatives

Comprehensive Capacity Building in

Procurement in Rural Development Ministries isimportant to help delivery of public services tobenefit the rural citizen

Review and update of SOP and PM (to be completedby June 2011)

Mandatory Use of Procurement Tracking Formfor monitoring of procurement

Bench Marking- maximum time allowed for eachactivity under procurement cycle mandated underthe PM

Exit from IPA arrangement (for WB funded projects)

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Important Initiatives

Country wide training program for RGCs civil

servants (PFM Reform Program) inprocurement area

Establishment of the National LearningInstitution for PP professionalism and conducttraining activities

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Thank You!