PUBLIC PROCUREMENT AND

SERVICE DELIVERY

(5TH SOUTH ASIAN REGIONAL PUBLIC PROCUREMENT

CONFERENCE)

By

Nargis Ghaloo

Managing Director

Public procurement Regulatory Authority

Pakistan

FEDERAL PUBLIC PROCUREMENT REGULATORY

AUTHORITY

Public Procurement Regulatory Authority (PPRA) is an

autonomous body endowed with the responsibility of

prescribing regulations and procedures for public

procurements of goods, services and works by Federal

Government owned public sector organizations

2

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 method of

procurement

All procurements above the minimum threshold of Rs. 100000

(about US$1000) are advertised.

3

To improve governance, transparency, accountability and

quality of public procurement.

To supervise the application & implementation of relevant

laws, rules, policies and procedures.

To recommend revision/formulation of laws, rules and

policies related to public procurement.

To formulate regulations on public procurement.

To monitor performance of procuring agencies for

improvements in their institutional set up.

To coordinate and assist procurement agencies in improving

their institutional framework

To call for any information

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PPRA Functions/Powers

PREVIOUS PROCUREMENT REGIME

General Financial Rules

Purchase Manual

Delegation of powers to Ministries

Autonomous Bodies Rules for procurement

Circulars of Ministry of Finance

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PUBLIC PROCUREMENT LEGAL FRAMEWORK OF

PAKISTAN

PPRA Ordinance 2002

Public Procurement Rules 2004

Regulations

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Federal Public Procurement Regulatory Authority

(Established in 2004)

Sindh Public Procurement Regulatory Authority

(Established in 2009).

Punjab Public Procurement Regulatory Authority

(Established in 2009)

KPK Public Procurement Regulatory Authority (Established

in 2014)

Baluchistan Public Procurement Regulatory Authority

(Established in 2010)

8

Public procurement suffered from inefficiencies and

poor management

Lack of professional expertise effective

procurement regime

Capacity issues of PPRA

Gaps in legal framework

Lack common vision of procurement processes at

the National and sub National Levels

Lack of effective data and management Information

system

NEED FOR PROCUREMENT REFORMS

ADVISORY GROUP ON PUBLIC PROCUREMENT (AGPP)

Advisory Group on Public Procurement was inaugurated in April, 2013.

Members

Federal and Provisional PPRAs

Donors (World Bank, USAID, ADB)

Leading Procuring Agencies

Reform Agendas

Preparation of National Procurement Strategy 2013-16

Revision and improvement of Public Procurement Rules, 2004

Implementation of Training and e-Procurement Strategies in

collaboration with World Bank

National Procurement Strategy 2013-2016 has been

developed to outline a common vision and outlook on

making procurement process efficient and transparent in the

country. The Strategy endeavors to lay down a roadmap for

the Federal and Provincial Regulators which can help them

realize the objectives and principles of public Procurement

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National Procurement Strategy

Reform Agenda

Harmonization of the legal framework

Amendment & revision of laws

Development of standard bidding documents

Strengthening of procurement planning and its integration with

budgetary operations

Introducing e- procurement

Improving governance and institutional capacity of PPRA and

procuring agencies

Strengthening of monitoring and oversight capacity of

procurement regulatory authorities

Capacity building of procuring entities and suppliers

Revision of laws/rules

Exercise to revise legal framework commenced in June 2004 with

consultation with stakeholders

Ministries & Divisions

Federal Departments

Provincial Governments

Provincial PPRAs

WB, ADB, USAID, TIP

Chambers of Commerce

Contractors Association

General public through PPRA’s website

er

Amendments in Law

Law extended to disposal of assets

Maintain website and upload procurement activities as

prescribed by the regulations

Five members including one private member will constitute

quorum

Use of electronic system is allowed

Annual procurement plans integrated with budgetary

allocation

Post procurement review

Technical Evaluation report to be uploaded on PPRA website

Unsolicited proposals

Frame work agreement

Amendment in Rules

contd----

PPRA to formulate training policies on public procurement

launch training programmes for Procuring Agencies and the

suppliers.

Use of electronic system’ is added to allow e-procurement

Concept of ‘Lots’ is introduced to divide one procurement

into lots

Rule of ‘Assignment’ is introduced to allow one procuring

agency to assign procurement process or a project to another

government department

CONTD/…

A Post Contract Report on PPRA website including data of

direct contracting and negotiated tendering

The contact detail of Grievances Committees constituted by

the procuring agencies to be PPRA website

Contract to be awarded after settlement of complaints.

Negotiations allowed in specific cases

Shortlisting of minimum three bidders

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E-procurement

Setting up e-portal

Strengthening monitoring and oversight capacity of PPRA through

M&E system

Setting up electronic database for past contracts, performance of

contractors, prices

Establish electronic M&E system in large procuring authorities

Capacity Building

Develop training strategy

Partnering with higher education institutions to develop training

modules

E-learning through online training

Capacity building of procurement personal

Mandatory certification for procurement officers

Service entry level procurement trainings

Training of suppliers

Future Road Map

Training and e-Procurement Strategies have been developed in

consultation with the PPRAs and the World Bank Country

Office in Pakistan.

World Bank’s public financial management and accountability

to support service delivery program (program for results)

Improved legal framework

Capacity building

E-procurement

Implementation is the key

PPRA Ordinance 2002

Public Procurement Rules, 2004

National Procurement Strategy

Training Need Analysis (TNA) and Training Strategy

e-Procurement Strategy

PPRA web portal (www.ppra.org.pk )

REFERENCES

THANK YOU

179802 TENDERS MONITORED/UPLOADED ON PPRA WEBSITE

DURING THE FINANCIAL YEARS 2012-2017

Financial

Year Organizations Tender Uploaded

Average Daily

Tenders

Violations

Indicated

% PP Rules

Violations

% PP Rules

Compliance

01-07-2012

to

30-06-2013

677 26122 71.57 5721 21.90 8.00

01-07-2013

to

30-06-2014

742 28046 76.84 4458 15.90 8.50

01-07-2014

to

30-06-2015

755 31844 87.24 4304 13.52 10.30

01-07-2015

to

30-06-2016

761 38230 104.74 4054 10.60 12.60

01-07-2016

to

30-06-2017

771 37146 101.77 2745 7.39 35.90

01-07-2017

to

31-12-2017

776 18414 100.62 1021 5.54 25.66

Total 4482 179802 39.69 22303 12.40 30.96