Public Procurement Reform Initiatives in Nepal

Nepal has made significant strides in public procurement reform with the enactment of the Public Procurement Act and Regulation, establishment of the Procurement Review Committee, and the Public Procurement Monitoring Office. Key features include transparency, fair competition, and value for money, while functions include policy formulation, monitoring, and advisory services.

• Public Procurement
• Nepal
• Reform Initiatives
• Transparency
• Procurement Monitoring

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1. 2NDSOUTH ASIA REGIONAL PUBLIC PROCUREMENT CONFERENCE Islamabad, Pakistan, (March 25-27, 2014) COUNTRY PRESENTATION - NEPAL Naresh Kumar Chapagain , Joint Secretary Public Procurement Monitoring Office (PPMO) Kathmandu, Nepal

2. Outline of the Presentation Nepal at a Glance Background Country Procurement Reform Initatives Achievements in Public Procurement so far Current Initiatives Issues Challanges Way Forward Question Answer Session

3. Nepal at a Glance Type of Information Area Administrative Divisions Fact and Figure 147,181 sq. km. Five Development Regions, 14 Zones, 75 Districts, 58 Municipalities, 3915 VDCs Kathmandu 26.49 million Nepali and more than 120 regional and indigenous languages. $18.96 billion 3.01% $1347 USD 9.6%. US $3.55 billion Capital City Population (2011 A.D) Languages GDP (2012 A.D.) GDP Growth (2013 A.D) Per capita GNP (2012 A.D) Inflation (2012 A.D) Government Expenditure (F/Y 2012/13 A.D ) Revenue (2009/10E A.D) Literacy Rate (2001 A.D.) US$ 2.46 billion 54.1 (69 2009 estimate)

4. Background Provision of Government Procurement was under Financial Administration Regulations, 1999 A.D Country Procurement Assessment Report (CPAR) in April 2002 A.D Enactment of Public Procurement Act and Regulation in 2007 A.D. Establishment of Procurement Review Committee Establishment of Public Procurement Monitoring Office (PPMO) in August, 2007 A.D. under the Office of the Prime Minister and Council of Ministers (OPMCM).

5. Country Procurement Reform Initiatives Key Features: Enactment of Public Procurement Act and Regulation (PPA/PPR) 1. Transparency 2. Fair Competition Establishment of Procurement Review Committee (PRC) 3. Non Discrimination 4. Value for Money Establishment of Public Procurement Monitoring Office (PPMO) 5. Complaint Mechanism Based on UNCITRAL Model

6. Country Procurement Reform Initiatives Key Functions: Enactment of Public Procurement Act and Regulation (PPA/PPR) 1. Review of Procurement Proceeding Establishment of Procurement Review Committee (PRC) 2. Review of Procurement Decision Establishment of Public Procurement Monitoring Office (PPMO) Based on UNCITRAL Model

7. Country Procurement Reform Initiatives The main functions: 1. Public procurement policy formulations 2. Monitor the public procurement law implementation 3. Develop the indicators for the continuous monitoring 4. Advise on public procurement matters. 5. Establish and maintain websites dedicated to public procurement management 6. Develop and Issue SBDs 7. Issue manuals, directives, instructions & technical notes for facilitating the procurement proceeding 8. Coordination in public procurement 9. Develop human resource and professionalism for public procurement 10. Solicit the views of the business community as well as stake holders thoughts 11. Planning and coordinate foreign technical assistance in the field of public procurement Enactment of Public Procurement Act and Regulation (PPA/PPR) Establishment of Procurement Review Committee (PRC) Establishment of Public Procurement Monitoring Office (PPMO) Based on UNCITRAL Model

8. Achievements made so far in Public Procurement Amendment in Pubic Procurement Regulation Formulation of Procurement Review Committee (PRC) Development of SBDs e-GP system development & implementation PHASE I Development of Monitoring Checklist Procurement Unit in each Spending Offices Develop Baseline Indicator using OECD DAC Nepal Public Procurement Strategic Framework (NPPSF) o NPPSF I- 2010-2013 o NPPSF II- 2013-2016

9. Current Initiatives Full Fledged Centralized e-GP Implementation o e-Evaluation and Contract Award o e-Contract Management o e-Payment o Public Procurement Management Information (PPMIS) NPPSF II (2013-16) o Standardization of Process o Capacity Development o Institutional Development Framework Agreement Accreditation Revision and Translation of SBDs

10. Pipeline Activities Development of Operational Guidelines: o Document Preparation o Evaluation o Contract Management Development of Guidelines and SBDs: o Design Build /Engineering Procurement and Construction (EPC) o Framework Agreement Procurement Monitoring Manual Technical Notes Catalogue/ Online Shopping

11. Capacity Development Issues Expert Level o Establishing Expert Pool & Engagement Public Entities (PEs) Level o General Procurement Capacity o Sectoral / Specific Capacity o e-GP Training Private Sectors o Awareness and e-GP Training Oversight Agencies o Interactions / Workshops

12. Challenges e-GP implementation: o Sustainability , Reliability , Security o Access of internet service, o Technical support Resource Mobilization: o Human Resources (Retention, Career Development, Professionalism) o Fund Mobilization o Coordination Awareness Campaign : o Civil Society, Mass Media, Private Sector, Oversight Agencies

13. Way Forward Internal Diagnostic Mechanism o Procurement Clinic o Case studies o Best practices o Performance Monitoring activities DPs Consultation / Advise Expert Prescription and Surgery Regional/International Forum: o Knowledge/ experience sharing (SARPFF) Social Networking /Video conference o LinkedIn, Discussion Board

14. Public Sector Thank You