Transforming Public Procurement in Nepal with e-GP: Challenges and Solutions

The utilization of Electronic Government Procurement (e-GP) in Nepal has been crucial in modernizing the public procurement process. This advancement has allocated a significant portion of the national budget for various sectors, aiming for transparency, efficiency, competition, and value for money. Despite the positive impact, there are challenges such as quality deterioration, time/cost overruns, and inadequate monitoring hindering the full realization of procurement principles. To address these issues, reform initiatives have been implemented like the enactment of the Public Procurement Act, establishment of PPMO and PPRC, and the development of e-GP systems. Legal provisions and the inclusion of diverse stakeholders in the process are vital in streamlining public procurement practices in Nepal.

• Public Procurement
• e-GP
• Nepal
• Challenges
• Solutions

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1. Electronic Government Procurement (e-GP) in Nepal Manish Bhattarai

2. Importance of Public Procurement in Nepal Around 60 % of the annual national budget has been allocated for public procurement, out of which: Other Services 5% Consulting 15% Civil Works 50% Goods 30%

3. Issues of Public Procurement in Nepal Principles of Public Procurement: Efficiency 1 Transparency 2 Competition 3 Value for Money 4 Issues Hindering to Achieve Principles: Quality deterioration 1 Time and cost overrun 2 Inadequate capital expenditure 3 Poor monitoring of procurement and contract management 4

4. Streamlining of Public Procurement in Nepal Reform Initiative taken care to minimize the procurement issues: Enactment of Public Procurement Act, 2007 Public Procurement Regulation 2007 Amendment in PPA and PPR based on uses and international practices Establishment of PPMO and Public Procurement Review Committee (PPRC) Government Policy to use e-GP system Development and implementation of e-GP systems (Phase I & Phase II)

5. Legal Provisions for Electronic Procurement Public Procurement Act- Clause 69 Public Procurement Regulation- Rule 146

6. Legal Provisions for Electronic Procurement ( ) . . , ( ) , - - - -

7. National e-GP Modules Public Entity s Module Bidder s Module Banker s Module Interactive Modules Public Entity's Module Oversight Module PPMIS User s Modules

8. Stakeholders of National e-GP System Publish Procurement Opportunities, Evaluate & Execute Contract ` Bidding Community View Opportunities and Participate in Bidding Procedure Public Entity Bank National e-GP System General Public Citizen Monitoring Issue & Verify Instruments Oversight Agencies Keep on Monitoring

9. Functional Coverage of National e-GP System Public Entity & User Registration Procurement Plan Management Contract Management Banking Interface for Securities/ Guarantee Verification Common Procurement Vocabulary Public Procurement Management Information System (PPMIS) Preparation, & invitation of Bid Contract Awarding Complaint Management Integration with Other Systems (Tax Regist- ration System, Central Bank) Notification Bid Response Preparation & Submission Bid Evaluation Bid Opening

10. Public Procurement Management Information System (PPMIS) Planning Bid Document Preparation Contract Management Public Procurement Management Information System (PPMIS) Bid- Contract Awarding Submission Bid Bid Opening Evaluation

11. Benefits of National e-GP System Minimized collusion and intimidation and increased competition and transparency Reduced turn around time of procurement cycle & improved process efficiency Easy access of national and international bidders in procurement Consolidated database of Contractors/Suppliers/ Consultants profile helps in future to monitor bid capacity Procurement information (PPMIS) easy monitoring & analysis and effective decision making Improved regulatory compliance

12. Thank You