South Asia Regional Public Procurement Forum

Islamabad, Pakistan,
(March 25-27, 2014)

Country Paper Presentation

Naresh Kumar Chapagain , Joint Secretary,

Public Procurement Monitoring Office (PPMO)
Kathmandu, Nepal
 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
 Nepal at a Glance

Type of Information Fact and Figure

Area 147,181 sq. km.
Administrative Divisions Five Development Regions, 14 Zones, 75 Districts, 58
Municipalities, 3915 VDCs
Capital City Kathmandu
Population (2011 A.D) 26.49 million
Languages Nepali and more than 100 regional and indigenous
languages.
GDP (2012 A.D.) $18.96 billion
GDP Growth (2012 A.D) 4.9%
Per capita GNP (2012 A.D) $742
Inflation (2012 A.D) 9.5%.
Government Expenditure NRs 259.146.1 billion (US $3.55 billion)
(F/Y 2013/14 A.D )
Revenue (2009/10E A.D) NRs. 179.9 billion (US$ 2.46 billion)
Govt. spending % of GDP 22%
Govt. Procurement % of 11 percent
GDP
Literacy Rate (2001 A.D.) 54.1 (69 – 2009 estimate)
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 ReviewCommittee

• Establishment of Public Procurement Monitoring Office (PPMO) in August, 2007

A.D. under the Office of the Prime Minister and Council of Ministers (OPMCM).
Country Procurement Reform Initiatives

Enactment of Public Procurement Act and Key Features:

Regulation (PPA/PPR) 1. Transparency
Establishment of Procurement Review 2. Fair Competition
Committee (PRC)
3. Non Discrimination
Establishment of Public Procurement 4. Value for Money
Monitoring Office (PPMO)
5. Complaint Mechanism

Based on UNCITRAL Model

Country Procurement Reform Initiatives

Key Functions:
Enactment of Public Procurement Act and
Regulation (PPA/PPR) 1. Review of Procurement Proceeding

Establishment of Procurement Review 2. Review of Procurement Decision

Committee (PRC)

Establishment of Public Procurement

Monitoring Office (PPMO)

Based on UNCITRAL Model

Country Procurement Reform Initiatives

Enactment of Public Procurement Act and The main functions of the PPMO:
Regulation (PPA/PPR) 1. Public procurement policy formulations

Establishment of Procurement Review 2. Monitor the public procurement law

Committee (PRC) implementation
3. Develop the indicators for the continuous
Establishment of Public Procurement monitoring
Monitoring Office (PPMO)
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.
Based on UNCITRAL Model
 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
•Monitoring Checklist
•Procurement Unit in each Spending Offices
•Country Procurement System Assessment using OECD DAC, BLI,
•Nepal Public Procurement Strategic Framework (NPPSF)
o NPPSF I- 2010-2013
o NPPSF II- 2013-2016
Current Initiatives

•Full Fledged Centralized e-GP Implementation

• e-Evaluation and Contract Award
• e-Contract Management
• e-Payment
• 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
Pipeline Activities

•Development of Operational Guidelines for :

o Document Preparation
o Evaluation
o Contract Management

•Development of Guidelines and SBDs for :

o Design Build /Engineering Procurement and Construction (EPC)
o Framework Agreement
•Procurement Monitoring Manual
•Technical Notes
•Catalogue/ Online Shopping
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

•PPMO
o Policy formulation, Tools ?

•Oversight Agencies
o Interactions / Workshops
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
Way Forward

•Expert Surgery/ Capsule

•DPs Consultation / Advise
•Internal Diagnostic Mechanism
o Procurement Clinic
o Case studies
o Best practices
o Performance Monitoring activities

•Regional/ International Forum for:

o Knowledge/ experience sharing
•Social networking /Video conference
Public Sector

Thank You