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Friday, August 16, 2013

Procurement Reform Bangledesh, Round II

Bangladesh: Transforming Procurement Outcomes Through Capacity Development and Performance Monitoring
The capacity development program is now recognized as an emerging model because of its unique features. These include developing a critical mass of about 35 national trainers; establishing a procurement faculty at a local institute; implementing procurement training for about 20 different audiences, such as policy makers, procurement practitioners, bidding community and auditors; providing three-week training to about 2100 staff of the four agencies in a way so that each procuring entity within those organization has at least one trained staff; and introducing a built-in incentive mechanism for the top-performers (international procurement accreditation by the Chartered Institute of Purchasing and Supply, UK and Masters programme in procurement).

Despite a challenging context, Bangladesh has been transforming its procurement environment for better outcomes in public contracting with improved efficiency, effectiveness, and transparency at key sectoral ministries and agencies. This has been demonstrated by: reduced procurement delays; improved competitiveness; and enhanced transparency. About 65% of small value large number of contracts at decentralized level are now awarded within initial bid validity period, the average number of bidders has increased to six, and around 60% of the contract awards are published in the website.

Results:

• Improved efficiency and effectiveness of procurement with reduced procurement delays: About 65% small value contracts at decentralized levels have been awarded within the initial bid validity period in 2012, up from only 10% in 2007.
• Enhanced transparency: About 60% contracts awards in 2012 were published at the Central Procurement Technical Unit (CPTU) website, up from only 15% in 2007. Invitation for bids published in newspaper has increased to almost 100% in 2012 from 70% in 2005. In addition, complaints handling mechanism using the independent review panel’s approach and administrative reviews has contributed significantly in improving the accountability of public sector organizations. This has brought about better confidence of the bidding community in the public procurement system. Furthermore, all policy related documents are available on the website of CPTU including laws, rules, bidding documents, guidance notes.
• Increased competitiveness: The reform has resulted in more competition among bidders as demonstrated by increased number of bidders; average number of bidders at the key sectoral agencies increased to six in 2012 from four in 2007.
• Improved capacity development: Developed a core group of about 35 national trainers; provided three-week procurement training to over 2900 officials; about 35 staff received international procurement accreditation in core competence from the Chartered Institute of Purchasing and Supply (CIPS/UK), MCIPS, and all of them are also completing Masters in Procurement and Supply Management from a leading local university (BRACU- Institute of Governance).
• Increased electronic tendering: Four key agencies, after completing the pilot phase, has rolled out the e-GP across all of their procuring entities, and as of December 2012 covered at least one e-GP tender in 50% of the procuring entities of each agency.
• Increased stakeholder participation: Public-private stakeholders committee (PPSC) made fully functional; government-contractors forum established; communication workshops held in all districts.

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