session 7 nepal final 241111

8/3/2019 Session 7 Nepal Final 241111

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Electronic Procurement in Nepal

Avanindra Kumar ShresthaTej Raj Pandey

Public Procurement Monitoring Office (PPMO)

NEPAL


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1. Country Background

Area: 147,181 sq. km.

Population (2011 Census) 26.6 million

Religions (2001) Hinduism (81%),Buddhism (11%),Islam (4%), and

others (4%).Per capita GNP (FY 2009) $427 (World Bank)

Govt. Expenditure (2010/11) US $3.85 billion

Revenue (2010/11) US$ 2.87 billion

Govt. spending % of GDP 22.5%

Government procurement 55 % of Government Spending

Govt. Procurement % of GDP 11.4 per cent


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2. Public Procurement Reform Initiatives in Nepal

Reforms in public procurement initiated based on recommendation made

by WB's Country Procurement Assessment Reports (CPAR), 2002. Public Procurement Act (PPA) and Public Procurement Regulation (PPR)

enacted in 2007.

The scope of the public procurement law:

Covers all procurement handled by public entities excluding securityprocurement.

Establishes a fully decentralized system for procurement decision

making.

Standardizes procurement practices (use of common procedures and

standard bidding documents and forms). Provides for an administrative review mechanism for complaint that

allows bidder to challenge procuring entitys decision before filing for

judicial review (Review Committee).

Allows framework contracts.


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3. Public Procurement Reform Initiatives in Nepal... ...

PPMO established in 2007 as a central Public Procurement Authority to act

as functional and normative body as per the provision made in the PPA.

PPMO is under Office of Prime Minister and Council of Ministers. PPMO's mandates are:

Formulation of procurement policy and regulations

Issue SBDs, technical guidelines and required manual;

Monitor and conduct procurement audit and assess countryprocurement system;

Provide advice and opinion to PEs on any matter set forth in the law or

guidelines;

Develop and operate e-GP single portal;

Organize regular training programs; Prepare annual report on procurement proceedings and submit to the

Government (Prime Minister).


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4. Public Procurement Reform Initiatives in Nepal... ...

PPA includes provision for the use/adoption of e-

procurement. Amendment of PPR in 22 July 2011 to strengthen PPMO

leadership for the establishment of e-GP.

PPMO mandated to establish, operate and manage single

portal e-GP system. All Public entities have to carry out procurement

proceedings by using single portal e-GP system as per PPMO

Directives

World Bank and ADB providing support for institutionaldevelopment to PPMO.

Currently, PPMO is implementing a project to develop e-GP

system with the support of WB and ADB (from 2010/11).


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5. Development and Implementation of e-GP

To address problems of collusion and tender rigging, Department

of Road (DOR) initiated e-submission in June 2007

Is this place to submit bid. We are here with all formalities (?).


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6. Development and Implementation of e-GP

Budget speech (2010 &11) made e-GP mandatory for theprocurement above NRs. 20 million from 17 April2011(Approximately USD 285,600).

In absence of e-GP central portal, following DOR system, 14 other e-bidding portals developed and used by 114 public entities.

To stop growth of multiple e-bidding portals, PPMO launched

transitional central portal (www.gepson.gov.np) on 17 Sept 2011. PPMO provided e-GP Operation Guidelines and Directives, e-SBD

(works) and training for the use of e-GP.

Within two months 94 PEs registered , 23 tenders processed in thePPMO portal and 28 bidders registered.

At present, all 16 e-GP portals are in use. By 15 November 2011, 289PEs have adopted e-submission and 3076 e-tenders have beenpublished (about 60 per cent growth compared to 2010)

There are 2365 bidders registered in DOR system.

Status of e-GP use in Nepal is given in table 1 (up to 15 November2011)
http://www.gepson.gov.np/http://www.gepson.gov.np/http://www.gepson.gov.np/


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7 Table 1:Public Entities using e-submission websites in Nepal

PEs' e-procurement

websites

Active

Buyer

Start Date Published e-tenders

2010 2011(Up to 15 Nov )

.eproc.dor.gov.np 81 June, 2007 1910 2412

.e-nea.org.np/tenders.php 1 June, 2010 81 184

.doi.gov.np 25 Nov, 2010 9 45

.edolidar.gov.np 38 July, 2010 133 59

.edudbc.gov.np 39 Jan, 2011 - 334

.eproc.nepalarmy.mil.np 2 Sept, 2011 - 2

Other 9 individual portals 1x9 2009 to 2011 4 19

.gepson.gov.np 94 Sept, 2011 - 21

Total (16 e-GP portals) 289 2137 3076
http://www.eproc.dor.gov.np/http://e-nea.org.np/tenders.phphttp://www.doi.gov.np/http://www.edolidar.gov.np/policy.phphttp://www.edudbc.gov.np/http://eproc.nepalarmy.mil.np/http://www.gepson.gov.np/http://www.gepson.gov.np/http://www.gepson.gov.np/http://eproc.nepalarmy.mil.np/http://eproc.nepalarmy.mil.np/http://www.edudbc.gov.np/http://www.edudbc.gov.np/http://www.edolidar.gov.np/policy.phphttp://www.edolidar.gov.np/policy.phphttp://www.doi.gov.np/http://www.doi.gov.np/http://e-nea.org.np/tenders.phphttp://e-nea.org.np/tenders.phphttp://e-nea.org.np/tenders.phphttp://e-nea.org.np/tenders.phphttp://www.eproc.dor.gov.np/http://www.eproc.dor.gov.np/


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8 Interim Central Portal of e-GP: www.gepson.gov.np
http://www.gepson.gov.np/http://www.gepson.gov.np/


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Facilities in the system (www.gepson.gov.np)

Buyer Facility Bidders Facility Administrator Facility

Publish Tender Notice

Publish Bid

Documents Tender Amendment

Response to Tenders

Download bids

Upload information

about award

online Registration

Acquire information

about bids Download bid documents

Participate by uploadingbids

Amend / Withdraw bids

Managing theoverall E- biddingsite,

Creating a Buyer,

Block the non

relevant Bidder, ifnecessary
http://www.gepson.gov.np/http://www.gepson.gov.np/http://www.gepson.gov.np/http://www.gepson.gov.np/


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Prevailing Security Feature Data Base encrypted

Access with own users name and password

Users password encrypted form

Server data access control

Accessible through PPMO IP address only

Three level password security

Access authorization controlled

Automatic Log maintained
http://www.gepson.gov.np/http://www.gepson.gov.np/


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11 e-GP Planning

For e-GP development in Nepal:

WB consultant prepared report "Nepal e-GP Readiness Assessment and

Roadmap" in October 30, 2007.

ADB consultant prepared report on "Towards Instituting an e-GP system

in Nepal" in September 10, 2009.

PPMO prepared Nepal Public Procurement Strategic Framework -2010/

013 (NPPSF-I) and Strategic Policy Document for the implementation of

e-GP approved by Prime Minister on June 2010 .

The plan has focused reforming country procurement system including

development of e-GP system .

A High level Coordination Committee chaired by Chief Secretary has

been formed on July 2010 involving secretaries of major ministries.

PPMO in support of WB and ADB procured consultant services to review

existing e-GP software and develop e-GP software Phase-I which will be

completed by March 2012.

Strategic Policy Document for the Implementation of e-GP has mentioned

conceptual framework and action areas for developing e-GP


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12 Action plan for developing e-GP:

Schedules & Achievements (based on NPPSF-1)

Fiscal Year July 16 2010/ July 15, 2011

Planned Activities Achievements

Establish High Level NPPSF Coordination Committee; 100 %

Policy Decision by Government of Nepal to implement

e-GP;

July 2010

Institute a Core Task Force in PPMO and providepolicy guide for e-GP Development;

August 2010

Review existing e-procurement system in the countryand define e-GP requirements and develop terms of

reference (TOR) to design and develop e-GP

August 2011

Hire consulting firm to design, develop and launch e-GP single portal (Phase -I)

Nov. 2011

Set up e-GP section/Division in PPMO Not achieved yet


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13 Action plan for developing e-GP:Schedules & Achievements (based on NPPSF-1)


Planned Activities Schedule /Achievements

Develop interim single portal to manage transition September 2011

Develop e-GP Operation Guidelines and manuals; September 2011Familiarize e-GP to bidders and buyers Continuous

Organize training for bidders an buyers Continuous

Carry out system Audit and testing of e-GP software

phase I

December 2011

Launch and operate e-GP software phase I January 2012

Conduct study and define requirement to establishPPMIS

July 2012

Hire consulting firm to develop e-GP phase-II July 2012


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14 Action plan for developing e-GP:Schedules & Achievements (based on NPPSF-1)


Planned Activities Schedules

Collect and analyze Baseline data for monitoring framework Sept 2012

Develop NPPSF-II for 2013-2015 Feb 2013Organize training for bidders an buyers Cont.

Procure necessary equipment for e-GP and PPMIS June 2013

Carry out system Audit and testing of e-GP software phase II July2013

Launch and operate e-GP software phase II July 2013Establish PPMIS with linkage with e-GP July 2013

Develop e-GP guidelines and manuals to operate E-GPSoftware (Phase-II)

July 2013


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15 e-GP: Architecture

e-GP Phase-I is designed to include :

bidder and buyer registration,

central database system of bidders,

central bid notice publication,

e-submission for the procurement of goods, works and

consulting services

e-GP Phase-II is designed to include:

Bid-evaluation, contract award, contract administration,

payment, and archiving,

e-catalogue,


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16 Major Issues and Challenges

e-GP is at basic stage it is only involved in e-submission

Weak technological infrastructure to implement e-GP

Digital signature system not in place

Capacity gaps in PPMO and in the procurement units of line

ministries as well as in suppliers

Weak Institutions to manage e-GP

Weak organizational set up

Weak training capacity

Legal framework not harmonized to support e-GP


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17 Identify areas that need MDBs assistance

PPMO proposals to ADB is in the process of approval which

include following components:

1. Human Resource Development (develop human resources to

establish e-GP system and PPMIS)

2. Planning, Programming, and Budgeting (develop NPPSF-II and

create baseline data for Monitoring Framework).

3. Public Procurement Management Information System

(establish PPMIS and linakage with IFMIS).

4. Component 4: e-Government Procurement (Develop e-GP

phase II and operate full e-GP module).


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Thanks