Govt decides to revise public procurement rules

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FHM Humayan Kabir
The government has decided to revise its loan procurement rules after different executing agencies said some of the existing provisions in the guidelines hamper implementation of development projects, officials said Monday.
"We've sought opinions from different government agencies on the existing rules. If they recommend for changing some provisions we will consider those," Abdul Malek, acting secretary of the Implementation Monitoring and Evaluation Division (IMED) told the FE.
We are hopeful of completing the revision work by June this year, he said.
As per the demand of different public bodies, the executive committee of the national economic council (ECNEC) had asked IMED to invite suggestions from agencies in a bid to revise the procurement rules, Mr Malek said.
"We've asked the government bodies to submit their recommendations by April 26," he said.
The government enacted the donor-advised Public Procurement Act (PPA) in July 2006 and framed Public Procurement Rules (PPR) in January 2008 to check corruption in government purchases and streamline implementation of the projects.
As per the law, the government project executing agencies must follow the guidelines for purchasing goods and services from any local or foreign parties.
A top official in the power and energy ministry said the complexity in the PPR delayed procurement, which hamper implementation of the annual development programme (ADP).
All the government agencies have spent only 34 per cent of the total Tk 256 billion ADP outlay during eight months (July-February) of the current financial year 2009, according to the IMED.
The official alleged though the country has a PPR, most of the time they were forced to follow the donors' guideline in procurement for the foreign funded projects.
"We need to take approval of the donors in every step of procurement. It creates unwarranted delay. Why should we follow the donors' guidelines despite having a set of rules of our own?" he said.
"According to PPA 2006 the agencies need not follow the donors' procurement rules. But bowing down to pressure from the donors, the government later in July 2007 incorporated a provision which has forced us to follow their dictates," he said.
Para-3/2/D of PPA 2006, incorporated later in July 2007, says that the implementing agencies would follow the procurement guidelines as per contracts of loans or grants with any bilateral or multilateral donors.
Another IMED official said most of the ministries and government agencies alleged that the time span of 14 to 28 days allowed in the PPR for tender submission creates the delay in the procurement of goods and services.
"They have demanded a shorter time than allowed in the existing PPR."
The official, however, said: "In true sense, most of the government agencies have very poor knowledge of PPA and PPR. It is mainly impeding development works."