Electronic PROCUREMENT IN MONGOLIA Gantsogt Khurelbaatar Ministry of Finance

E-PROCUREMENT IN MONGOLIA 1.Public Procurement system of Mongolia 2.Digitalization of Procurement activities- -PMMIS 3.E-Procurement proposal

Public Procurement history of Mongolia May 2000 – Public Procurement Law enacted

Public Procurement history of Mongolia (Half centralized) ▫Government procurement was highly centralized. Major procurements are done at Ministry of Finance level Present (Decentralized) ▫Government procurement is decentralized. Most high value procurements are done at line ministry level. Ministry of Finance gives no objection to procurements above certain threshold

Bid notices and results Databases of procurement related laws, procedures and regulations

Current problems Short window for procurement process (December to April) Delays in procurement process is one of the biggest problem (PLANNING???) Bid award and other information is not available

Procurement Management, Monitoring and Information System Web based software is developed Planning to start using by January 1, 2010

PMMIS Procurement plan databases for ministries, agencies and local governments; Input records of procurement implementation Monitoring and analyzing of procurement performance of procuring entities based on its procurement plans and its implementation Record entities submitted expressions of interest for bidding;

PMMIS The following information will be posted online General Procurement Plan Bid notice Bid award and results

PMMIS Budget system Treasury system PMMIS

Feasibility study on introducing e-procurement July –October, 2007Feasibility study on introducing e-procurement to Mongolia is conducted by Korean Government November, 2007 Final report of feasibility study is presented to Mongolian Government. November, 2007 Request for financing Phase 1 of introducing e-procurement to Mongolia submitted to KOICA (in total around 10 million USD required)

Phase 1 Phase 2Phase 3 Foundation establishment AdvancementStabilization E-PROCUREMENT

Phase 1  Enactment & amendment of laws & guidelines for procurement & e-procurement  Establish e-Shopping Mall system (Pilot)  Establish e-Tendering system (Pilot)  Establish documents distribution and outside linkage 3.8 million USD

E-PROCUREMENT  Expand Portal system  Expand e-Tendering system  Expand documents distribution and outside linkage  Establish e-Contract system  Establish goods classification system  Establish supplier’s performance system Phase millions USD

E-PROCUREMENT  Establish e-Guarantee system  Establish e-Payment system  CRM/DW  RFID  Reinforce on-line education on e-procurement Phase million USD

E-procurement Challenges on introducing e-procurement in Mongolia Cost issue (10 million USD) too high??? Legal environment needs to be established (e-commerce, e-payment, security laws etc.,) IT Infrastructure needs to be modernized Linkages between other Government agencies have to be installed Capacity of Government to handle ICT projects have to be improved Political support and Government willingness required to fully implement e-procurement

Thank you!!!