Public Procurement Principles and Cycle Shreedhar Panthee Director,PPMO 9851201377

60-70% of National Budget in Public Procurement Risk Factors 60-70% of National Budget in Public Procurement Public procurement is main sector of Public Financial Management System Public Procurement is the government activity which is most vulnerable to corruption Lower capital expenditure Lower progress of National Priority Projects Weak contract management & enforcement Low contractor performance Weak control over Consultants Increase irregularities Amount

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SUCCESS 10 + STRESS 90 = LIFE 100 SUCCESS 90 + STRESS 10 = LIFE 100

Topics of Discussion Procurement and its Principles Public Procurement Act & Regulation Procurement Cycle PPMO & its Role and Responsibilities Blacklisting Procurement Review/Procurement Complain Issues in Public Procurement SBDs preparing by PPMO

Public Procurement “Procurement” means acquisition of any goods, consultancy services or other services or carrying out or causing to be carried out any construction works, by a public entity pursuant to this Act; ;fj{hlgs vl/b eGgfn] ;fj{hlgs lgsfon] o; P]g adf]lhd s'g} dfn;fdfg, k/fdz{ ;]jf jf cGo ;]jf k|fKt ug{] jf s'g} lgdf{0f sfo{ ug{] jf u/fpg] sfo{ ;+emg' k5{ .

Difference Between Private & Public Procurement Private Procurement Does not follow a set procedure Good economic result is the sole objective Public Procurement Follows a set procedure Besides economy, accountability, non-discrimination among potential suppliers Respect for international regulations/ practices Protection of the public interest Public No individual or single owner No individual buyer and supplies It is representative by govt. No individual or group interest

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Role of PPMO Monitoring of public procurement Advice and Opinions Training and interaction Research and Publication SBD preparation e- GP operation Blacklisting

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Issues in Public Procurement Packaging Resources Management in multiyear Project Site Clearance, EIA, IEE/Site possession PQ Extension of Bid Validity Period Bid Capacity, Works in Hand DLP –Rarely Claim by PEs Advanced Payment Emergency Procurement Acceleration/Speeding Up

SBDs preparing by PPMO Bid document of Direct purchase Bid document of Other Services Sealed Quotation Works and Goods EPC Document Design and Build Document Framework Agreement Document Standard of P Q Standard of V O, Price Adjustment, Emergency Procurement, DLP Management

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