AfDB - EBRD Joint conference in procurement reform in North Africa and SEMED Countries Marrakech 22 and 23 April 2013 Jordan Delegation 22-23/4/2013

1- Background The annual volume of procurement (works, goods and services) is about JD one billion. Number of existing regulations that govern public procurement in Jordan exceeds 30. General review of existing procurement regulations commenced in 1998 and in2009. Country Procurement Assessment Report (CPAR) was issued in coordination with WB in and again in 2009.

2- Properties of the Existing Legislation Acceptable terms of transparency with low risk of corrupt practices. Limited Flexibility. Delay in procedures. Not in harmony with modern procurement practices. Contradicts the requirement of the Government Procurement Agreement (GPA) of the WTO regarding protection.

2- Properties / continued Requirement of a local agent for goods and a local contractor to be associated with foreign contractor. Centralization. Low efficiency. No separation between the implementation and supervisory functions.

3- Areas for Reform and Modernization Modernization of legislation. Development and restructuring of the procurement sector. Improvement of procedures. Develop a national strategy for training human resources.

4- Main Reasons for Reform Separate the regulatory and monitory functions from those of operation and administration. Establish a Higher Procurement Commission (policy, regulation, monitoring, procurement economics, and training). Unification of regulations and procedures for all government institutions. Harmonization with related international agreement and best practices. Increase transparency and ensure fair competition Facilitate possible accession to the GPA agreement of the WTO. Establishing a bid protest mechanism Introducing the concept of e-procurement.

5- The Proposed Unified Regulation The draft regulation is completed (coordination with stakeholders), legal revision. -Main Features: Coverage of all ministries, municipalities and government institutions and agencies including public universities. -Exceptions: The security purchase of the relevant government agencies. The Aqaba Special Economic Zone.

5- The Proposed Unified Regulation/ continued Unification of procedures in all ministries and government agencies and institutions. Unification of procurement procedures pertaining works, goods and services. Move towards decentralization. Raising the thresholds of procurement for tender committees (works, goods and services). Reviving the role of the Higher Procurement Commission. Enhance transparency, fairness, equal opportunities and competitiveness.

5- The Proposed Unified Regulation/ continued Enhance economy and efficiency in procurement. Introduce new methods of procurement, e.g. -Two-stage tendering. Regulating procurement of services. Introduce latest methods of procurement of services, e.g. -Procurement on basis quality and price. -Procurement on quality only. Encouraging the participation of small and medium enterprises SME ’ s in government procurement. Achieve a balanced approach to parties involved in the procurement process

5- The Proposed Unified Regulation/ continued Classification of suppliers, consultants and service providers (in some fields and professions). Training and capacity building Introduce the concept of bonds instead of guarantees Develop a mechanism for remedies, complaints and dispute resolution E – procurement

6. Proposed Structure of the Sector Higher Procurement Commission. Government Tenders Department (GTD). General Supplies Department (GSD). Joint procurement Department (JPD). Main procurement committees in ministries and independent government institutions. Local committees. Secondary committees. Special Committees (limiting recourse) Unified Procurement Department

7. Higher Procurement Commission Policy development of public procurement sector. Monitor the performance of institutions. Continue developing efficient procurement procedures. Prepare relevant instructions to implement Unified Regulation. Establish a conclusive data base. Improve economy in procurement. Develop a national strategy for the use of internet and information telecom-systems in government procurement. Develop a national program for training of staff working on public procurement. Develop an accreditation system for certifying members of tender committees through a set criteria.

8-Government Tenders Department Executing the general policy for procurement of works and technical services Classification of contractors and technical consultants Review and audit tender documents for works and technical services Cooperation and coordination with the higher Procurement Commission and other concerned departments

8-Government Tenders Department/cont Provide advise and consultation to gov. agencies. Provide secretarial services to the Central Procurement Committees. Issue periodical publications on construction sector and on construction materials & work item prices

8-Government Tenders Department/cont Provide advise and consultation to gov. agencies. Provide secretarial services to the Central Procurement Committees. Issue periodical publications on construction sector and on construction materials & work item prices

9-General Supplies Department Executing general policy for the administration of supplies and general services Classification and prequalification of suppliers and general services providers Purchasing of common use supplies for the Government departments Providing secretarial services to the Central Committee Maintaining records for durable supplies and storing them

9/continued Review and audit of tender documents for supplies and general services Conducting the studies required to develop supplies management Coordinating with the Higher Procurement Commission and other concerned departments Issue periodical publications on relevant matters

8- Capacity Building for Human Resources Develop a National Training Strategy Ensure the execution of the above Strategy by the government institutions. Training on use of ICT and the internet in public procurement Seek to make Jordan a Regional Training Center for E-Procurement according to International Standards.

THANK YOU!