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Why Reform? |
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Bangladesh constitution has no direct provision on public procurement nor does any
nationally applicable procurement law exist to regulate approximately US$3 billion
per year of government procurement. Nationally applicable procurement rules in the
public sector in Bangladesh are yet to be established. |
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Each department and public sector entity has its individual manuals and procedures.
Inadequate procurement expertise, complex bureaucratic decision-making processes,
lack of transparency, allegations of corruption in the procurement of goods, works
and services have contributed considerably to slow down project implementation. |
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Project implementation is also hampered by the poor selection criteria for key personnel
including project directors who are not fully familiar with project management concepts
and procurement procedures. Hence the need for improved governance in public sector
procurement. It was felt that in order to achieve this, a permanent unit should be
established to provide technical advice to all agencies of the government including
ministries. The CPTU of the IMED will be that permanent unit. |
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How The Project Started? |
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The poor procurement performance under different projects led to the assessment of
present public procurement policy, framework, institutions and staff skills. The Country
Procurement Assessment Report (CPAR) which was prepared by World Bank, in agreement
with the Government of Bangladesh, identified many deficiencies in the procurement
system of the Government of Bangladesh. The major deficiencies are: |
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 Absence of sound legal framework
governing public sector procurement
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Complex bureaucratic procedure causing
delay |
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Absence of sound legal framework
governing public sector procurement |
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Complex bureaucratic procedure causing
delay |
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Lack of adequate professional competence
of staff to manage public procurement |
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Generally poor quality bidding documents
and bid evaluation |
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Ineffective administration of contracts |
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Absence of adequate mechanism for
ensuring transparency and accountability |
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So, the need was felt for improving governance in the public procurement area. Improved
procurement performance will accelerate project implementation which will have direct
and indirect beneficial impact on reduction of poverty. Therefore, on 14 February,
2002 the Government approved the implementation of the "Public Procurement Reform
Project" with IDA assistance.
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The Objectives
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Contribute to improved performance in public procurement through introduction
of measures to make the system compliant with internationally agreed norms for efficiency,
transparency and accountability & through creation of national procurement professionals. |
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Components |
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The Project has three main components: |
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Establishment of Central Procurement
Technical Unit (CPTU) within the IMED |
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Implementation of Public Procurement
Reform |
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Improvement of Procurement Management
Capacity
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Identification of activities under the above components will reveal that actions will
be concentrated on |
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the following areas: |
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Economy and Efficiency |
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Transparency |
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Accountability |
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Procurement Management Capacity
Building |
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