2003年-世界发展银行全球_Mongolia___Country_Procurement_Assessment_Report_70页_7mb

Mongolia Country Procurement Assessment Report Summary

Executive Summary

This report is the World Bank's (WB) first Country Procurement Assessment Report (CPAR) for Mongolia, produced in close cooperation with the Asian Development Bank (ADB). The main objective is to review the efficiency and transparency of procurement in all sectors and develop an action plan to strengthen the system, which in turn will support higher economic growth. The report also provides guidance to WB and counterpart staff on procurement aspects of new projects and the supervision of ongoing projects.

Key Findings and Issues

Legal and Regulatory Framework

• The Public Procurement Law of Mongolia (PPLM) was approved in April 2000 with implementation guidelines and standard documents.
• The PPLM is comprehensive but contains excessive detail for basic enabling legislation.
• It would benefit from periodic amendments to reflect implementation experience and dynamic factors like exchange rates and economic growth.
• Ambiguities exist in the law regarding implementation and monitoring responsibilities.

Implementation of the Law

• The Ministry of Finance and Economy (MOFE) is responsible for implementing the PPLM, but the law is unclear about day-to-day responsibilities.
• MOFE has increasingly taken over procurement activities, especially for larger contracts, leading to a workload that is not suitable for its capacity.
• This centralization has created conflicts of interest and inefficiencies in the use of qualified resources from line agencies and their Project Implementation Units (PIUs).

Monitoring of the Law

• The Procurement Policy and Coordination Division (PPCD), established in 2000, was restructured in 2001 and placed under the direct supervision of the Minister of Finance and Economy in 2002.
• The WB team recommended upgrading PPCD's status to that of the Central Procurement Monitoring Office (CPMO) to enhance its role in monitoring and improving procurement efficiency.

Knowledge of Procurement Procedures

• While many project staff claim to understand procurement procedures, detailed analysis shows otherwise.
• ADB has provided regular procurement training, but most WB-funded projects have only received limited training in the last five years.
• Further training is needed, particularly in practical aspects and procedures for WB-financed projects.
• Higher-level line agency staff and private sector bidders also lack detailed knowledge of procurement procedures and would benefit from training.

State-Owned Enterprises (SOEs)

• SOEs are involved in procurement on both government and WB-funded projects.
• Some SOEs may be dependent on line agencies, which could affect their eligibility.
• The Government is privatizing SOEs, excluding those providing essential services.
• Until privatization is complete, WB project PIUs should conduct post-qualification checks for SOEs submitting the lowest bids.

Tax Issues

• Taxation on donor-funded projects is inconsistent, leading to confusion and financial burden on contractors and consultants.
• Clarification and consistent application of tax rules are needed, particularly for customs, excise duties, VAT, and income tax on consultants.

Private Sector Procurement and Performance

• The private sector now contributes about 75% of GDP, up from 5% in 1990.
• There are no specific regulations for private sector procurement, and none are considered necessary at this time.
• Private companies generally perform well on public sector contracts, especially when working with foreign partners.
• However, they face challenges in obtaining financing, which deters participation in larger contracts.

Key Recommendations

Legal and Regulatory Streamlining

• Streamline and strengthen the procurement law, clarifying ambiguities and simplifying it into a basic enabling instrument.
• Conduct a dialogue with the Government to resolve ambiguities and define implementation responsibilities.
• Review and revise the law into a simplified form supported by implementing rules and regulations (IRRs).

Institutional Strengthening

• Relocate PPCD to be directly responsible to the Minister of Finance and Economy.
• Upgrade the status of PPCD to reflect its importance and redefine its role to include autonomy in monitoring procurement efficiency.
• Define responsibilities for day-to-day procurement activities, with line agencies implementing and MOFE monitoring closely.

Training and Capacity Building

• Design detailed and practical procurement training programs to build on existing initiatives.
• Extend training to all levels of central, provincial, and district government.
• Include training for trainers (for PPCD/CPMO), civil society, the media, and private sector contractors and consultants.
• Implement training programs and seek grant financing to support them.
• Evaluate results and refine training programs as they proceed.

Taxation and Compliance

• Rationalize and simplify tax procedures for grant- and credit-funded projects.
• Conduct a dialogue with the Government to address inconsistencies in tax application.
• Draft procedural orders that clarify how taxation is applied to donor-funded projects.

Proposed Action Plan

Acknowledgements

• The WB team acknowledges the support from MOFE, ADB, and the private sector.
• The Procurement Policy and Coordination Division (PPCD) was the counterpart agency for the CPAR.
• Key individuals from the Government and ADB provided valuable guidance and information during the preparation of the report.

Conclusion

The CPAR highlights the progress made by Mongolia in establishing a fair and transparent procurement system, particularly over the past four years with ADB support. However, further refinements are needed to ensure the system is efficient, transparent, and aligned with economic growth goals. The report outlines a clear action plan to address these issues, supported by both the WB and ADB, and emphasizes the importance of training, institutional reforms, and tax policy clarity.