2007年-世界发展银行全球_NWFP_Province_Pakistan___Procurement_Systems_Performance_Assessment_25页_550kb

NWFP Procurement Systems Performance Assessment Summary

Core Content Overview

This report presents the results of a procurement systems performance assessment conducted in the North-West Frontier Province (NWFP) of Pakistan in May 2007, using the OECD-DAC Baseline Indicator System (BIS). The assessment was carried out by a task team comprising members from the World Bank, Asian Development Bank (ADB), European Commission, and the UK Department for International Development (DFID). The goal of the assessment was to evaluate the effectiveness, efficiency, and transparency of the procurement system in NWFP, and to provide a basis for reform and donor coordination.

The BIS framework consists of four pillars and twelve indicators, with scores ranging from 3 (full achievement) to 0 (failure to meet the standard). The report evaluates the procurement system based on these indicators and highlights the need for improvements in legal, institutional, operational, and transparency-related areas.

Key Stakeholders and Methodology

Stakeholders Interviewed

• Special Secretary Finance
• Staff of NWFP's procurement-related departments (e.g., FHA, W&S, IPD, etc.)
• Staff of Tehsil Municipal Administrations (TMAs)
• Consultants and Contractors
• Audit Department

Support and Review

• Logistical Support: Provided by Altaf Ahmad and Abid Hussain Chaudhry (World Bank)
• Review: Conducted by Professor Dr. Khawaja Amjad Saeed
• Peer Review: Maria V. Vannari (World Bank) and Peter Trepte (International Consultant)

Assessment Results

Pillar I: Legislative and Regulatory Framework

Overall Score: 1.2

Key Findings:

• The NWFP Ordinance No. XVIII of 2002 provides the legal framework for procurement.
• The Ordinance covers all areas of procurement, including goods, works, services, and consulting services.
• It has precedence over the rules for specific procurement types.
• The rules for consultancy services and goods/works are based on the Ordinance and are available in the public domain.
• However, the procurement procedures are outdated and not aligned with modern international standards.
• The rules lack transparency and clarity in areas such as pre-registration, qualification criteria, and contract evaluation.
• Direct contracting is allowed under certain conditions, but the process is not well defined, and the rules may allow for preferential treatment.
• The use of outdated cost estimates (based on 1999 prices with 90% premium) leads to discrepancies with market prices.
• Tender evaluation is based solely on the lowest evaluated price, with limited attention to technical and financial criteria.
• Post-bid negotiations are allowed under specific conditions, but the process is not clearly outlined.
• Tender documentation is insufficient, and the process lacks standardized templates for consulting services.

Indicator 1 Score: 1.5
Indicator 2 Score: 1.0

Pillar II: Institutional Framework and Management Capacity

Overall Score: 1.0

Key Findings:

• Procurement planning is integrated into the budget formulation process.
• Budget proposals consider multiyear development plans and fiscal space.
• Procurement plans are revised based on budget allocations.
• The budget law and financial procedures support timely procurement, contract execution, and payment.
• However, the procurement system is not well mainstreamed into the overall public sector governance.
• There is a lack of institutional capacity and coordination in procurement management.
• The procurement system is not well integrated with the financial management system, which affects the efficiency and transparency of the process.

Indicator 3 Score: 2.0

Main Issues and Recommendations

Legal and Regulatory Gaps

• The procurement framework is outdated and not aligned with international standards.
• The rules are not comprehensive and lack detailed procedures for pre-qualification, contract evaluation, and dispute resolution.
• There is a need for updating the rules and aligning them with modern procurement practices.

Institutional and Management Weaknesses

• The procurement system is not fully integrated into the public sector governance system.
• There is a lack of institutional capacity and coordination.
• The process is not transparent, and the review mechanisms are not well defined.

Operational and Market Practices

• The procurement methods are not fully efficient.
• The use of pre-registered firms limits fair competition.
• Tender documentation is insufficient and lacks standardization.

Integrity and Transparency

• The complaints review process is not well defined.
• The rules allow for post-bid negotiations without clear guidelines.
• There is a need for strengthening the transparency and accountability mechanisms.

Conclusion

The procurement system in NWFP is not fully compliant with international standards and requires significant reforms. The assessment highlights the need for updating legal and regulatory frameworks, improving institutional capacity, and enhancing transparency and accountability mechanisms. The findings will support the development of a prioritized strategy for capacity building and change management, and will help donors coordinate their assistance more effectively.