2007年-世界发展银行全球_Kyrgyz_Republic_-_Public_Procurement_System_Assessment___Using_the_OECD-DACWorld_Bank_Methodology_66页_3mb

Summary of Kyrgyz Republic Public Procurement System Assessment Using the OECD-DAC/World Bank Methodology

Background

The World Bank, in collaboration with the Government of the Kyrgyz Republic (GOK), conducted an assessment of the public procurement system, resulting in the 2002 Country Procurement Assessment Report (CPAR). This report identified key areas for improvement, including the legislative framework, implementation regulations, and institutional capacity. The current assessment, prepared alongside the Country Fiduciary Assessment Update (CFAU), evaluates developments since 2002 within the Public Financial Management (PFM) framework and contributes to a combined financial management and procurement update. It also incorporates stakeholder feedback and legal analysis.

Key Findings

• The Kyrgyz Republic has a comprehensive legal framework for public procurement, with the Public Procurement Law (PPL) enacted in 2004.
• The PPL establishes a decentralized procurement system, requiring all users of central and local budgetary funds to conduct procurement in accordance with the law.
• The State Agency on Public Procurement and Materials Reserve (SAPPMR) is responsible for oversight and support of procurement activities.
• A National Procurement Training Center (NPTC) was established with support from the World Bank's Institutional Development Fund (IDF), training over 1,500 officials and holding seminars for consulting firms, contractors, and suppliers.
• Despite these improvements, many recommendations from the 2002 CPAR remain unimplemented, especially in institutional capacity, procurement operations, and system integrity and transparency.

Pillars and Baseline Indicators (BLIs)

The assessment is based on four pillars:

Pillar I: Legislative and Regulatory Framework (Score: 2.1)

• The PPL is compliant with international standards, but implementation is still lacking.
• Strengths:
  • Decentralized procurement system.
  • Adequate notification of bidding opportunities.
  • Clear provisions for consulting services.
  • Technical assistance and training for procuring entities.

Pillar II: Institutional Framework and Management Capacity (Score: 1.0)

• The SAPPMR lacks adequate staffing and capacity to fulfill its oversight and support roles.
• Procuring entities are poorly organized, and many have not established a separate procurement unit as required by the PPL.
• Weaknesses:
  • Ineffective internal audit systems.
  • No public publication of the Chamber of Accounts (CA) annual reports.
  • Procuring entities receive funds too late in the fiscal year, limiting efficient procurement.
  • The complaint resolution mechanism is not trusted by bidders, with only 20 complaints in 2005 and 40 in 2006.

Pillar III: Procurement Operations and Market Practices (Score: 0.7)

• Weak implementation of the PPL results in poor procurement practices.
• Deficiencies include:
  • Inadequate procurement planning and lack of multiyear planning.
  • Inaccurate tender notices and incomplete bidding documents.
  • Short bid preparation time and poor technical specifications.
  • Contract awards based solely on price, not evaluated price.
  • Tenders being cancelled without notice and poor contract management.
  • Weak supply side trust in the procurement system.

Pillar IV: Integrity and Transparency of the Public Procurement System (Score: 1.2)

• The system has serious deficiencies in integrity and transparency.
• Key issues:
  • Ineffective anticorruption measures.
  • Lack of internal controls.
  • Weak external controls.
  • Poor transparency in the complaint resolution process.
  • No systematic publication of contract awards.

Main Recommendations

1. Preparation of detailed implementation regulations to support the PPL.
2. Adequate staffing and capacity building for the SAPPMR.
3. Assistance to procuring entities to organize themselves for efficient and compliant procurement.
4. Strengthen the National Procurement Training Center (NPTC) and ensure its sustainability through budgetary inclusion.
5. Improve budgeting processes to allow timely allocations for procurement.
6. Establish a procurement data collection system to monitor efficiency and economic use of public funds.
7. Enhance transparency and trust through a reliable complaint resolution mechanism and higher-quality tender documents.
8. Align the PPL with anticorruption legislation and strengthen internal and external controls.

Outstanding Weaknesses

• The PPL is not fully implemented, leading to inefficiencies and poor practices.
• Procurement planning is inadequate, with no multiyear approach.
• Procuring entities are not well-organized, and qualified personnel are in short supply.
• Internal audit systems are absent, and external controls are weak.
• Trust in the system is low, with bidders expressing concerns over transparency and fairness.

Budgetary Share of Public Procurement

• Public procurement accounts for approximately 5% of annual GDP.
• Table 1 shows the increase in procurement expenditure from 2004 to 2006, indicating growing public spending.

Conclusion

While the Kyrgyz Republic has made progress in establishing a legal framework for public procurement, implementation remains weak, and system integrity and transparency are lacking. The GOK needs to take stronger measures to ensure that the PPL is implemented effectively, including strengthening institutional capacity, improving procurement planning, and enhancing internal and external controls. Donors and the GOK should work together to support capacity development and mitigate risks in procurement operations.