2003年-世界发展银行全球_Tonga___Operational_Procurement_Review_46页_3mb

Tonga Operational Procurement Review Summary

Overview

This report, Report No. 27342-TG, presents the findings of the World Bank's Operational Procurement Review (OPR) for Tonga conducted in May-June 2003. It includes inputs from the Asian Development Bank (ADB) and outlines the legal, institutional, and procedural framework for public procurement in Tonga, as well as recommendations for improving procurement performance and establishing a legal framework.

Core Content

Legal and Regulatory Framework

• Tonga lacks formal procurement legislation and policies.
• The Public Finance Management Act (2002) provides a general framework that allows the Minister of Finance to issue regulations for public procurement.
• The Procurement Committee, chaired by the Hon. Minister for Finance, has been established to develop a long-term procurement policy framework.
• The OPR Team recommends the adoption of a simplified version of the UNCITRAL Model Law for the proposed Procurement Act.
• A Procurement Secretariat should be established to support the Procurement Committee.
• A Legal Consultant is needed to draft the Procurement Act and related regulations, with possible funding from the Institutional Development Fund (IDF).

Institutional and Organizational Framework

• Procurement is decentralized across various government ministries and departments.
• Procurement responsibility and accountability are not clearly assigned to specific units.
• A mixed approach is recommended: the Procurement Committee retains policy and oversight functions, while a Procurement Support Group assists ministries with limited procurement capacity.
• There is a potential conflict of interest between the Procurement Policy and Oversight Group and the Procurement Support Group, but the small size of the country and limited procurement capacity justify this structure.
• The Procurement Secretariat will be responsible for oversight and support, and will prepare and disseminate standard procurement documents and a Procurement Manual.

Procurement Procedures, Practices, and Tools

• No standardized procurement procedures exist, leading to inconsistent practices across government departments.
• Procurement for Government-funded projects follows informal procedures, while Development Partner-funded projects adhere to the policies of those partners.
• The Ministry of Works has limited capacity to conduct competitive bidding, with issues such as:
  • Inadequate time for bidders to submit bids
  • Limited advertising of bid opportunities
  • Lack of evaluation instructions in bidding documents
  • Absence of public bid openings
  • Re-bidding when prices are significantly higher than estimates
  • Negotiations with the lowest bidder as a condition for contract award
• The Procurement Committee plans to issue a Procurement Manual and standard documents to address these issues.

Procurement Skills and Capacity Building

• The Government has limited procurement skills, especially in managing international procurement.
• Skills are concentrated in the Ministry of Works and Ministry of Health.
• A capacity development program has been agreed with the Government to enhance procurement capabilities.
• Training should commence only after the Procurement Manual is finalized.

Assessment of Domestic Industry

• Domestic industry in Tonga is limited, with most goods imported.
• There are only five consulting firms capable of supporting civil works, with two being relatively large.
• The construction industry is also limited, with only six firms able to handle contracts up to US$700,000, and ten small firms for contracts up to US$50,000.
• The Procurement Committee is expected to improve procurement practices by engaging local firms and promoting transparency.

Portfolio Performance of Bank-Financed Projects

• The only active IDA-financed project is the Cyclone Emergency Recovery and Management Project, rated satisfactory.
• The Health Sector Support Project is under negotiation and expected for approval in July 2003.
• Both projects are rated with high procurement risks due to lack of legal and procedural frameworks.

Risk Assessment and Monitoring

• Procurement risks are assessed as high due to:
  • No legal framework
  • No uniform written policies
  • No standard procurement documents
  • Weak procurement capacity
• Supervision of Bank-financed projects should occur twice a year, with a 20% post-review of contracts initially.
• If procurement processes improve, the review percentage may be reduced.
• The Procurement Secretariat will provide quarterly progress reports to the Bank.
• The Government, ADB, and the Bank will jointly evaluate progress annually.

Recommended Action Plan

Key Partners and Support

• ADB has provided Technical Assistance (TA) and loans to support economic and public sector reforms.
• AusAID has funded the Strengthening of Budget Systems Project to improve public fund utilization and accountability.
• The World Bank is supporting the Procurement Committee and has proposed an IDF grant to assist in drafting the Procurement Act.

Conclusion

The OPR highlights the need for a comprehensive legal and institutional framework to improve procurement efficiency, transparency, and accountability in Tonga. It recommends a mixed approach of central oversight and support for ministries with limited capacity, along with the development of a Procurement Manual, standard documents, and capacity building initiatives. The Procurement Committee is seen as a key player in driving these reforms, with support from both the World Bank and ADB.