2002年-世界发展银行全球_Bangladesh___Country_Procurement_Assessment_Report_73页_4mb

Bangladesh Country Procurement Assessment Report Summary

Core Content

This report provides an assessment of the public procurement system in Bangladesh, highlighting its legal framework, current practices, deficiencies, and recommendations for improvement. It was prepared by the World Bank and other international financial institutions (IFIs) to support better procurement management and transparency in the country.

Main Points and Key Information

1. Bangladesh and Its Political System

• Bangladesh is a unitary democratic republic with a written constitution.
• The political system is modeled on the British parliamentary system, with the president as the head of state.
• The judiciary is independent of the executive branch.
• Major political parties include the Awami League, Bangladesh National Party, Jatiya Party, and Jamal-e-Islami Party.
• Since 1996, the Awami League has been in power.

2. Public Procurement Regime

2.1 Legal and Regulatory Framework

• There is no direct provision in the constitution on public procurement.
• No specific procurement law or decree exists.
• The CGFR (Compilation of General Financial Rules), originally from British rule, is the primary guide for procurement.
• It outlines broad principles but leaves detailed rules to departments.
• The PWD (Public Works Department) code and the Department of Supply and Inspection manual are used for works and goods procurement.
• These documents have not been significantly revised since the 1930s.
• For externally funded projects, the ERD Guidelines (1992) are used, which are based on World Bank guidelines.

2.2 Volume and Handling of Public Procurement

• Annual public procurement volume is around $3 billion, with $2 billion being externally funded.
• Central ministries handle minimal procurement (e.g., food, printing, stationery).
• Major procurement is handled by public sector corporations and semiautonomous bodies (e.g., Water Development Board, WASA, Petrobangla).
• Contract approval limits are generally $2.0 million, with some exceptions.
• Larger contracts require ministry or cabinet committee approval.

2.3 Overview of Procedures and Practices

• Most agencies follow the open bid system, similar to World Bank ICB guidelines.
• Delays are a significant issue in procurement, affecting both local and externally funded projects.
• Common causes include poor advertisement, short bidding periods, unclear specifications, and lack of professional competence in evaluation committees.
• Bank-assisted projects use standardized bidding documents (SBDs) and are closely monitored, resulting in better competition and quality.

2.4 Issues and Possible Solutions

2.4.1 Delays

• Delays in the procurement process are widespread and cause higher costs, delayed benefits, and increased corruption.
• The average time from bid invitation to contract award is significantly longer than the recommended 150 days.
• Solutions include:
  • Training staff in writing specifications.
  • Establishing a single evaluation committee.
  • Revising the delegation of authority.
  • Setting a time limit for contract awards to avoid delays.

2.4.2 Local Procurement of Works and Goods under Local Budget

• Local procurement procedures are outdated and inefficient.
• Contractors often submit bids only on the last day, and the process is manipulated.
• The use of form 2911 for works and form 2908 for goods is archaic and not updated.
• A new procurement document is being drafted by the Roads and Highways Department and LGED.

2.4.3 Selection of Consultants

• Consultant selection is plagued by delays and corruption.
• Most contracts above $200,000 require ministry approval.
• Committees often lack expertise and subject matter knowledge, leading to inconsistent evaluations.
• Recommendations include:
  • Reducing layers in the approval process.
  • Training committee members.
  • Including an independent, technically proficient member in the evaluation committee.

2.4.4 Transparency and Public Confidence

• There is a lack of transparency and public confidence in procurement.
• No central authority or policy document governs public procurement.
• A public procurement law or rules based on UNCITRAL model law is recommended to standardize procedures and improve transparency.
• A review mechanism for bidders should be established as an independent body.

2.4.5 Manpower and Skills

• Public servants generally have high education levels but lack formal procurement training.
• Procurement procedures are learned through experience or special training.
• Most staff lack understanding of procurement objectives, concepts, and ethics.
• Training is essential for improving the quality of procurement and supporting other reforms.

3. Expenditure Control and Statutory Audit

• Internal financial control is supervised by the Ministry of Finance.
• External audit is conducted by the CAG (Comptroller and Auditor General).
• The CAG audits all government and public sector expenditures and submits reports to the Public Accounts Committee.
• Audit effectiveness is limited, and recommendations are not always implemented.
• Training for audit staff in procurement concepts and procedures is needed.
• Timely government responses to audit findings are essential, with sanctions for non-compliance.

4. Private Sector and Business Community

• The private sector is not well-developed in manufacturing.
• Most private sector players are commodity traders or local agents of foreign manufacturers.
• The consultant industry is reasonably well-developed due to the availability of skilled professionals.
• The private sector needs training, access to finance, and a strict code of ethics to support effective procurement.

5. Corruption

• Corruption is a major challenge in public procurement.
• It is widespread and affects all levels of government and bureaucracy.
• Procurement is a prime area for corruption, as highlighted in past reports.
• Corruption must be addressed through coordinated efforts across all sectors.
• The report recommends reforms such as a procurement law, mandatory bidding, and a code of conduct.

Recommendations

6.1 Strategic Approach

• A gradual improvement of the existing procurement regime is recommended.
• Actions are prioritized based on their impact on the current system.

6.2 Actions for the Government

• Create a Central Procurement Policy Unit in an appropriate ministry.
• Develop and issue Public Procurement Rules and Procedures.
• Prepare Standard Bidding and Contract Documents using World Bank and other IFI models.
• Review and revise the delegation of powers to public sector corporations and autonomous bodies.
• Simplify the approval process by reducing layers.
• Introduce regular training for procurement staff and officials.

6.3 Recommendations for the Bank, IFIs, and Donors

• The World Bank and other IFIs should support the development of a public procurement law.
• They should provide technical assistance and training.
• Ensure that NCB procedures are acceptable and followed in Bank-funded projects.

6.4 Timetable

• A five-year phasing plan is recommended for implementing procurement reforms.
• The World Bank and other IFIs should coordinate with the government and other donors.

6.5 Technical Assistance by the World Bank and Other IFIs

• The Bank should provide technical assistance in the form of training and capacity-building.
• This includes training on procurement procedures, technical specifications, and evaluation methodologies.

6.6 Coordination with Other Donors

• Coordination with other donors is essential to ensure consistent and effective procurement reforms.
• Donors should support the development of a central procurement policy unit and the adoption of a procurement law.

Conclusion

• The procurement system in Bangladesh is outdated, inefficient, and prone to corruption.
• Reforms are necessary to improve transparency, efficiency, and public confidence.
• A central procurement policy unit and a public procurement law are key to achieving these goals.
• The report emphasizes the importance of training, standardization, and institutional capacity-building in improving procurement practices.