2009年-世界发展银行全球_Republic_of_Armenia___Country_Procurement_Assessment_Report_198页_12mb

Republic of Armenia Country Procurement Assessment Report Summary

Core Content

This report is a detailed assessment of the public procurement system in the Republic of Armenia, updating the May 2004 Country Procurement Assessment Report (CPAR). It evaluates the current status of procurement practices, identifies key challenges, and provides recommendations for improvement. The assessment is conducted using the OECD-DAC/World Bank methodology, which benchmarks procurement systems against international standards across four pillars: legislative and regulatory framework, institutional framework and management capacity, purchasing operations and market practices, and integrity and transparency.

Main Views and Key Information

1. Public Procurement Overview

• Procurement Expenditure: Public procurement accounts for about 15% of GDP, equivalent to US$12 billion in 2008, and is expected to grow.
• Legislative Framework: The Public Procurement Law (PPL), enacted in January 2005, and several decrees by the Government of Armenia (GOA) and the Ministry of Finance (MOF) form the basis of the procurement system.
• Centralization: Procurement is primarily centralized under the State Procurement Agency (SPA), which coordinates with line ministries. However, some elements remain decentralized.
• Transparency: Public disclosure of procurement processes was introduced through the MOF Official Procurement Bulletin.
• Currency Equivalence: US$1 = AMD 372.84 (as of April 18, 2009).

2. Implementation of 2004 CPAR Action Plan

• Progress: Some recommendations from the 2004 CPAR have been implemented, including the PPL and related decrees.
• Unimplemented Recommendations: Key areas needing improvement include:
  • Expansion of PPL to public enterprises and utility companies.
  • Further decentralization of procurement authority to procuring entities.
  • Clearer provisions on bid evaluation criteria and shortlisting of consulting firms.
  • Reduction in the use of single-source procurement.
  • Alignment of budget formulation and execution with procurement needs.
  • Strengthening procurement statistics collection, analysis, and maintenance.
  • Improvement in internal and external audit mechanisms.
  • Establishment of an independent complaint review mechanism.

3. Benchmarking Results

• Pillar I (Legislative and Regulatory Framework): Score of 2.0, indicating progress towards international standards.
• Pillar II (Institutional Framework and Management Capacity): Score of 1.7, showing the need for significant improvements.
• Pillar III (Purchasing Operations and Market Practices): Score of 1.5, highlighting major deficiencies.
• Pillar IV (Integrity and Transparency): Score of 1.7, indicating a need for stronger oversight and transparency mechanisms.

4. Case Studies and Recommendations

• E-Government Procurement (e-GP):

  • The MOF is recommended to continue leading e-GP efforts.
  • An updated strategy with a phased implementation approach is needed.
  • Focus on developing e-tendering and e-purchasing systems.
  • Capacity building for procuring entities and the private sector is essential.

• Public Procurement in the Health Sector:

  • Procurement authority should be decentralized to the Ministry of Health (MOH) and other health sector entities.
  • Clarity in audit rules and strengthening of audit bodies is required.
  • A detailed review of pharmaceutical procurement is recommended due to user complaints.

• Public Procurement in the Transport Sector:

  • Decentralization of procurement authority to the Ministry of Transport and Communication (MOTC) is recommended.
  • MOTC should establish a procurement unit with qualified personnel.
  • A pilot e-GP system in the transport sector is suggested.

• Mitigation and Management of Corruption:

  • An independent appeals system is needed, free from conflict of interest.
  • Implementation of a code of ethics, asset reporting, and conflict of interest rules.
  • Strengthening audit mechanisms and clarifying debarment and blacklisting procedures.
  • Training procurement officials to identify red flags for corruption.

• Public-Private Partnership (PPP):

  • A PPP act and provisions in the PPL should be adopted.
  • A PPP strategy and action plan should be designed.
  • A PPP unit should be established within a ministry, such as the Ministry of Economy.
  • An independent oversight institution involving private sector and civil society is recommended.
  • Continuous awareness, education, and training programs for PPP should be institutionalized.

Key Recommendations

• Amend the PPL to address the following:

  • Expand its application to public enterprises and utility companies.
  • Reduce the use of single-source procurement through better criteria definition.
  • Incorporate provisions for ethical behavior, asset reporting, and conflict of interest.
  • Establish an independent complaint review system.
  • Create a council representing public procurement stakeholders.

• Finalize and disseminate implementation regulations and standard bidding documents for goods, works, and services.

• Design and implement a capacity building plan for procuring entities and service providers to enhance awareness and compliance with the PPL.

• Improve internal and external audit mechanisms to ensure accountability and transparency.

• Implement action plans from case studies, particularly those on e-GP, health and transport sectors, anti-corruption measures, and PPP.

Implementation

• The Authorized Body (AB), primarily the MOF, is responsible for implementing the remaining actions from the 2004 CPAR and the current assessment.
• Collaboration with the Ministry of Health and Ministry of Transport and Communication is needed for the implementation of case study recommendations.
• The MOF has expressed interest in applying for an IDF grant from the World Bank to support short-term recommendations.

Conclusion

The report outlines a comprehensive roadmap for improving Armenia's public procurement system, emphasizing transparency, efficiency, and competitiveness. While some progress has been made, significant work remains to align the system with international best practices, particularly in institutional capacity, market practices, and integrity mechanisms. The recommendations focus on legislative reforms, decentralization, e-GP development, and strengthening oversight and accountability.