Académique Documents
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(Cabinet Division)
Annual Report
2014-15
MISSION
To promote fair and open competition, procure quality product and services and regulate
the public procurement system while maintaining public interests.
VISION
Establishment of self-sustained public procurement system offering best value for money
to all stakeholders.
Annual Report
2014-15
Public Procurement
Regulatory
Authority
CONTENTS
2. In the Year 2015 PPRA performed its functions impressively and took
provincial PPRAs and International organizations on board while taking critical strategic
decisions. Special emphasis was given on workshops and capacity building activities
resulting in strengthening of procurement regime in the country and put extra emphasis to
ensure effective public procurement practices and attainment of value for money.
( Nazrat Bashir )
Managing Director
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3. The Authority
Public Procurement Regulatory Authority (PPRA) was established in the year 2002,
under the Public Procurement Regulatory Authority Ordinance 2002 to build and strengthen
Government capacity to develop a modern transparent and cost effective public procurement
system and regulate public sector procurement of goods, services and works with a view to
achieving transparency, accountability and quality of public procurement, improving
governance and management.
Federal Government nominates the three members from private sector. The private sector
members are appointed for a term of three years and shall be entitled to such terms and
conditions as the Federal Government may determine.
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MEMBERS OF PPRA BOARD
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3.3 Powers and Functions
1. Subject to other provisions of PPRA Ordinance 2002, the Authority may take
such measures and exercise such powers as may be necessary for improving
governance, management, transparency, accountability and quality of public
procurement of goods, services and works in the public sector.
d) make regulations and lay down codes of ethics and procedures for public
procurement, inspection or quality of goods, services and works;
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g) provide and coordinate assistance to procuring agencies for developing
and improving their institutional framework and public procurement
activities;
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*
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3.4 Existing Strength
Rank Wise/ Scale Wise Vacancies
Posts
Rank Wise/ Scale Scale / PPRA
Filled/Existing
Wise Vacancies Scale
Strength
Managing Director BS 22 1
Director General BS 20 1
Director BS 19 2
Deputy Director BS 18 2
Assistant Director BS 17 3
Private Secretary BS 17 1
Web Designer BS 16 1
APS BS 16 2
Web Analyst BS 15 1
Assistant BS 15 2
Stenographer BS 15 1
Stenotypist BS 12 1
Hardware
BS 12 1
Technician
Cashier BS 12 1
UDC BS 09 3
LDC BS 07 6
Driver BS 04 5
D.R BS 04 2
Naib Qasid BS 01 11
Sweeper BS 01 1
Total 49
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Managing Director
Director -I Director-II
Deputy Director Assistant Director Assistant Director Deputy Director Assistant Director
(Legal) II III (Admn) I
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4. ROLE OF PPRA IN PROCUREMENT SECTOR
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5. PPRA has organized Second South Asia Regional Public Procurement
Conference in collaboration with ADB and World Bank. The Chair of Second South Asia
Regional Public Procurement Conference was transferred to Pakistan for next two years. The
conference was an annual learning and networking event for the heads of public procurement of
the eight South Asian countries and was a follow up to the one held in Kathmandu in April
2011 hosted by the government of Nepal.
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5. MONITORING & IMPLEMENTATION
VIOLATIONS
% OF
TENDER INDICATED /
PERIOD VIOLATION
UPLOADED LETTERS
S
ISSUED
01-07-2014
to 31844 4304 13.52
30-06-2015
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6. COMPLAINT HANDLING MECHANISM
Under the PPRA Ordinance 2002 and the Public Procurement Rules 2004, PPRA
does not enjoy any powers to address grievances of the bidders and suppliers before or after the
award of contracts. Under Rule (48) of the PPRA, 2004 any bidder feeling aggrieved by any act
of the procuring agency after submission of his bid may lodge a written complaint to the
procuring agency concerning his grievance not later than fifteen days after the announcement of
the bid evaluation report.
2. The bidders, who made complaints to the Authority, were advised under Rules 48
(2) of the PPRA 2004 to approach the procuring agencies directly for redressal of their
grievances. Complaints received from the bidders were forwarded to the concerned procuring
agencies for submission of a report. The reports so received were then analyzed and advice
tendered to improve governance, transparency, accountability and quality of public procurement.
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8. GUIDANCE ON INTERPRETATION OF RULES
PPRA is extending necessary guidance to all procuring agencies and the bidders
in response to their request for clarification of Public Procurement Rules, 2004. During the
2014-15 public sector entities continued to seek legal clarifications, interpretation of rules and
regulations pertaining to different aspects of procurement such as selection of single qualified
bidder, expiry of bid validity period, purchase of books, procurement by NGOs, applicability of
Public Procurement Rules, 2004 to public private partnership (PPP), insurance services, training
matters and medical services, constitution of purchase committees, acceptance of conditional
bids, determination of scoring ratio in evaluation of bids, payment of taxes imposed after
declaring the lowest evaluated bidder, prequalification of suppliers / contractors and purchase of
vehicles assembled in Pakistan etc. All these requests of procuring agencies were promptly
processed and advice tendered.
Advisory Group on Public Procurement (AGPP) was formed in April 2013 with
the objective to bring all stakeholders together on one platform to create partnerships and
provide support to strengthen the public procurement system at federal and provincial levels.
The AGPP is composed of Federal and Provincial PPRAs. The second meeting of the Advisory
Group on Public Procurement (AGPP) was held on September 2-3, 2013 in Islamabad. The main
agenda was to finalize the draft National Procurement Strategy that has been developed under
the aegis of PPRA. Representatives of federal and provincial PPRAs, officers of Finance
Departments of the provinces and procurement specialists of international development agencies
participated in the two day event. Formulation of National Procurement Strategy was taken as
the first step to push forward the reform agenda in a systematic and holistic manner.
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ultimate goal to improve the procurement governance. The workshop was attended by senior
management of PPRA from federal and all provincial PPRAs. Procurement experts from donors
including World Bank (WB), Asian Development Bank (ADB) as well as a team of USAID and
ASP-RSPN participated. Dr. Ateeq-urRehman, M&E expert gave a presentation on draft M&E
framework developed for PPRA. The draft M&E framework is based on five pillars namely
Improved laws & procedures, increased compliance of laws / rules / regulations, Effective
competition, Enhanced capacities in public procurement and Redressal of stakeholders
grievances. Based on the discussion held in the meetings, the framework will be further refined
and indicators will be further improved. MD PPRA thanked all participants for their valuable
feedback and suggestion in finalization of M & E Framework. For future AGPP workshops, it
was decided that maximum use of available resources would be made while avoiding the
unnecessary duplications. Besides discussing the Public Private Partnership (PPP) in future, it
was concluded that training of staff is required to help enhance their skills; therefore
development of a procurement cadre was proposed to achieve the overreaching goal of public
procurement.
Participants of the 3rd Meeting of the Advisory Group on Public Procurement (AGPP) held in Islamabad
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10. PAKISTAN BECAME OBSERVER TO AGREEMENT ON
GOVERNMENT PROCUREMENT (GPA) ON 27th FEBRUARY, 2015
In recognition of legal framework of public procurement being compliant to
international standards, Pakistan has been accorded the status of Observer to the Agreement on
Government Procurement (GPA). Pakistan has already undertaken domestic procurement
reforms and has developed a strategy for achieving a "fair, transparent, efficient and effective"
public procurement regime. The current Parties to the plurilateral GPA are: Armenia, Canada,
the European Union (with its 28 member states), Hong Kong China, Iceland, Israel, Japan,
Korea, Liechtenstein, Kingdom of the Netherlands with respect to Aruba, Norway, Singapore,
Switzerland, Chinese Taipei and the United States. Japan, the EU, the US, Canada, Norway,
Hong Kong-China, Chinese Taipei and Switzerland welcomed Pakistan's decision. Members of
GPA hoped to soon receive Pakistan's application for its accession to the GPA.
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three levels i.e. Impact, outcome and output. M&E Framework thus gives a holistic view of the
procurement management system.
Ms. Nazrat Bashir, MD PPRA, in her welcome speech, highlighted that the
concept of procurement agents is relatively new in Pakistan. Though the current legal framework
of Pakistan does not specifically mention the term procurement agent but it allows hiring of
consultants for different stages of the procurement cycle specially preparation of bidding
documents or evaluation of the bids. Mr. Werner Liepach, Country Director, ADB Resident
Mission, Pakistan and Mr. Rustam Abdukyumov, Procurement Specialist, ADB, in their
addresses deliberated that the seminar will provide participants a forum for sharing their
experiences and approaches on the use of procurement agents, and discuss related issues, such as
governance, integrity and capacity development. Mr. Werner Liepech and Mr. Rustam
Abdukyumov re-affirmed ADBs continued support on the priority areas highlighted in the
Regional Technical Assistance (RETA). Ms. Fan Minhong, ADB Resident Mission, China
during her presentation on Use of Procurement Agents in Peoples Republic of China (PRC),
gave an overview of the procurement agents in PRC, discussed roles and responsibilities of the
procurement agents, the recruitment of procurement agent, strengths and weaknesses of using
procurement agents and lessons learned from PRCs practice. Mr. Qamar Sarwar Abbasi, Joint
Secretary also represented EAD in the seminar. Strategy on use of Procurement Agents will be
developed with the assistance of ADB.
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The traditional paper-based procurement processes have inherent problems like
incomplete management information, inefficient procedures, high compliance costs for suppliers
& departments, inferior procurement methodologies and a profound lack of transparency. Paper-
based procurement also results in uncoordinated buying across government with different
departments having different contracts and different prices for the same goods.
3. There will be no need for special legislation because the existing legal framework
in Pakistan is adequate and supportive of e-procurement. Government of Pakistan adopted its IT
Policy in the year 2000 after studying UNCITRAL model laws and reviewing different
implementation schemes of electronic authentication, regulatory models and best practices.
4. To avoid the risk of incompatibility with user requirements and capacities, the
study recommends that e-Procurement services and functions be introduced initially in some
designated organizations and in a phased manner. The strategy would take three years for
implementation of the e-procurement regime, including all the phases, viz., institutional
structure, publication of guidelines, publication of e-signature / e-documents rules, e-
procurement in pilot agencies, hardware infrastructure, change management/capacity building
and final roll-out etc.The Strategy having been approved by PPRA Board has been endorsed by
the Government. As soon as funds are arranged, implementation of the Strategy will be initiated.
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In order to strengthen and professionalize the procurement cadre in public sector
organizations, after a detailed Training Needs Assessment (TNA), a Training Strategy has been
developed with the assistance of World Bank, in consultation with provincial / regional PPRAs
and various Government Departments. Purpose of the study was to carry out a detailed
assessment of training needs and develop a comprehensive training strategy to professionalize
the procurement function in Pakistan.
3. The Strategy having been approved by PPRA Board has also been endorsed by
the Government. As soon as funds are arranged, implementation of the Training Strategy will be
initiated.
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Public Sector as well as Private Sector. During the FY 2014-15, PPRA trained 429 participants
through 22 training programs for the capacity building of officials of the Public Sector as well as
Private Sector. Similarly, during FY 2013-14, 13 trainings were conducted in which 231
participants from Govt. sector were trained.
2. NIP, within its legal framework in the form of PPRA Ordinance 2002, Public
Procurement Rules 2004 and the PPRA Regulations, plays a pivotal role in the achievement of
excellence in governmental and institutional procurement through education, certification and
professional development of procurement professionals.
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Participants interacting with each other during the practical exercises / case study based on the legal
framework of PPRA
MD PPRA awarding certificate to during training program held on 29-30 Sept 2014, 2014
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gazette. The gazette was published on monthly basis till December, 2011. Later on it was
decided to publish the gazette on quarterly basis to cover the latest activities of PPRA in a
comprehensive manner thus the gazette was consequently re-named as PPRA Newsletter. The
Newsletter contains information about latest activities, performance in respect of monitoring,
tender advertisement on website, capacity building programmes and grievance redressal etc.
This Newsletter is shared with more than 250 public sector procuring agencies. During FY 2013-
14 & 2014-15 four (04) editions of PPRA gazette have been published on quarterly basis. The
newsletter has a positive impact on the performance of the Authority as well as on the
stakeholders.
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Authority in respect of anything in good faith done or intended to be done under this ordinance
or the rules and regulations made thereunder.
In the light of above legal provision, PPRA was not preparing para-wise
comments on the Writ petition filed in the court of Law nor attending hearing of the cases.
However after May, 2012 PPRA started submitting para-wise comments and report on all the
writ petitions where PPRA was made respondent. Simultaneously, it is also ensured that
hearings of all courts of law are attended. All above legal affairs handling was started when there
was acute shortage of officers and the Authority was functioning at its lowest ebb with just, one
Deputy Director and three (03) Assistant Directors.
A complete list of cases pertaining to court matters has been compiled. A list of
cases filed and heard in different courts of law pertaining to Public Procurement during the
year 201415 are summarized below: -
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Acronyms Used in the Text
ADB Asian Development Bank
PA Procuring Agencies
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