Public Financial Management Reform Program

ADB Grant 0133-CAM

22 June 2010

Agenda Introduction

Overview: Public ProcurementSeminar ObjectivesManagement of the SystemOversight, Accountability and Good Governance

International Best Practices: Public procurements under a fully-developed, well-functioning public procurement system - - Step-by-Step Procedures

Carrying out Procurements financed by the State budget, and under the direction of MEF and DPP (in the Khmer language) Procurement Sub-Decree No. 105 dated 18 October

2006

Carrying out Donor-Assisted Procurements under SOP/PMProcurement Sub-decree No. 14 dated 2007

Agenda (con’t)

Oversight, Accountability and Good Governance

Case Studies (time permitting)

Seminar Closing

Introduction and ObjectivesIn December 2004, the Royal Government

of Cambodia, through MEF, desired the establishment of an effective and efficient PFM system with a 10-year planning and implementation period.

As a part of these longer-term reforms, the PFM in Rural Ministries Project, financed by ADB Grant 0133-CAM, aims to strengthen the capabilities of procurement officials the three rural development ministries, MAFF, MRD and MOWRAM

Components: Grant ProgramComponent 1: Improve Public Financial

Management Capacity in Rural Development Ministries

Component 2: Strengthening Capacity for Internal Auditing

Component 3: Strengthening Debt Management

Component 4: Strengthening the Effectiveness of the National Audit Authority (NAA)

The Procurement Component of the Public Financial Management Reform Program (PFMRP) will support training and capacity building:

- In all procurement related matters under the deconcentrated procurement sub decrees for procurement under national budget in MAFF, MRD, and MOWRAM; and

- To assist MAFF, MRD and MOWRAM to ensure efficient functioning of their procurement system; raise awareness of the need to comply with SOP/PM procedures among senior officials of EA through workshops and seminars; and update the SOP/PM

PFMRP Objectives

Overview of Public Procurement

Public vs. Private Procurement

Management of the Public System

Oversight, Accountability and Good Governance

Public procurement is the use of public funds to acquire needed public goods and services

The primary objective of a fully-developed, well-functioning public procurement system is to acquire these goods and services at fair and reasonable prices. Social objectives; such as to ensure the growth and development of Cambodian suppliers, consultants and other service providers, are secondary objectives.

A system that consistently acquires needed public goods and services at fair and reasonable prices is one indicator that it is well-functioning and well-managed.

Another indicator is free and open competition among private sector firms who have confidence in the fairness and integrity of the system

Fraud, waste and abuse will be minimized

Oversight: supervision or watchful care

Accountability: liable or answerable.

Transparency: adhering to published rules

Good Governance: How Government uses a country’s resources for the public good

Oversight and accountability help to ensure “checks and balances” in the system:

Internal Audit: General Inspectorate

External Audit: Cambodia’s Supreme Audit Institution is the National Audit Authority (NAA)

Other checks and balances: Stakeholders

Cambodia’s Current Public Procurement System

As yet, the Royal Government of Cambodia does not have a deeply-rooted public procurement law

The regulatory framework consists of Sub-Decrees and Amendments, easily changeable

Procurements and Privately-financed Build-Own-Operate (BOT) Projects are grouped together

Accordingly, as one of the first steps to procurement reform, Cambodia may wish to consider expediting the legal and regulatory framework to facilitate the capacity building and institutional development initiatives being undertaken

Cambodia’s Procurement Regulatory Framework Procurement Sub-Decree No. 105 dated October 28, 2006; Procurement Sub Decree dated June 8, 1995; Procurement Sub-Decree No. 14 dated February 26, 2007; Implementing Rules and Regulations Governing Public Procurement

(IRRPP), amended on September 2, 1998; Draft Implementing Rules and Regulations on Public Procurement and

Procurement Manual for Goods, Works and Services (to be approved); Procurement Manuals for Externally Financed Projects/Programs in

Cambodia (Vols. 1-3) dated September 2005; Prakas No. 45 on the Implementation on Deconcentralization for Public

Procurement dated January 31, 2005; Instructive Circular on Procurement Planning Guidelines No. 12 dated

December 7, 2006 Supplementary Instructions of Prakas No. 319 on Rules and Regulations of

Public Procurement dated 31 August 1995

Effectively Three SystemsProcurements financed by the State BudgetDonor-Supported Procurements (SOP/PM)Independent Procurement Agent (IPA)

Significant capacity building needsProcurement officials are (or appear to be)

assigned routine administrative work, without decision-making authority (PRC)

Government not yet able to decentralize the procurement function due to capacity deficiencies

MEF awarded contract to Independent Procurement Authority (IPA) to carryout World Bank-financed procurements on behalf of the Government.

At some point in the near future, the ministries will be required to assume these IPA duties (approx 200 procurements/year)

PFM Reform Program: Roadmap of Procurement Assistance to Royal Government of Cambodia

Focused on 3 rural development ministries

Training and capacity building in all procurement related matters under the deconcentrated procurement sub

decrees for procurement under national budget and

within the scope of SOPs and PM

On-the-Job (OTJ) Training

Mentoring/Coaching: National and International Procurement Specialists will work directly with the three ministries to help “problem solve”

Specific objectives on the following slides

Strengthen capacity in procurement planning and monitoring and assisting in preparing the Annual Procurement Plan and the Project Procurement Plan;

Strengthen capacity to monitor and evaluate the performance of the public procurement system;

Clarify lines of accountability within the procurement process, including effective oversight guidelines and identify key internal controls in budget execution

Strengthen the capability to monitor and evaluate procurement progress and conformance procedures and in preparing regular procurement reports to MEF and other agencies;

Update databases on procurement status and use procurement website to post information on procurement processes and contract awards; and

Establish good practices to ensure efficient functioning of the PRCs.

Implementation Structure

Funding AgencyADB

Executing AgencyMinistry of Economy &

Finance

MRD MAFF MOWRAM

Department of Investment & Cooperation

PFM Committee

PFM Reform Secretariat

Economic & Finance Institute

ManilaBank Headquarters

Cambodian Resident Mission

PFM Working Group

PFM Working Group

PFM Working Group

CONSULTANTS

SUB- WORKING GROUPS PFM

International Best PracticesInternational Best Practices:

Step-by-Step Procedures

Following Slide Shows the 4 Cornerstones of a fully-developed, well-functioning system

Procurement Cornerstone #11. COMPETITION: The primary purpose of a fully-

developed, well-functioning public procurement system is to acquire needed public goods and services at fair and reasonable prices. This objective can most effectively be achieved through free and open competition. The first step to maximize free and open competition is through widely-circulated public advertising which opens-up and instills greater confidence in the procurement process, encourages more contractors to compete for government contracts, and results in overall lower tariffs for the benefit of the public and all users.

Procurement Cornerstone #22. TRANSPARENCY: Transparency enables

everyone to understand the Government’s objectives and the precise methods to be used to attain them. A transparent public procurement process requires (a) the "rules of the game" to be made available to all participants and (b) the "game" to be followed in accordance with those rules.

Procurement Cornerstone #33. FAIRNESS: Capable, responsible

contractors will compete for government contracts only if they have confidence in the fairness and integrity of the overall process; i.e., all participants are treated fairly and consistently over time and as between each other.

Procurement Cornerstone #4

ACCOUNTABILITY: Accountability is an essential element of good governance and ensures that the Government fulfills its fiduciary duty to the public in identifying, preparing, tendering and contracting for needed public goods and services.

Step-by-Step Procedures

The following charts graphically depict the step-by-step procedures for competitive tendering using international best practices.

FULL COMPETITIVE BIDDINGExecuting Agency Tasks Through Receipt of Bids

ExecutingAgency

Authorized to Proceed

with Procurement

Draft Pre-qualification Questionnaire

Executing Agency Prepares

Final Pre-qualification Questionnaire

Executing Agency

Prepares Draft Bid Document

Liaison with Associations

Liaison with Associations

Widely Advertise

Availability Prequalification Questionnaire

ProvidePrequalificatio

nsQuestionnaireSimultaneousl

yto all

RequestingContractors

Publicly-Available

List ofContractors Requesting

Pre-Qual Questionnaire

Contractors Qualified?

Notify Contractors that Did Not Pass Prequalification

Procedures

Shortlist of

Prequalified

Contractors

Publicly-AvailableList of

Contractors PassingPre-Qualifications

Issue Bid Document

Simultaneously to all Shortlisted Contractors

Executing Agencyto Conduct Pre-Bid

Meeting?

Bids Received

by Executing

Agency

Reasonable time for

Bidders to prepare bids

Yes

No

Pre-BidMeetingConduct

ed

Pre-Bid Conference

Minutes and/orBid

Amendment

Yes

Reasonable time for

Bidders to prepare bids

12 Step-by-Step Procedures

Please refer to the 30 page handout which describes the twelve (12) step-by-step procedures

The following slides describe the major procurement actions

STEP 1: Appoint a Procurement Committee STEP 2: Prepare a Bid DocumentSTEP 3: Draft Prequalification

QuestionnairesSTEP 4: Announce the Availability of an

Invitation to PrequalifySTEP 5: Prequalification ProceedingsSTEP 6: Shortlist of Prequalified Bidders

STEP 7: Disseminate the Bid Document to all Prequalified Bidders

STEP 8: Pre-Bid Meeting for all Shortlisted Bidders

STEP 9: Administratively Processing Proposals

STEP 10: Fairly and Impartially Evaluating Proposals

STEP 11: Ranking all Responsive BidsSTEP 12: Recommend a Proposed Contractor

State Budget-Financed Procurements

Carrying out Procurements financed by the State budget, and under the direction of MEF and DPP (in the Khmer language)

Procurement Sub-Decree 105 dated 18 October 2006

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karebIkÉksaredjéføedayRbkYtRbECgCalkçN³GnþrCati“dbG”karedj éføedayRbkYt RbECgkñúg Rsuk “dbs” karBieRKaHéfø “Bf” RtUveFVIeLIgPøam² eRkaykalbriecäTbBaÆb;karTTYl Éksaredjéfø nigRtUv eFVIeLIgCasaFarN³.

52

karebIkÉksaredjéføRtUveFVIkMNt;ehtu nigRtUvpþl;kMNt;ehtuenaHeGayRkum h‘unTaMgGs;Edl )andak;sMeNIsMuedjéføehIykMNt;ehtuenHk¾Gacpþl;eGayRKb;PaKIEdlesñIsMupgEdr . kMNt; ehtuebIkÉksaredjéføRtUv Etkt;Rtaya:gehacNas; eQµaH nigsBa¢atiGñkedjéføtMél dak;edjéføsuBlPaBÉksaredjéfø vtþmanGñkcUl rYmcMnYnR)ak;kk;edjéfø nigsuBlPaBR)ak; kk;Fanakaredjéfø.

53

CMBUkTI 3lT§kmµesvaTIRbwkSa

maRta 13

TIRbwkSaGaceRCIserIsykmkedIm,Ipþl;nUvesvaÉkeTskñúgkarGnuvtþn¾KMerag b¤kic©snüa sMxan;² b¤mYypþl;CMnYy b¤eyabl;CMnaj kñúgkargarBRgwgsßab½n b¤smtßPaB, TIRbwkSaGacCaRkum h‘un TIRbwkSa b¤CaÉktþCn.

maRta 14nItiviFIkñúgkareRCIserIs nigkarvaytMélRkumh‘unTIRbwkSa nwgkMNt;kñúg Gvbls ehIynItiviFITaMg enHcaM)ac;RtUvGnuvtþsMrab;RKb;krNI. KMrUÉksaredjéfø nigTMrg;kic©snüanwgRtUvkMNt;kñúg ]bsm<½n§én Gvbls. ÉksarKMrUTaMgGs;enH RtUveRbIR)as;enAkñúgRKb;krNITaMgGs;.

54

maRta 15kareRCIserIsRkumh‘unTIRbwkSa

RtUveFVIkarpSBVpSayCasaFarN³ edIm,I eGayRkumh‘unTI RbwkSananacUlrUmdak;cMNab;GarmµN¾ nig bBa¢ak;BIcMNab; GarmµN¾kñúgkarbMeBjkargar. kñúgkrNI tMél)a:n;saµnénesvaTIRbwkSax<s;Cag kMritTwkR)ak;Edl)ankMNt;kñúg Gvbls karpSBVpSay eRCIsersIRkumh‘un TIRbwkSa RtUveFVIeLIgCaPasaExµr nigPasarGnþrCatiEdlBak;B½n§nwgkargarenaH

55

maRta 16 kareRCIserIsTIRbwkSaÉktþCn RtUveFVIeLIgedayEp¥kelImUldæanénlkçN³sm,tþi nigbT BiesaFn¾ rbs;ÉktþCnTak;TgnwgTIkEnøgkargarEdlFaøb;)anbMeBj. karGeBa©IjeGaydak;cMNab;GarmµN¾RtUvpSBVpSayCasaFarN³TUTaMgRbeTs ehIyenAeBltMél )a:n;sµanénkargarRtUvbMeBjelIsBIkMritTwkR)ak;Edl)ankMNt;kñúg GvblsenaHkarpSBVpSay eRCIserIsTIRbwkSaÉktþCn RtUveFVIeLIgCaPasaExµr nigPasaGnþrCati Ep¥ktamTMhM kargarRtUv bMeBjTIRbwkSaÉktþCn nwgRtUv)an eRCIserIsedayEp¥kelIlkçN³vinicä½yEdl)anEcgkñúglixit GeBa¢Ijdak;cMNab;GarmµN¾ nigkarGeBa¢IjeGaycUlrYm eFVIkar crcaedIm,IcuHkic©snüaCamYy sßab½nGnuvtþlT§kmµ.

56

CMBUkTI 4sßab½nRKb;RKglT§kmµsaFarN³maRta 17RksYgesdækic© nighirBaØvtßú Ca “saßb½nRKb;RKglT§kmµsaFarN³”.RksYgesdækic© nig hirBaØ vtßúkMNt;kMritTwkR)ak;sMrab;Gnuvtþþ viFIsaRsþénlT§kmµ erobcMeKalneya)ayénlT§kmµ nignItiviFI lMGiténlT§kmµ sMrab;GnuvtþRsbeTAtambTb,BaØtþiEdl manRsab;nigGnuvtþ GMNacdéTeTot tamkarcaM)ac;edIm,IFanaeGaymuxgar nigkarGnuvtþdMeNIrkar)anl¥.

maRta 18RksYgesdækic© nighirBaØvtßú manParkic©eFVIkarEklMG nigbMeBjbEnßmelIviFannigbTb,BaØtþisþIBI lT§kmµsaFarN³ “Gvbls”ral;karEklMG b¤karbMeBjbEnßm RtUveFVIeLigedayRbkas b¤saracrENnaM.

57

maRta 19RsbtamGnuRkwtüelx 04 GnRk>bk cuHéf¶TI 20 Ex mkra qñaM 2000 sþIBIkarerobcM nigkarRbRBwtþ eTArbs;RksYgesdækic© nighirBaØvtßú naykdæanlT§kmµsaFarN³ CaesnaFikareGayRksYgesdækic© nighirBaØvtßú elIkargarRKb;RKglT§kmµsaFarN³enAtambNþa RksYgsßab½n extþ Rkug XMu sgáat; shRKassaFarN³ nigRKwHsaßnsaFarN³redæ)alTaMgGs; kñúgRBHraCaNacRk km<úCaedayminKitBIRbPBmUlniFi.

58

CMBUkTI 5karTTYlxusRtUvrbs;sßab½nGnu

vtþlT§kmµmaRta 20karTTYlxuRtUvkñúgkarGnuvtþGnuRkwtüenH k¾dUcCa GvblsCabnÞúkrbs;RbFansßab½nGnuvtþlT§ kmµRbFansßabn½GnuvtþlT§kmµmanParkic©RKb;RKgnigRtYtBinitüCaRbcaMral;kic©lT§kmµrbs;sßab½nxøÜn.

maRta 21sßab½nGnuvtþlT§kmµnImYy² RtUvbegáItGgÁPaBlT§kmµ “Gl” Edlmanfañk;esµIkariyal½yedIm,I sMrYl karGnuvtþkic©lT§kmµeGay)aneBj elj nigTTYlra:b;rgelIral;kic©lT§§kmµTaMgGs;enAkñúg sßab½nrbs;xøÜn. tYnaTIlMGit karTTYlxusRtUv nigkarEtgtaMg b¤pøas;bþÚr RbFan GgÁPaB lT§kmµ nwg kMNt;kñúg Gvbls. RbFan GgÁPaBlT§kmµ nigsmaCikrbs;xøÜnminRtUvkan;muxgarepSgeTotenAkñúg sßab½n b¤RksYg ehIyRtUvbMerIkargar eBjema:gsMrab;GgÁPaBlT§kmµ.

59

maRta 22

saßb½nGnuvtþlT§kmµ RtUveFVIEpnkarlT§kmµRbcaMqñaMrbs;xøÜn edIm,Idak;CUnRksYgesdækic© nighirBaØvtßú Binitü nigGnum½t enAedImqñaMsareBIB½n§nImYy². ral;KMeragcMNayEdl RtUvGnuvtþviFIsaRsþlT§kmµsaFarN³ RtUvkt;bBa©ÚlkñúgEpnkarlT§kmµ. karerobcMEpnkarlT§kmµ RtUvEp¥ktamTMrg;EdlnwgkMNt;kñúg Gvbls. kñúgkrNIcaM)ac; EpnkarlT§kmµGacEktMrUv enAqmas TI2 énqñaMsareBIBn§nImYy². saßb½nGnuvtþlT§kmµRtUv Gnuvtþkic©lT§kmµeGay)an eTogTat;tamkmµviFIEdl)ankMNt;kñúgEpnkarlT§kmµ.

60

maRta 23

sßab½nGnuvtþlT§kmµRtUvepJIr)aykarN¾lT§kmµRbcaMExmkRksYgesdækic©nighirBaØvtßúGMBI Tinñn½yénkic©snüaTaMgGs; rYmTaMgkargarvishmCÆkarlT§kmµ tamKMrUrbs;RksYgesdækic© nig hirBaØvtßú pþl;eGay. kñúgkrNI Gak;xanmin)anbBa¢ÚnTinñn½yRKb;RKan;eTRksYgesdækic© nig hirBØavtßú niwgmanviFankarkdak; vin½ytam karCak;Esþg.

sßab½nGnuvtþlT§kmµTaMgGs;EdleRbImUlniFisaFarN³RtUvrkSaTukr)aykarN¾lT§kmµEdlnwgkMNt;kñúg Gvbls. ehIyr)aykarN¾TaMgenaHRtUvpþl;nigGnuBaØatieGayeFVIkarRtYtBinitü edayminmankarlak;)aMg enAeBlGaCaJFrmansmtßkic©esñIsuM.

61

CMBUkTI 6KN³kmµaFikarkMNt;buerlkçN³sm,tþivaytMél nigRbKl;kic©snüa “Kbvb”

maRta 24RKb;sßab½nGnuvtþlT§kmµ

RtUvbegáItKN³kmµaFikarkMNt;buerlkçN³sm,tþi vaytMél nigRbKl;kic©snüa “Kbvb” mYyEdlTTYlxusRtUvRtYtBinitüelIEpnkarlT§kmµÉksardjéføkar pþl;Gnusasn¾edIm,IRbKl;kic©snüa karGnuvtþkic©snüa nigpþl;Gnusasn¾bNþwgtva:. karerobcMbegáItKN³kmµakarlT§kmµ sMrab; XMu sgáat; nwgkMNt;edayELkkñúg Gvbls.

62

maRta 25smaCik Kbvb

EdlRtUvEtgtaMgedayRbFansßab½nmanGNtþikargarry³eBl 2qañM. GNtþienH Gacbnþ)anry³eBl1 qñaMeTot b:uEnþmineGayelIsry³eBlsrub 3qñaMeLIy. smaCik Kbvb Edl)anbMerIkargarry³eBl 3qñaMehIyenaH GacRtUvEtgtaMgeLIgvij)aneRkayBIry³eBl ya:gticbMput 1qñaM bnÞab;BI)anbBa©b;ry³eBl 3qñaMCa smaCIkrbs; Kbvb.

smaCik Kbvb EdlRtUvEtgtaMgedayRbFansßab½nGnuvtþlT§kmµRtUvmancMnYnBI 4 eTA 6 nak;bEnßmelIRbFan nigGnuRbFan Kbvb Edl)ancat;taMgtammaRta 26 énGnuRkwtüenHehIykñúg enaHRtUvmanya:gehacNas;smaCikmñak;manCMnajhirBaØvtßúnigsmaCikmñak;eTotmanCMnajbec©k eTs dUcCa visVkrCaedIm. RbFansßab½nGnuvtþlT§kmµGaccat;taMgsmaCiklT§kmµbeNþaHGasnñ sMrab;GnuvtþlT§kmµBiessNamYy EdlRtUvcaM)ac;nUvCMnaj nig cMeNHdwgBiess. smaCikbeNþaH GasnñRtUvrMsayedaysV½yRbvtþieRkaykic©lT§kmµBiess)anbBa©b;. naykdæanlT§kmµsaFarN³ nwgRtUv)ansaßb½nGnuvtþlT§kmµGeBa¢IjeGaycUlrYm nigmansiT§cUlrYmRKb;karBiPakSarbs; KbvbCaGñksegátkarN¾ nwgkMNt;kñúg Gvbls.

63

maRta 26

KbvbRtUvmansmaCikGciéRnþy¾.RbFanGgÁPaBlT§kmµ“Gl”RtUveFVICaelxaFikarrbs; Kbvb siT§dwknaMrbs; Kbvb RtUvmanRbFanmYyrUb GnuRbFanTI1 mYyrUb nigGnuRbFanTI2 mYyrUb. siT§dwknaM rbs; Kbvb RtUvERbRbYltamkMriténtMélkic©lT§kmµEdlnwgkMNt;kñúg Gvbls, siT§idwknaM Kbvb RtUv)ankMNt;tamkMrit dUcxageRkam³-lT§kmµkMritx<s; ³ dwknaMedayRbFan Kbvb CaRbFansßab½n-lT§kmµkMritmFüm ³ dwknaMedayGnuRbFanTi 1 Kbvb- lT§kmµkMritTab ³ dwknaMedayGnuRbFanTI 2 Kbvb

GnuRbFanTI 1 nigGnuRbFanTI 2 Kbvb RtUv)anEtgtaMgedayRbFansßab½n nigRtUv)anRbKl;siT§eBjeljeGayeFVICaEpñkmYyrbs; Kbvb kñúgkarGnum½tyl; RBmelIr)ayN¾ vaytMél nigcuHkic©snüa.

64

maRta 27Kbvb manParkic©RtYtBinitüelIskmµPaBlT§kmµ

mansiT§yl;RBmelIr)aykarN¾ vaytMélnig erobcM cuHkic©snüatamnItiviFI eTAtamkMritTwkR)ak;EdlnwgkMNt;kñúg Gvbls, Kbvb RtUveFVIkarsMercCa ÉkcänÞ cMeBaHr)aykarN¾vaytMél nigkarpþl;Gnusasn¾ edIm,IRbKl;kic©snüa.

GnuRbFanTI 1 nigGnuRbFanTI 2 KbvbRtUv)anpþl;siT§iedIm,IcuHhtßelxakñúgnamsßab½n edaymincaM)ac;mankaryl;RBmelIkic©lT§kmµehIyenaHmintMrUveGaymankar yl;RBmbEnßmBI sßab½nNaeTot eLIy elIkElgEtcMeBaHkrNIdUcxageRkam³-kic©snüaelIskMritTwkR)ak; EdlnwgkMNt;kñúg Gvbls RtUvbBa¢ÚnmkRksYgesdækic© nighirBaØvtßú edIm,IBinitü nigsMerc.- kic©snüaelIskMritTwkR)ak;EdlnwgkMNt;kñúgGvblsehIyCaKMeragEdlmanlkçN³b:HBal;RsYc Rsal dl;neya)ay b¤man\T§iBlxaøMgdl;sgÁm b¤sIlFm’ b¤GacbgáeRKaHfñak;dl;brisßanRtUvbBa¢Ún eTA TIsþIkar KN³rdæmRnþI tamry³RksYgesdækic© nighirBaØvtßú edIm,IBinitü nigsMerc.

65

CMBUkTI 7tRmUvkarcaM)ac;sMrab;kic©lT§kmµ

maRta 28RKb;lT§kmµTMnij sMNg; esvakmµ

nigesvaTIRbwkSaTaMgGs; RtUvEteFVIkarpSBVpSayCasa FarN³ elIkElgEtkarsÞg;tMélniglT§kmµEdlGnuvtþtamviFIsaRsþ edayELk dUcmanEcgenA kñúgmaRta 6 énGnuRkwtüenH.

GñkedjéføTaMgGs; mintMrUveGayeFVIkarcuHbBa¢IeFVIcMNat;RbePT nigcMNat;fañk;Rkumh‘un edIm,IsiT§eBj elj kñúgkar CavÉksaredjéfø b¤sMeNIsMudak;edjéfø elIkElgEtGñkTTYlkarsag sg;elIKMerag cMNayEdleRbIR)as; fvikarCati RtUvGnuvtþtambBaØtþiénmaRta29 énGnuRkwtüenH.

66

maRta 29

edIm,ImansiT§icUlrYmenAkñúgKMeragkargarsaFarN³GñkTTYlkarsagsg;RtUvEtcuHeQµaH kñúgbB¢aIeFVIcMNat;RbePT nigcMNat;fañk;Rkumh‘unedayeyagelIRbePTKMeragEdlGñkTTYlkarsag sg;mansmtßPaBRKb;RKan;kñúgkarbMeBj. kareFVIcMNat;RbePT nigcMNat;fñak;Rkumh‘un nwgRtUveFVI eLIgedayKN³kmµaFikarmYyEdlmantMNagnaykdæanlT§kmµsaFarN³eFVICaRbFantMNagRksYg erobcMEdndInKrUbnIykmµ nig sMNg; nig tMNag]sSahkmµsMNg;kñúgRsukeFVICasmaCiknwgRtUvcat; ;taMgeLIgedayrdæmRnþIRksYgesdækic© nighirBaØvtßú. Rkumbec©keTsmYyGacRtUv)anbegáItenAral;eBleFVIkarvaytMélelIBaküesñIsMueFVIcMNat;RbePT nig cMNat;fañk;Rkumh‘un.

karENnaMlMGit sMrab;kareFVIcMNat;RbePT nigcMNat;fañk;Rkumh‘un sMrab;GñkTTYlkar sagsg;nwgkMNt;kñúg Gvbls nwgRtUvpSBVpSayCasaFarN³.

67

maRta 30

manEtÉksaredjéføedayRbkYtRbECgCalkçN³GnþrCati “dbG” nigkaredjéfø edayRbkYtRbECg Rsuk “dbs” b:ueNÑaH EdlnwgRtUvlk;eGayGñkedjéfø. ÉksarlT§kmµepSg eTotRtUvEckCUnedayminKitéfø. tMéllk;Éksaredjéfø RtUvsißtenAeRkamkarENnaMEdlnwg kMNt;kñúg Gvbls.

68

maRta 31RKb;Éksaredjéfø edayRbkYtRbECgvCalkçN³GnþrCati “dbG”

karedjéføeday RbkYtRbECgkñúgRsuk “dbs” nigÉksarbuerlkçN³sm,tþiRtUverobcMeGTayrYceRsc)ac;sMrab;lk; nwgpþl;eGayGñkcUlrYmedjéfø)anTan;eBlevla nigesµIPaB. karBnüary³eBlpSBVpSay RtUv)an kMNt;eLIgvijcMeBaHehtuplsmRsbNamYyEdlbNaþleGayyWty:avkñúgkarerobcMÉksaredjéfø. saßb½nGnuvtþlT§kmµRtUveFVIkarBnüakalbriecäTsMrab;TTYlÉksaredjéføb¤ÉksarbuerlkçN³ sm,tþi edIm,ITukeBlRKb;RKan;eGayGñkedjéføerobcMÉksar)anTan;eBl.

eBlevlaRKb;RKan;nwgkMNt;kñúg Gvbls edIm,ICYyeGayGñkedjéfø niwgTIRbwkSaTaMgGs; erobcMÉksar niwgdak;sMeNIedjéfø.

69

maRta 32ral;karR)aRs½yTak;TgCamYyGñkedjéfø

enAkñúgGMLúgeBlkMBugdMeNIrkaredjéfø kar vaytMél niwgkarerobcMeFVIkic©snüaRtUveFVIeLIgCalaylkçN¾GkSr ehIykñúgkrNícrcaéføRtUvman kMNt;ehtuénkarcrcaéfø EdlRtUvcuHhtßelxa edayPaKITaMgBIr.maRta 33

KµanGñkedjéføNamYyRtUv)anGnuBaØatieGaydwg b¤)anTTYlBt’manGMBIlT§pl énkaredjéføCapøÚvkareLIy kñúgxN³EdlBt’man minTan;)anRbkasCasaFarN³.

70

maRta 34RKb;sMeNIedjéfø niwgsMeNIeRCIserIsTIRbwkSaTaMgGs;

¬TaMgbec©keTs nighirBaØvtßú¦ RtUvEterobcMebIk CasaFarN³ ehIykMNt;ehtuRtUvpþl;eGayRkumh‘un nigbuKÁlEdl)ancUlrYm TaMgGs;. kMNt;ehtuRtUvbiT nig RbkaselIbBa¢rBt’manenAsßab½nGnuvtþlT§kmµ EdlsaFarNCnTU eTAGacemIleXIj cab;BIeRkayéf¶ebIk Éksaredjéfø b¤ebIksMeNIsMuedjéfø b¤bnÞab;BIkarRbKl; kic©snüasMrab;mYyry³eBlya:gxøI EdlnwgkMNt;kñg Gvbls. kMNt;kehtuftcMlgk¾Gacpþl; eGaysaFarNCnNaEdl)andak;BaküesñIsMu.maRta 35

Kµankic©snüaNamYynwgRtUv)anRbKl;CUnedayEp¥kelIlkçN³vinicä½yEdlmin)anbB¢aÚleTAkñúgÉksar edjéfø TaMgc,ab;edImb¤ÉksarEkERbkñúgÉksaredjéfø nigsMeNIeGaydak;edjéfø b¤ karGeBa¢IjeGaydak;cMNab; GarmµN¾sMrab;TIRbwkSaÉktþCn. 71

maRta 36r)aykarN¾vaytMélRbKl;kic©snüanImYy²

RtUvrkSaTukCaÉksarenAsßab½n Gnuvtþ lT§kmµ. r)aykarN¾vaytMél RtUvEteKarBtamKMrYsþg;dar EdlnwgkMNt;kñúg Gvbls. esckþIsegçbGMBIlT§plénkarvaytMél RbKl;kic©snüa RtUvbiTRbkaselIbBa¢rBt’man b¤dak;kñúgeKhTMB½rRbsiinebImanenAsßabn½GnuvtþlT§kmµEdl saFarNCnTUeTAGacemIleXIj cab;BIeRkay éf¶ebIkÉksaredjéfø b¤ebIksMeNIrsMuedjéfø b¤bnÞab;BIkarRbKl;kic©snüasMrab;mYyry³eBlya:gxøI EdlnwgkMNt;kñúg Gvbls ehIyesckþIsegçbkMNt;ehtuenaHk¾RtUvpþl;eGaypgEdr cMeBaHRkumh‘un nigbuKÁlEdl)ancUlrYmedjéføTaMgGs;EdlesñIsMu.

72

maRta 37smaCikTaMgGs;rbs;GgÁPaBlT§kmµ “Gl” KN³kmµaFikarkMNt;buerlkçN³sm,tþi vaytMél nigRbKl;kic©snüa “Kbvb”mRnþInaykdæanlT§kmµsaFarN³ GñkedjéføRtUvhtßelxaelIesckþIRbkassþIBIRkmsIlFm’ viCa¢CIv³ EdlnwgkMNt;kñúg Gvbls. smaCikrbs;GgÁPaB lT§kmµmRnþInaykdæanlT§kmµ saFarN³ RtUvcuHhtßelxaelIesckþIRbkasenH Caerogra;lqñaM. GñkedjéføRtUvcuHhtßelxaerogral;eBlEdldak;BaküsuMedjéfø ehIy Kbvb k¾RtUvcuHhtßelxaelIesckþIRbkasenHpgEdr enAral;eBlyl;RBmelIr)aykarN¾vaytMél.

73

CMBUkTI 8karbþwgtva:

nwgkarRtYtBinitükic©lT§kmµmaRta 38

Gñkedjéfø b¤TIRbwkSamansiT§dak;BakübWþgtva:CalaylkçN¾GkSrenARKb;dMNak;kalén dMeNIrkareFVIlT§kmµ. Bakübþwgtva:enHRtUvdak;CUnsamIsßab½nGnuvtþlT§kmµedaybMeBjeQµaH nigcuH htßelxaelIBakü bþwgtva:ehIyRtUvcMlgbNþwgenH bBa¢ÚneTARksYgesdækic© nighirBaØvtßú sßab½nGnuvtþ lT§kmµRtUveFVIkarBinitü Bakübþwg nigpþl;cMelIykñúgry³eBl 15éf¶énéf¶ eFVIkarKitBIéf¶TTYlBakü bwþgtva:.

RbsinebIBakübwþgtva:RtUv)aneFVIeLIg kñúgGMLúgeBlvaytMélRbKl;kic©snüa samIsßab½n GnuvtþlT§kmµRtUveqøIyeTAnwgkartva:Paøm² bnÞab;BIkarRbKl;kic©snüarYcehIy. lixiteqøIytbenH RtUvcMlgCUnRksYgesdækic© nighirBØavtßúmYyc,ab;.

74

Gñkedjéfø b¤TIRbwkSa EdlmineBjcitþnigcMelIyrbs;sßab½nGnuvtþlT§kmµ mansiT§bwþg bnþEfmkñúgry³eBl 15éf¶ énéf¶eFVIkarKitBIéf¶Edlsaßb½nGnuvtþlT§kmµ)an pþl;cMelIy nigsMueGayRksYgesdækic© nighirBaØvtßúeFVIkarBinitüeLIgvijelIesckþIrbs; sßab½nGnuvtþ lT§kmµ.

RksYgesdækic© nighirBØavtßú RtUvpþl;cMelIy kñúgry³eBlv 15éf¶ éneFVIkar KitBIéf¶)anTTYlBakübwþgtva:. maRta 40

esckþIsMercrbs;RksYgesdækic© nighirBaØvtßú cMeBaHbNþwgtva: CaesckþIesMerc cugeRkay. b:uEnþesckþIsMercenH GacCakmµvtßúénbNþwgtva:eTAtulakar)an kñúgry³eBl 30éf¶ énéf¶eFVIkar KitBIéf¶ecjesckþIsMerc.

75

maRta 41RKb;saßb½nGnuvtþlT§kmµ Gñkedjéfø

GñkpÁt;pÁg; GñkTTYlkarsagsg; nwgTIRbwkSa enAeRkamkic©snüahirBaØb,TansaFarN³ RtUvRbkan;x¢ab;nUvRkmsIlFm’viCa¢CIv³x<s;bMput enAkñugGMLúgeBleRCIserIs nigkarGnuvtþkic©snüa.

raCrdæaPi)almansiT§eFVIGFikarkic© nigBinitüeLIgvijelIÉksarEdlCab;Bak;B½n§nwgkar edjéfø sMeNI sMuedjéfø nigkic©snüarbs;Gñkedjéfø GñkTTYlkarGñkpÁt;pÁg; nigTIRbwkSaTaMgGs;.

76

CMBUkTI 9eTasb,BaØtþi

maRta 42

buKÁlTaMgGs;EdlBak;B½n§nwgdMeNIrkarlT§kmµRtUvraykarN¾eTAKN³kmµaFikarkMNt;buerlkçN³sm,tþi vaytMél nigRbKl;kic©snüa “Kbvb” rbs;sßab½nGnuvtþlT§kmµb¤sßab½nman smtß kic©epSgeTot enAeBlEdlmanPsþútagc,as;las;EdlCamUldæannaMeGaymankarsgS½yfamanGMeBI BukrlYy GMeBIbnøM GMeBIXubXit nigGMeBIbgçitbgçM.

enAkñúgn½yénGnuRkwtüenH GMeBIBukrlYy GMeBIbnøM GMeBIXubXit nigGMeBIbgçitbgçM kñúgkic©lT§kmµsaFarN³ RtUv)ankMNt;dUcxageRkam³-“GMeBIBukrlYy” sMedAdl;karsUk b¤karTTYlvtßúmantMél edIm,IeFVIeGayman\T§iBlelI skmµ PaBmRnþIsaFarN³enAkñúgdMeNIrkareRCIserIsRbKl;kic©snüa b¤enAkñúgkarGnuvtþ kic©snüa.- “GMeBIbnøM” sMedAdl;karbkRsaybMéPøehtukarN¾ edIm,IeGayman\T§BlelIdMeNIrkareRCIserIs RbKl;kic©snüa b¤karGnuvtþkic©snüaeFVI

77

eGayxUcxacRbeyaCn¾rbs;raCrdæaPi)al nigrYmCamYyGMeBIXubXitkñúgcMeNamGñkedjéfø ¬mun b¤eRkayeBldak;sMeNIsMuedjéfø¦ edIm,IerobcMbegáIttMéledjéføsib,nimµitbegáItkMrit minEmnCa lkçN³RbkYtRbECg eFVIeGayxUcRbeyaCn¾rbs;raCrdæaPi)al kñúgn½yminEmnCalkçN³RbkYtRbECg edaycMh nigesrI.-“:GMeBIXubXit” sMedAdl;Epnkar b¤karerobcMrvagGñkedjéføBIr b¤eRcInnak; EdlerobcMeLIg edIm,IbegáIttMéledjéføsib,nimµit begáIttMélkMritminRbkYtRbECg b¤edIm,IeFVIeGayman\T§iBlelIs skmµPaBrbs; PaKINamYyenAkñúgdMeNIrkaredjéfø b¤CH\T§iBlelIkarGnuvtþkic©snüa.-“: GMeBIbgçitbgçM” sMedAdl;karhamXat; b¤karKMramkMEhgedaypÞal; b¤edayRbeyal eFVIeGay maneRKaHfañk;dl;buKÁl b¤RTBüsm,tþirbs;enHedIm,IeFVIeGayman\T§Bl kñúgkarcUlrYmkñúgdMeNIrkar lT§kmµrbs;buKÁlenH b¤eFVIeGaymankarCH\T§iBlelIkarGnuvtþkic©snüa.

78

maRta 43

enAeBlsßab½nGnuvtþlT§kmµxkxankñúgkarpþl;r)aykarN¾sþIBIskmµPaBlT§kmµEdlnwg kMNt;kñúg Gvbls b¤lT§plénkarRtYtBinItüelIBakübNþwgbgðajfasßab½nGnuvtþlT§kmµmin)an GnuvtþRtwmRtUvtam viFIsaRsþ nignItiviFIénlT§kmµ b¤manJPsþútagbgðajfa manGMeBIBukrlYy GMeBIbgøM GMeBIXubXit nigGMeBIbgçitbgçM RksYgesdækic© nighirBaØvtßú mansiT§tMrUveGaysaßbn½GnuvtþlT§kmµenaH dak;CUnesckþIRBagkic©snüaTaMgGs; edayminKitBIkMritTwkR)ak; Edl)ankMNt;edayRksYgesdækic© nighirBaØvtßú edIm,IeFVIkarRtYtBinitü nigsMerccugeRkay.maRta 44

enAeBlEdlmRnþIraCkarNamñak;enAkñúgkarGn uvtþkic©lT§kmµ RtUv)anrkeXIjfaman Bak;B½n§nwgGMeBIBukrlYy GMBIekgbnøM GMeBIXubXit nigGMeBIbgçitbgçM buKÁlenaH GacRtUvTTYlTNÐkmµ vin½yEpñkrdæ)al. TNÐkmµ vin½yEpñkrdæ)alenH minEmnCa]bsKÁdl;dMeNIrkarénkarecaTRbkan;nig pþnÞaeTasedayeyagtamc,ab;CaFrmaneLIy.

79

maRta 45enAeBlEdlGñkedjéføGñkTTYlkar GñkpÁt;pÁg;

Rkumh‘unTIRbwkSa b¤TIRbwkSaÉktþCn RtUv)anrkeXIjfa manBak;B½n§kñúgGMeBIBukrlYy GMeBIekgbnøM GMeBIbgçitbgçM nigGMeBIXubXitKña rdæmRnþIRksYgesdækic© nighirBaØvtßú Gac sMerchamXat;Rkumh‘un b¤buKÁlTaMgenaHmineGaycUl rYmkñúgkarpÁt;pÁg; TMnij sMNg; esvakmµ CaGciéRnþy¾ b¤kñúgry³eBlminticCagbIqñaM. karhamXat;enH minEmnCa]bsKÁdl;dMeNIrkarénkarecaTRbkan; nigpÞnaÞeTas edayeyageTAtam c,ab;CaFr maneLIy.

80

CMBUkTI 10Gvsanb,BaØtþi

maRta 46bTb,BaØtþiTaMgLayNa EdlpÞúynwgGnuRkwtüenH

RtUvcat;TukCanirakrN¾.maRta 47

rdæmRnþITTYlbnÞúkTIsþþIkarKN³rdæmRnþI rdæmRnþIRksYgesdækic© nighirBaØvtßúrdæmRnþIRKb;RksYg saßb½n rdæelxaFikar RKb;rdæelxaFikardaæn GPi)alRKb;extþ Rkug RbFanshRKassaFarN³RtUvTTYl GnuvtþGnuRkwtüenH tamParkic©erog²xøÜn cab;BIéf¶cuHhtßelxateTA.BakübMeBj nigGkSrkat; énGnuRkwtüsþIBIlT§kmµsaFarN³-Gvbls³ karGnuvtþviFan nigbTb,BaØtiþ sþIBIlT§kmµsaFarN³- IRRPP: Implementing Rules and Regulations Governing Public Procurement

- Kbvb³ KN³kmµaFikarkMNt;buerlkçN³sm,tþi vaytMél nigRbKl;kic©snüa- PEAC: Pre Qualification, Evaluation and Award Committee

81

- Gl³ GgÁPaBlTÁkmµ- PU: Procurement Unit

- sl³ sßab½nGnuvtþlT§kmµ- PE: Procuring Entity

- dbG³ karedjéføedayRbkYtRbECgCalkçN³GnþrCati- ICB: International Competitive Bidding

- dbs³ karedjéføedayRbkYtRbECgkñúgRsuk- NCB: National Competitive Bidding

- Bf³ karBieRKaHéfø- Sh: Shopping

- st³ karsÞg;tMél- Ca: Canvassing

- kp³ karcuHkic©snüa- DCo: Direct Contracting

- kGC³ karcuHkic©snüaCamYyGgÁPaBCMnajénsaßbn½GnuvtþlT§kmµ

- FA: Force Account

- lPs³ lT§kmµPaKkmµshKmn¾- CPP: Community Participation in Procurement 82

Donor-Assisted ProcurementsDonor-Assisted Procurements Carried

Out Under SOP/PM Procedures

Procurement Sub-decree No. 14 dated 2007 disseminating:

- Standard Operating Procedures (SOP)- Procurement Manuals (PM)

The Procurement Manual

Policies and procedures for the procurement of goods, works, and consulting services

For Externally Financed Projects / Programs in Cambodia

84

Project Cycle

85

Evaluation 61

Identification

2Preparation

3 Appraisal

4 Loan/Grant Negotiation & Board Approval

5Implementation

PFMRP Procurement Plan

The Procurement must be carried out using the following procurement methods

1. International Competitive Bidding (ICB)2. National Competitive Bidding (NCB)3. National and International Shopping (NSH &

IS)4. Selection based on Consultants Qualifications

(CQS)

This training material for the PFMRD project will focus on the above procurement methods

86

Economy and Efficiency

Suitability of the goods/equipment/services purchased.

The useful life.Operating, maintenance and servicing

costs.Availability of after sales service The delivery period.Onward transportation costs.Storage costs.The time taken to procure the goods

87

Equity

Eligible suppliers provided equal opportunities

Ensure equitable grounds for competition A fair basis on which to compete

88

Ethical StandardsCode of Business Ethics

No individual shall use his authority or office for personal gain

An individual shall seek to maintain and enhance the reputation of the Government

Conflict of interests & personal relationshipsConfidentiality and accuracy of information All shall be treated with fairness and

impartiality No business gifts will be accepted A moral and ethical responsibility to report

any unethical conduct

89

Fraud and Corruption“corrupt practice” “fraudulent practice” “collusive practices” “coercive practice”The ADB will cancel the portion of the

Grant/Loan allocated to the contract Declare a consultant or firm ineligible Permit the Government and the WB to

inspect accounts and records

90

Conflicts of InterestDeclare any potential conflicts of interest Bidders and consultants with potential

conflict of interest are not eligible Firms hired for project design, and

implementation are not eligible to provide goods, works or services

91

Transparency in the Procurement Process

The general procurement notice Specific procurement notices UN Development Business on line Development Gateway’s dg Market News Paper of national circulation (The above requirements are mandatory for all

ICB contracts)

92

Procurement Roles and ResponsibilitiesManual on Standard Operating Procedures

for Foreign Assisted Projects MEF will undertake an oversight roleMEF representative on the Procurement

CommitteeFor EAs as provided in the project/grant

agreement Financial limits at which decisions can be

determined at the start of each project

93

Project Management Units

A Project Management Unit (PMU) with the delegated authority to implement the project

The PMU acts as the focal point for project implementation

It undertakes all of the core procurement activities required for the project

94

Procurement Responsibilities Project Director

Approves and signs contracts, invoices and important procurement documents

A member of the procurement committeeOverall responsibility for ensuring that the

ADB and the Government’s Procurement Guidelines are followed

Ensures that all mandatory reports are issued on time

95

Procurement Responsibilities/ …Cont.Project Manager

Approves and signs contracts, invoices and procurement documents below an agreed threshold

A member of procurement committeeThe primary contact for all formal

communications relating to procurement Ensures that all procurement monitoring

and reporting is undertaken in a timely and efficient manner

Leads all negotiations Chairs and supervises all bid openings

96

Procurement Responsibilities/ …ContSenior Administrative Officer

Assists the Procurement Officer to draft the overall project procurement plan

Assists the Procurement Officer in the monthly updating of the overall project procurement plan

97

Procurement Responsibilities/ …Cont

Chief Financial Officer Supervises the management of all

financial transactions and payments As a member of the procurement

committee, undertakes financial pre or post qualification review

Attends bid openings, verifies and records the bid securities that may be required

Receives and arranges for the safe keeping of all bid securities

98

Procurement Responsibilities/ …Cont.

Technical Officer Drafting, or supervising the drafting of, all

specifications, scopes of work and terms of reference

Assisting the Procurement Officer in selecting the appropriate evaluative criteria, special conditions of contract and contractual performance indicators

Manage and administer the implementation of contracts

Monitors and evaluates progress and performance of technical staff, consultants, and contractors

99

Procurement Responsibilities/ …ContProcurement Officer

Drafting and updating the project’s general procurement notice (GPN)

Quantify the goods works and services required Group the goods works and services required

into packages Preparing the overall project procurement plan Update the overall project procurement plan

each month Drafting specific bidding documents Prepare and issue through the Project Manager

Specific Procurement noticesSubmit the documents through the Project

Manager to the WB

100

Procurement Responsibilities/..Cont.Procurement Officer

Distribute copies of the Invitation for Bids to all relevant firms

Distribute the bidding documents Respond to all clarification requests received Ensure that the venue for bid opening is

adequate and that logistical arrangements are in place

Receive all bids and proposals ensuring their secure storage

Undertake the public opening of bids Review and pass all bid securities to the

Financial Officer at bid openingUndertake preliminary evaluation of all bids

and proposals Facilitate the technical evaluation of all bids

and proposals received 101

Procurement Responsibilities/ …ContProcurement Officer

Seek clarifications to bids and proposals as required to complete the evaluation

Draft the Bid Evaluation Report for review Respond to queries raised on the evaluation

report from oversight agencies or the ADBPrepare draft contractsEnsure that the relevant oversight agencies

are provided with copies of contactsIssue the notification of awardDraft the documentary requirement for any

letter of credit Monitor suppliers/contractors/consultants

performance against the contract 102

Procurement Responsibilities/ …Cont

Procurement OfficerReview all payment requests received Ensure that either the performance

security or retention monies are in place to adequately protect the Government

Ensure that all performance securities and retention monies are returned to the supplier or contractor upon the satisfactory completion of their contractual obligations

Act as The Secretary to the Procurement Committee

103

The Procurement CommitteeReview the scope of each procurement

package prior to commencement Review all Bidding Documents (BD) and

Requests for Proposals (RFP)Attend and supervise the public opening of

bids and proposalsReview evaluation and approve evaluation

reports for goods and works Individually and independently undertake

the evaluation of proposals

104

Procurement Committee Formation and ThresholdsCommittee on minor procurement

review and approve all goods up to the value of US$ 25,000

review and approve all works contracts up to to the value of US$ 50,000

Review and approve all service contracts up to the value of US$ 5,000.

Chaired by the Project Manager and include the Project Technical Officer and a representative of MEF

105

Procurement Committee Formation and Thresholds

General committee on procurementReview and approve all goods ranging in

value: US$ 25,000 - 500,000Review and approve all works contracts to

the value: US$ 50,000 - 3,000,000Review and approve all service contracts

from US$ 5,000 - 500,000Individually and independently undertake the

evaluation of all contract proposals

106

Procurement Committee Formation and Thresholds

General Committee on ProcurementChaired by the Project Director. The members

will be the Project Manager, one representative from the EA (and not a member of the PMU) and one or two representatives from MEF at the discretion of MEF.

In the event that MEF only designates one representative for a particular meeting the Project Financial Officer will be invited to become a Committee member for that meeting.

107

Procurement Committee Formation and ThresholdsMajor Committee on Procurement

review and approve all goods above the threshold value : US$ 500,000

review and approve all works above the threshold value : US$ 3,000,000

Review and approve services above $500,000

Individually and independently undertake the evaluation of all contract proposals above the threshold value

108

Procurement Committee Formation and ThresholdsMajor Committee on Procurement

Chaired by the Head of the EA or a duly authorized representative

Project Director One representative appointed by the head of

the EA Two representatives from the MEF

109

Procurement Committee Formation and ThresholdsThe Project Director or MEF may invite any

number of observers to the meetings of each Procurement Committee meeting

In the event that authority or approval is required by a Committee member from his/her parent organization, the Chair of the Committee will set a deadline for obtaining such approval

110

Methods of Procurement

The Procurement of GoodsThe Procurement of Civil WorksThe Procurement of Consulting Services

111

Methods of Procurement, Goods

International Competitive Bidding (ICB)Limited International Bidding (LIB)National Competitive Bidding (NCB)Shopping (NS or IS - either national or

international)Direct Contracting (DC)

112

Methods of Procurement, Goods

International Competitive Bidding (ICB) In most cases the preferred method;Must adopt the ADB’s standard documents; Used when the value is above US$100,000;Provides a wide range of choices from

competing suppliers; Provides the suppliers (or potential suppliers)

adequate, fair and equal opportunity; Advertised both nationally and internationally

113

Methods of Procurement, Goods

Limited International BiddingIdentical to ICB, the same standard

document of the World Bank is used but no advertising

The goods or equipment is highly specialized and there are only a limited number of suppliers

The items are proprietary For an urgent repeat order

114

Methods of Procurement, GoodsNational Competitive Bidding

Value is below US$100,000 or as stated in the Loan/Grant Agreement

Advertised nationally All suppliers both foreign and national are

eligible to bid No domestic preference is applicable Standard National Competitive Bidding

document issued by MEFUse of this document for NCB is mandatory

115

Methods of Procurement, GoodsShopping (International and National)

For values below US$ 20,000Compares the priced quotations Above US$5,000 will be advertised Quotations are sealed and opened in publicUsed for off the shelf items, when

standardization is important and exceptional circumstances as approved by MEF/ADB

Uses standard bidding documents issued by MEF

116

Methods of Procurement, Goods

Direct Contracting (DC)Should be used as little as possible No competitionFor procurement of less than $500The contract is negotiated May be used in exceptional cases with the

prior approval of MEF/WB

117

Methods of Procurement, WorksInternational Competitive Bidding (ICB)

In most cases the most appropriate method Used when the value is above US$300,000Must use the WB’s standard bidding

documentsProvides a wide range of choices from

competing contractors Provides the contractors adequate, fair and

equal opportunity Advertised both nationally and internationally Open to all who purchase the bidding

document118

Methods of Procurement, WorksLimited International Bidding

Identical to ICB, the same standard document of the ADB is used but no advertising

The works are highly specialized and there are only a limited number of contractors

The works are proprietary For an urgent repeat order

119

Methods of Procurement, WorksNational Competitive Bidding

Value is below US$300,000Advertised nationally All contractors both foreign and national are

eligible to bid No domestic preference is applicable Standard National Competitive Bidding

document Use of this document for NCB is mandatory

120

Methods of Procurement, WorksShopping (International and National)

For values below US$ 20,000Compares the priced quotations Above US$5,000 it will be advertised Quotations are sealed and opened in publicUsed for off the shelf items, when

standardization is important and exceptional circumstances as approved by MEF/ADB

Uses standard documents issued by MEF

121

Methods of Procurement, WorksDirect Contracting (DC)

Should be used as little as possible No competitionOnly when specifically allowed under the

projects Loan/Grant agreementMay be used in exceptional cases with the

prior approval of MEF/ADB

122

Methods of Procurement, WorksForce Account

Government’s own workforce, equipment and resources are used

The quantities of works cannot be defined in advance

Works are small and at scattered locations There is a natural disaster or similar

emergency needing immediate attentionHas the endorsement of the MEF/ADB

123

Methods of Procurement, Services All service procurement with the exception of single source must be advertised nationally. Service procurements above $100,000 must be advertised internationally

124

Oversight, Accountability and Good GovernanceBasic DefinitionsCharacteristics of Public Sector AuditingExternal and Internal Audit: DifferencesExternal AuditInternal AuditPre-Award Audits (n/a for Cambodia)Post-Award Audits

Basic DefinitionsOversight: supervision or watchful care

Accountability: liable or answerable.

Transparency: adhering to published rules

Good Governance: How Government uses a country’s resources for the public good

Characteristics of Public Sector AuditingAudit provides an independent, objective, and

a professionally conducted assessment about the veracity, accuracy, credibility and reliability of information.

Traditionally, audit is seen as a service, provided by independent professionals strictly observing generally accepted standards of performance. A professionally executed audit can provide a fact-based and objectively-derived opinion.

External and Internal Audit: Differences and Similarities

The essential difference between external and internal audit is that internal audit is part of the organization being audited, while external audit is not. External audit in the public sector reports to parliament and is considered part of legislative oversightInternal audit in the public sector reports to the executive and is considered to be part of executive oversight.

External AuditExternal auditors are those who are outside

of, and independent from, the entity subject to audit. Reporting is usually to third parties. In the public sector, external audit is generally external to the Executive Branch of government. In the private sector, external auditors are appointed at the annual meeting of shareholders of an entity, usually to conduct an audit of the entity’s annual financial statements.

SupremeCourt

SupremeCourt

BPKBPK

State Ministry for Administrative Reform

State Ministry for Administrative Reform

Government Boundaries

1945 Constitution

PresidentPresidentConstitutionalCourt

ConstitutionalCourt

DPDDPD

State Ministry for BUMN

State Ministry for BUMN

RegionalGovernments

Minister

Echelon1 Inspectorate

General

Line UnitsLine Units

Line Units

Central Government

SPI

BUMN

SPISPIBUMNBUMN

SecretarySecretary

GovernorGovernor

Line UnitLine Unit

BawasdaBawasda

DPRDDPRD

Bupati/MayorBupati/Mayor

Line UnitLine Unit

BawasdaBawasda

SecretarySecretary

DPRDDPRD

MoHAMoHA

JudicialCommission

JudicialCommission

MPRMPR DPRDPR

SPI

BUMD

SPISPI

BUMDBUMD

Legend: Ministry and Non Ministry Agency Level

Provincial Level

District

Command

CoordinationAudit Mandate

Audit Institutions

Audit Reporting

BPKPBPKP

Internal AuditInternal auditing is an independent, objective

assurance and consulting activity designed to add value and improve an organization’s operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.

Pre-Award AuditBefore the award of a government contract

Purpose: to independently determine the fairness and reasonableness of a bidder’s price

A critical step when competition is lacking

Post Award AuditAfter the award of a government contract, if

permitted by statute or a contractual provision

Purpose: to determine the completeness and accurateness of factual representations, and therefore recover excess profits

Case Studies (time permitting)You chair the Procurement Review

Committee and the following situations arise. What action do you take in response to these situations?

Case No. 1: There are five other Committee members. During the evaluation of proposals Bidder XYZ is ranked number one. Then, one member states “I heard Bidder XYZ was going into bankruptcy. We don’t want to award a contract to a firm on the verge of bankruptcy, they can’t perform the work!” Another Committee member states she also heard of Bidder XYZ’s poor financial situation, and the fact that it may face bankruptcy. What should you do?

Case No. 2: Five bidders have submitted proposals that are valid for a period of ninety (90) days. It is now the 87th day and the evaluation is taking longer than expected, and cannot be completed by the 90th day because key officials are on an international mission. What should you do?

Case No. 3: Five bidders timely submitted their proposals on Friday afternoon at 5:00 pm. Your ministry safely stored the proposals pending evaluation. On Monday morning, a representative of Bidder XYZ visits you to request you to accept his firm’s proposal, which was due Friday at 5:00 pm, because his flight from Bangkok was delayed. What should you do?

Case No. 4: The same situation as Case No. 3, except the representative of Bidder XYX offers you $500 to accept his firm’s proposal, and mark it timely submitted. What should you do?

Case No. 5: The financial proposals of five bidders are opened, and Bidder XYZ is lower than the other four bidders by 25%. When the time to sign the contract comes, Bidder XYZ refuses to commit to the contract, stating it would lose money, but it will sign if the price is increased by 20%, still making it the lowest price offered. What should you do?

Case No. 6: Proposals from three firms have been evaluated, and Bidder XYZ has been evaluated the highest, primarily based on the qualifications of Professor Dr. Big Shot, an internationally noted Engineering expert. Just prior to the time the contract is to be signed, Bidder XYZ wants to substitute Mr. Nobody instead of Professor Dr. Big Shot. What should you do?

Thank You!