Mongolia Procurement Reform Program

8/8/2019 Mongolia Procurement Reform Program

1/18

Procurement Reform Program

General Director, Kh.Gantsogt

Procurement Policy Department ofMinistry of Finance, Mongolia


2/18

Key challenges

Public Procurement system development

(legal and organizational structure)

E-ProcurementTraining

Three years plan (2011-2013)

Procurement Reform Program


3/18

Key challenges identified

Corruption (lack of willingness)

Weak monitoring and auditing of procurement

performances

Lack of transparency (do not publishing bid result)

Contract management issue (responsibility of

Procuring entities and contractors)

Delays and mismanagement due to lack of planningand capacity


4/18

Public Procurement

System Development in Mongolia

2000-2005 (Centralized)

Establishment of first law on PublicProcurement

Institutional Structure: Policy and Coordination

Semi centralizedImplementation

Capacity Building

Training and Methodologyadvise

Budget-Tendering

2006-2010 (Half Centralized)

Revised Law on Public Procurement

Strengthening the InstitutionalStructure:

Policy and Coordination

Decentralized Implementation

Capacity Development

Sustainable Training System

E-procurement


5/18

Revised Law on Public Procurement (2006-2010)

Strengthening the decentralized implementation of the procurementprocess and streamlining the procurement management

Enhancing the responsibility and accountability at the procuring entity

level (procurement planning to reporting and filing)

Clearly defined procurement policy and coordination functions andresponsibilities of the Ministry of Finance (Procurement PolicyDepartment)

Guaranteed the principles and legal basis of introducing e-Procurementsystem into the government procurement


6/18

Institutional Structure:

Procurement Policy Department

Formulation of the government procurement policy, that supportseconomic development objectives and mid term fiscal policy

Drafting the legislation and issuing the rules and procedures forpublic procurement practitioners including sample SBD and contractforms

Procurement review and monitoring through no-objection

Government procurement capacity development

Collection and dissemination of information related to the publicprocurement

Research and analysis related to the public procurement


7/18

The Procurement Policy Department (PPD) is a professional

department, which deals with variety aspects of policies and

coordination of public procurement.

PPD doesntnot engage in organizing and implementing procurement

activities directly.

PPD only provides contractors with professional advice, necessary rules

and instructions.

PPD keep surveillance on contracting procedures of governmentorganizations, whether it is ruled by relating laws, regulations and

rules.

Procurement Policy Department


8/18

E-procurement

July October, 2007 Feasibility study on introducinge-procurement to Mongolia is conducted by KoreanGovernment;

November, 2007 Request for financing Phase 1 ofintroducing e-procurement to Mongolia submitted toKOICA;

Waited for electronic infrastructure establishment;

In July 2010, MOU between two countries weresigned, establishment of e-procurement systemproject is ready to be launched;

The project will continue for period of 10 monthsstarting from November 8, 2010;


9/18

E-procurement

The purposeone stop bid system; automation of

business process; and public information

disclosure via Internet; By developing e-procurement system,

e-shopping mall system,

e-bidding system,e-catalog system,


10/18

E-procurement

Expected results of the e-procurement system improvement of transparency and efficiency;

acceleration of government digitalization;

cost reduction;

By 2013, e-procurement system will implement andall procurement transactions will be done by onlineform.


11/18

Public Procurement Training

Basic 2 reasons:Inadequate competence of

implementing public institutions

Increased level of Public awareness

on Public Procurement of the

Government


12/18

2000-2006 MOF providing a training

2006- present Training institutions areproviding training

Public Procurement Training


13/18

National program for human resource

development of Public Procurement

2007-2010 (National Program)

Objective

Develop the system to train a capable professional human resource toconduct public procurement at the national level

Focusing on:

Identify the strategy and desired outputs in the med term Ensure the participation of civil society and universities and other NGOs

Accreditation of training institutions that provides permanentprofessional training program with certificates

Enhancing the knowledge and skills of all parties involved in publicprocurement including suppliers and contractors

Public awareness programs to improve right perception andunderstanding on public procurement


14/18

Cooperating Institutions(under MOU) Procurement Development Center NGO-MOU Academy of Management

(an Implementing agency of Mongolian Govt.) Mongolian National University University of Science and Technology

Department of Management


15/18

Responsibilities parties:

Technical support to training institutions by MOF

Training of trainers by MOF

Exchange of information

PPD is responsible for taking tests and issuing certificates from

trainings held by institutions

Basic requirements for MOU establishing

Technical: (have at least one training room equipped with

adequate training tools)

Human: (at least 2 teachers trained issued B5 training) etc.,.

Via MOU regulatingHow is the training quality ensured?


16/18

Types of Public Procurement Trainings

A1 One day (legal information dissemination)

More than 2000 certificates issued

A3 Three days (Basics of Public Procurement)2600 certificates issued

B5 Five Days (Training of Trainers)

91 certificates issued


17/18

Additional regulations made in accordance with

ensuring of Public Procurement knowledge

Regulation on short -term training and certificate issuing in

order (reviewed in 2008 and 2010)

Major recent amendments:

Members shall attend repetitive course after expiry of

3 year validity period of the Certificates

Evaluation committee head and secretary must own

A3 Training Certificate for mandatory


18/18

We are working to improve efficiency of the Public Procurement step by

step with cooperation with World Bank, Asian Development Bank andKOICA (Korean International Cooperation Agency)

We started the following works and those will be the leading tasks of thefollowing three years.

1. To improve and develop Public Procurement Law and otherrelating rules and instructions.

Blacklisting

Performance monitoring, strenthened Accountability

Further decentralization

2. To implement e-Procurement (e-Shopping, e-Bidding) system

3. To continue develop National Training System Online training program

Short term training program for private sector

University degree program on Procurement

Support for training institutions

In the following three years (2011-2013)

Mongolia Procurement Reform Program

Documents