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Public Procurement Reform in Bangladesh |
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The Government of Bangladesh, as part of the broad public sector reforms, has embarked
upon to manage implementation challenges aiming at improving performance of public
procurement progressively as part of strengthening overall sectoral governance. In
order to achieve its aim and objective, a permanent unit, named as Central
Procurement Technical Unit (CPTU) was established in 2002 as implementing unit
in the field of procurement reform and reform implementation monitoring. Reform process
was carried out with ultimate outcomes of formulation and issuance of a unified procurement
processing system (Public Procurement Regulations 2003), Implementation Procedures
for PPR 2003, Public Procurement Processing and Approval Procedures (PPPA), Revised
Delegation of Financial Powers (DOFP) and several Standard Tender Documents (STD's)/Standard
Request for Proposal Document for the procurement of Goods, Works and Services. Later
on in 2006, the Public
Procurement Act was passed by the Parliament (PPA 2006) and in 2008, a new
set of Public
Procurement Rules (PPR 2008) was issued. The PPA 2006 and PPR 2008 were made effective
on w.e.f. 31 January, 2008. |
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Country Procurement Assessment Report (CPAR) and the Public Procurement
Reform Project (PPRP) |
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The slow procurement performance under different projects led to the Country Procurement
Assessment of prevailing public procurement policy, framework, institutions and staff
skills in 2001. The Country Procurement Assessment Report (CPAR) which was prepared
by World Bank, in agreement with the Government of Bangladesh, identified many deficiencies,
including the following major deficiencies, in the procurement system of the Government
of Bangladesh: |
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 Absence of sound legal framework
governing public sector procurement
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Complex bureaucratic procedure
causing delay |
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Absence of planning
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Multiple layers in the approval
and review process |
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Lack of adequate professional
competence of staff to manage public procurement |
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Generally poor quality bidding
documents and bid evaluation |
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Ineffective administration
of contracts |
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Absence of adequate mechanism
for ensuring transparency and accountability. |
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With the above backdrop, the need for improving governance in the public procurement
management area was felt. The first "Public Procurement Reform Project" with IDA assistance
approved on 14 February 2002 clearly defined its implementation objectives as to 'contribute
to improved performance in public procurement through introduction of
measures to make the public procurement system compliant with internationally agreed
norms for efficiency, transparency and accountability with the increase of procurement
capacity through training and creation of a pool of national procurement professionals.
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