There is an immediate need for an interpretative Manual on the Selection of Consultants. While the rules of procedure on procurement cover the general steps of the selection process, they lack clear guidance on specific points such as the definition of evaluation criteria, the composition of the evaluation committee and the evaluation process. Currently, no comprehensive manuals exist on the selection of consultants (such as a Good Procurement Manual or Consultant Services Manual). While ARDS has prepared a Quality Manual, it focuses only on Bank rules and lacks guidance on many specific issues such as shortlisting, defining evaluation criteria, and the evaluation process. Comprehensive application manuals will be developed under the PRP.
Availability of Standard Request for Proposals
The Standard Request for Proposals (RFP) will be developed under the PRP.
Recommendations to Improve Procedures & Practices
The consulting firm responsible for elaborating manuals and the Standard RFP should rely to the extent possible on the recommendations and advice laid down in the Bank Consulting Services Manual (2006). Since the PPL and the rules of procedure on procurement are inspired by Bank rules, many practices suggested by the Consulting Services Manual will prove very helpful in the Afghan context.
Bank Procurement Capacity
According to TTLs interviewed the procurement capacity of the Bank has considerably improved since a senior procurement specialist joined the Bank office in Kabul in June 2006.26
PA Procurement Capacity
There is a widespread recognition that lack of capacity is probably the greatest constraint (apart from security concerns) to achieving results in Afghanistan.
Many TTLs interviewed expressed concern about the capacity of the PC handling procurement for the Bank and the GoA (see ARDS PU, paras. 24 ff). They concede that many delays are caused by time-consuming Afghan decision-making processes. However, Bank TTLs specifically feel that the PC lacks capacity to ensure the professional evaluation of proposals. Therefore, TTLs stress the need to contract in additional capacity for major Bank-funded projects and refer to successes gained by outsourcing the procurement services and the project oversight to international consultants independent from the PC (as practiced, for example, under the Bank-funded National Emergency Employment Program and the Emergency National Solidarity Project).
Under EPAP I and II the PC undertook training of between 110 and 150 procurement staff from various LM. However, the training was based mostly on Bank procurement rules and national legislation that was then superseded by the PPL. Not all stages of the training course were completed as planned due to lack of resources and other pressing priorities. Training on the provisions of the new PPL is foreseen under the PRP.
Ten Procurement Liaison Officers (PLO) were selected under EPAP II and PACBP for intensive procurement training and attended a course at the Administrative Staff College of India in Hyderabad. The training began in January 2004 and the PLOs were intended to provide core procurement capacity and to assist the LMs in building their own capacity. The plan was to retain the PLOs within ARDS first and to subsequently place them in the procurement units to be set up in the LMs pursuant to the new PPL. However, according to the most recent information, five of the ten PLOs left ARDS to pursue better paid careers. ARDS’s loss will have a negative impact on the capacity-building programs within the LMs. Since the PLOs were intended to be transferred into at least six to nine key spending LMs specifically supported under the upcoming PRP, their loss might delay achievements under the new project.
Further training provided by the PC under PACBP included:
Staff of three LM (Ministry of Energy and Water, Ministry of Defense and Ministry of Mines) received a one-month training program on the new PPL and related procurement procedures;
Two procurement officers of Ministry of Agriculture and Irrigation are currently receiving on-the-job training; and
Training for other LM (4 staff members per ministry) commenced at end of November 2006.
In addition, the GoA decided to transfer responsibility for consultant selection and administration to the LMs so that they can develop further capacity through increased involvement in the procurement processes.
Capacity within Line Ministries - Key Constraints and Challenges
Three key issues were identified by the mission consultations and by the PC in its March 07 Progress Report:
Inefficient internal procedures (for example, a requirement to obtain a No Objection (NO) from domestic higher award authorities after having obtained NO from donor agency);
Lack of capacity to conduct evaluations and assess the quality of EoI and proposals (see Efficient Selection of Consultants, para. 49).
Lack of understanding of procurement principles and rules, lack of compliance and accountability at decision-making level.
Lack of adequate IT infrastructure within LMs.
The level of capacity varies, with higher capacity in the few LM that can draw on the assistance of PMUs or TSUs, and lower capacity in LMs that do not have access to international advice. Concerns about the capacity of local staff dealing with procurement were expressed by all TTLs interviewed. Almost constant assistance by expatriate staff is deemed necessary for delegating parts of the procurement processes to local counterparts.
In addition, TTLs and international consultants interviewed referred to lack of capacity in the PA for managing and supervising consulting assignments. The PA and consultants often seem to disagree on payment terms and on the interpretation of tasks defined in the Service Contracts.
Procurement Capacity in Provinces and Districts
No data on procurement in the provinces and districts was obtained by the mission. However, according to interviews with NGOs implementing the NSP, regional procurement entities are facing the same problems as the national authorities.
