The assignment of the Procurement Consultant (PC) within the PU of ARDS has two major objectives:
Procurement facilitation for all goods, works & services under operations financed directly by IDA, by the IDA-administered Afghanistan Reconstruction Trust Fund (ARTF), by budgetary expenditures from domestic resources21 as well as, to the extent feasible, by EU, ADB and other donors; and
Capacity Building and training for ARDS key staff on procurement-related matters.
Under supervision of ARDS the PC is assisting the Line Ministries (LMs) in procuring consultancy services starting with the issuing of Expressions of Interest (EoI) and shortlisting of consulting firms, through preparation of RFPs, receipt and opening of proposals, assistance in evaluation of proposals, obtaining World Bank’s clearance, and issue of notification of awards.
Procurement for contracts using donor funds are usually subject to the rules of the respective donor organizations. However, the PC is increasingly conducting procurement for projects financed by the GoA22 (either own resources or budget-support proceedings) subject to domestic procurement rules.
The table below presents the procurement of consulting services contracts assisted by the PC from 15 August 2002 until 31 March 07:23
Selection Method
No. of Contracts
Value US$M
% Contracts
% Value
QCBS
49
109.50
40.5%
44.6%
QBS
8
13.21
6.6%
5.4%
CQS
12
9.54
9.9%
3.9%
SSS
52
113.19
43.0%
46.1%
Total
121
245.44
100%
100%
Due to the need for emergency responses a high number of consulting contracts has been awarded under SSS. However, 43 contracts were sole-sourced from August 2002 to November 2004. Only 9 contracts have been awarded under SSS since December 2004.
The Bank’s Department of Institutional Integrity (INT) has reviewed all cases facilitated by the PC, but its report has not been finalized yet.
Line Ministries
One of the key constraints identified in former reviews was that there is no consistency in the organizational structures of the Line Ministries (LMs) with regard to the procurement functions and processes. Despite the procurement structure foreseen by the new PPL, the various LM seem to have adopted different models of organizing procurement. Some ministries have procurement departments, while in others procurement is conducted through service or planning departments. According to the interviews procurement officers in LMs are sometimes not involved in procurement processes. The reasons for disregarding available procurement personnel seem to be:
Lack of trust in the capacity of the procurement personnel;
Lack of management, English and IT skills of procurement personnel and a history of frequent delays and non-performance of procurement personnel;
Lack of communication between trained procurement staff and senior officials and consequently no awareness that qualified procurement personnel might be available; and
Desire to retain control over the procurement process without interference of procurement personnel.
In some LMs (e.g. the Ministry of Rural Rehabilitation and Development) management and procurement consultants are responsible for all matters regarding the procurement of services and the implementation of Bank projects. Other LMs (e.g. the Ministry of Urban Development), with Bank or donor support, have created Project Management Units (PMUs) and Technical Support Units (TSUs) and are drawing on the services of international personnel specialized in budgeting, finance management and procurement. International procurement advisors within PMUs are assigned to handle the procurement, to closely cooperate with local staff and to build capacity within the respective LM by constant on-the-job training. Ministries which currently have no PMU or TSU generally demand further support and expatriate staff specialized in procurement for building capacity in their counterpart procurement teams.
The clarification and strengthening of procurement functions within the LM are to be addressed by the PRP. The procurement processes will be reorganized to follow institutional arrangements defined in the new PPL by
Identifying 9 key spending ministries to be integrated into the Priority Reform & Restructuring (PRR) framework devised by the Civil Service Commission (CSC);24
Assisting identified ministries to prepare applications for obtaining PRR status that will result in increased equipment and higher salaries in those ministries and will encourage adherence to the institutional structures foreseen by the new PPL;
Providing procurement training to staff in key ministries.
Procurement Policy Unit
The PRP will further support the Procurement Policy Unit (PPU) within the MoF by drafting its rules of procedure, thus enabling the PPU to become a key player in the formulation of future policies, legislation and procurement rules and to execute its functions according to Article 94 of the PPL. These functions include monitoring procurement proceedings to ascertain efficiency and compliance with the law, the collection of data or reports and the review of procurement records and files, and proposing improvements in procurement practices. Currently, one international advisor (since August 2006) and 4 national staff (since September 2006) are running the PPU and consultancy support is expected to be phased out by PACBP credit closing (June 30, 2009).
Special Procurement Commission
The Special Procurement Commission (SPC) within the Office of the President provided for in Article 91 of the PPL grants approvals for all contract awards exceeding the levels of first grade award authorities.25 Its rules for procedure (Transaction of Business Rules for SPC) were drafted by the PPU and approved on March 31, 2007. The PRP will provide further assistance to the SPC.
According to Article 69 of the PPL, a Contract Management Office (CMO) has been established within the MoF. It serves as the Secretariat to the SPC. According to Article 183 PR the CMO has the overall responsibility for planning and executing the work of SPC as well as record keeping.
Appeal and Complaint Mechanisms
The PPU has finalized the design and implementation of an independent complaints review mechanism and the respective rules of procedure in accordance to Article 86 of the PPL. Articles 170 ff PR adequately provide for the administrative review of procurement proceedings challenged by a bidding firm. The PRP consultants will be responsible for providing further support and for conducting training for committee members.
Professional Consulting Associations
To date, there are no consulting associations in Afghanistan that could play a role in monitoring professional standards, representing the sector in the public-policy dialogue with the GoA, and in promoting the role of independent consultants in the Afghan economy. The capacity of the few existing local firms is still too limited. Therefore, steps towards the establishment of a consulting association in Afghanistan should be postponed until the local consulting sector has developed more capacity.
Recommendations to Improve the Institutional Framework
It is recommended that results of the PRP and INT’s review of all procurement cases on consulting services facilitated by the PC within ARDS be monitored.
