68156
AFGHANISTAN
COUNTRY PROCUREMENT ASSESSMENT:
CONSULTING SERVICES
June 2007
Procurement Services Unit
South Asia Region
This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not be otherwise disclosed without World Bank authorization.
Abbreviations and Acronyms
ABA Afghan Builders Association
ADB Asian Development Bank
AICC Afghanistan International Chamber of Commerce
AISA Afghanistan Investment Support Agency
ARDS Afghanistan Reconstruction and Development Services
ARDS PU Afghanistan Reconstruction and Development Services Procurement Unit
ARTF Afghanistan Reconstruction Trust Fund
ASCE American Society of Civil Engineers
Bank The World Bank
CEU Contract Evaluation Unit
CMO Contract Management Office
CPIA Country Policy and Institutional Performance Assessment
CQS Selection Based on the Consultants’ Qualification
CSC Civil Service Commission
DFID UK Department for International Development
EC Evaluation Committee
EoI Expression of Interest
EPAP Emergency Public Administration Project I and II (World Bank)
FBS Fixed Budget Selection
FTP Full Technical Proposal
GDP Gross Domestic Product
GoA Government of Afghanistan
GTZ Gesellschaft fuer Technische Zusammenarbeit (German Development Agency)
IDA International Development Association
IRS Internationally Recruited Staff
LCS Least Cost Selection
LICUS Low-Income Countries Under Stress
LM Line Ministry
LRS Locally Recruited Staff
MoE Ministry of Economy
MoEW Ministry of Energy and Water
MoF Ministry of Finance
MoFA Ministry of Foreign Affairs
MoLSA Ministry of Labor and Social Affairs
MQS Minimum Qualifying Score
NGO Non-Governmental Organization
NO No Objection
NSP National Solidarity Program
ODA Official Development Assistance
PA Public Administration
PACBP Public Administration Capacity Building Project
PC Procurement Consultant
PDT Peace Dividend Trust (NGO)
PLO Procurement Liaison Officer
PMU Project Management Unit
PPL Public Procurement Law
PPU Procurement Policy Unit (within the MoF)
PR Rules of Procedure for Public Procurement in Afghanistan
PRR Priority Reform & Restructuring Framework
PRP Procurement Reform Program
PU Procurement Unit (within ARDS)
QBS Quality-Based Selection
QCBS Quality- and Cost-Based Selection
RFP Request for Proposals
SPC Special Procurement Commission
SRFP Standard Request for Proposal
SSS Single-Source Selection
STP Simplified Technical Proposal
ToR Terms of Reference
TSU Technical Support Unit
TTL Bank Task Team Leader
UNDP UN Development Programme
Guidelines 2004 Bank Guidelines on the Selection and Employment of Consultants by World Bank Borrowers
Vice President
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:
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Praful C. Patel
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Country Director
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:
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Alastair J. Mckechnie
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Sector Director
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:
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Barbara Kafka
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Sector Manager
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:
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Els Hinderdael-Forger
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Task Team Leader
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:
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Shawkat M.Quamrul Hasan
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Table of Contents
PREFACE ii
EXECUTIVE SUMMARY ii
Introduction 1
Country Economic Background 1
Public and Private Sector Development 1
Security Situation 1
Consulting Services in Afghanistan 2
Past Developments and TA in the Area of Public Procurement 2
Objectives and Execution of Assessment 3
Findings & Recommendations 4
Bank Policy on Selection of Consultants 4
The Bank’s Response to Crises, Emergencies and Fragile States 4
Weighing QBS against QCBS 5
GoA Policy on Consultants 5
Legal and Regulatory Procurement Framework 6
The New Public Procurement Law 6
Rules of Procedure for Public Procurement 6
Recommendations to Improve the Legal and Regulatory Framework 8
Afghan Institutional Framework & Organization of Procurement 8
ARDS Procurement Unit 8
Line Ministries 9
Procurement Policy Unit 10
Special Procurement Commission 10
Contract Management Office 10
Appeal and Complaint Mechanisms 10
Professional Consulting Associations 10
Recommendations to Improve the Institutional Framework 11
Afghan Procurement Procedures and Practices 11
Available Procurement Manuals or Guidelines 11
Availability of Standard Request for Proposals 11
Recommendations to Improve Procedures & Practices 11
Bank Procurement Capacity 11
PA Procurement Capacity 11
Procurement Capacity of PC within ARDS 11
Previous and Ongoing Capacity Building and Training 12
Capacity within Line Ministries - Key Constraints and Challenges 12
Procurement Capacity in Provinces and Districts 13
Capacity-Building Approach by PACBP and PRP 13
Risks within Capacity-building Approach by PACBP and PRP 13
Efficient Selection of Consultants 13
Development of National Consultants 14
Capacity Building of the PA 14
Recommendations 15
Corruption and Integrity in Procurement of Consultants 16
Steps to be taken by Government 16
Steps to be taken by the Donor Community 17
Public Sector Demand for Consulting Services 17
Domestically Funded Demand 17
Consulting Services Funded by the Bank 18
International Supply of Consulting Services 19
International Participation 19
Performance on Consulting Service Contracts 19
Remuneration Levels 20
Recommendations 20
Domestic Supply of Consulting Services 20
The Local Consulting Sector 20
Main Areas of Expertise 21
Performance on Public Contracts and Remuneration Levels 22
Capacity Assessment of Afghan Consultancies 22
Developing Capacity of the Domestic Consulting Sector 23
Overcoming the Information Gap on Consultants 24
Recommendations 24
Risk Assessment 25
Annex 1: List of Persons Met 26
Annex 2: Details of GoA-funded Consulting Contracts since December 2004 29
Annex 3: Bank-funded Consulting Assignments, 2003-2006 30
Annex 4: Assessment of 10 Bank-funded Consulting Assignments on EoI & Submission Rates 36
Annex 5: Assessment of 12 Bank-funded Consulting Assignments on Billing Rates 37
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