Innovation for Sustainable Performance in Public Procurement- - - PowerPoint PPT Presentation

Innovation for Sustainable Performance in Public Procurement- Maldives

Ah Ahme med Mujuthaba Public Procureme ment Divi visi sion Minist stry y of f Finance and Treasu sury Third South Asia Region Public Procurement Conference: Innovation for Sustainable Performance Dhaka, Bangladesh, November1-3, 2015

MALDIVES – Quick Facts

Land Ar Area – approxima mately 300 km2

2 (approx. 1200 Islands)

Population – approxima mately 0.402 mi million Main Industries – Tourism, m, Fishing, Co Construction Cu Currency – Maldivian Rufiyaa (MVR VR) Per Ca Capita GDP DP – USD SD 3,930 (March 2014) Inflation (CPI CPI): 1.7% % (July 2015) Unemp mployme ment – 11.6% De Debt to GDP DP – 70% % (2014) Heavily depend on Imp mports – Fuel, Local consump mptions, Bu Building ma materials Main Ex Export – Fish products 40% % of total exports Ex Exchange Ra Rate fixed to US S Do Dollar – USD SD 1 = = MVR VR 15.42

Public Sector Procurement

What is special about Public Sector Procurement

Source of funds is the principal difference – government funds are often tax revenue, donor funds Therefore there is a need to be accountable to Parliament, civil society and donors Uniformity of systems and procedures across the public sector

Public Finance Law- Law No. 3/2006

• Passed by the

parliament

• Covers public

expenditure

Public Finance Regulation (Chapter 10)

• Issued by

Ministry of Finance and Treasury

SBD

• Issued by Public

procurement Division

Guidelines and Manual

• Issued by the

Public Procurement Division

Legal Framework for Public Procurement

What Do the regulations apply to?

• All procurement by government agencies using public

money

• Public enterprises are not covered
• Exceptions for;
• Defense or national security
• Grants/credits where donor rules apply
• Private financing and concessions

Public Procurement Division

• Procurement policy
• Regulations
• Oversights

Tender Evaluation Section

• Over MVR

1.5 million

Lead Government Agencies

• Depending on

the procurement

Other Government Agencies

• Less than MVR

1.5million

Institutional Framework- Who does what

Approval Authorities

Accountable officer – low value contracts

• Up to MVR 25,000

Agency Tender Committees

• Between MVR 25,000 to MVR 1.5 Million

National Tender Board

• More than MVR 1.5 Million

Sustainable tools in Procurement Public Private Partnerships (PPP)

Tourism Real Estate Utilities Health Care

Procurement Data

• Procurement % of GDP in 2014 was 9.20%
• Up to 30 September 2015, about 105 contracts amounting to USD 74.85 Million has

been awarded by NTB.

90.41 121.55 77.60 75.94 142.71 130.46 111.50 78.86 129.99 109.34 91.84 149.63

• 20.00

40.00 60.00 80.00 100.00 120.00 140.00 160.00 2009 2010 2011 2012 2013 2014

Value of Contracts Awarded in Millions USD

Projects awarded by NTB Procurement by government Agencies

Procurement Data

• SOEs procured a total of

USD 828.72 million in 2014.

• This data is based on

2014 expenditures made by the GoMV and can be seen as representative of procurement oversight by Tender Evaluation Section

• f MOFT.

Maldives Airport Company Limited, 186.46, 22% State Trading Organisation PLC, 494.30, 60% FENAKA, 32.12, 4% Maldives Ports Authority, 3.26, 0% Dhiraagu plc, 31.58, 4% Gulhi Falhu Investment Ltd, 0.01, 0% Island Aviation Services, 55.97, 7% MWSC, 25.03, 3%

Procurement Carried out by SOEs in 2014 (USD in millions)

…. Way Forward

• E-GP (Relevant changes to legal framework

as in progress)

• Framework Agreements (Relevant changes

to legal framework is in progress)

• GRM (Relevant changes to legal framework

is in progress)

• Procurement Monitoring – Online Tracking

Thank You