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Main features of the economy: High paces of economic growth; Social and financial stability; High investment activity; Budget surplus; Balance of payment and balance of trade surplus; National currency sustainability; Continuous income growth of population; Creation of new jobs; Accumulation of funds in international reserves. 2
In 2014 new Budget Code was adopted in Turkmenistan; Law of Turkmenistan “On tenders for goods, works and services for public needs” issued in 2014 ; Transition to the national financial reporting standards in line with the international ones made in 2014; Improvement of institutional and legislative framework. 3
The Law regulates the relationships emerging when conducting tenders for selection of suppliers (vendors) to deliver goods, works and services for public needs and is aimed at facilitating the development of fair competition. The goals of the Law are: Ensuring efficiency of public funds used; Fostering competition among potential suppliers (vendors); Enlarging participation of SME sector of Turkmenistan, civil society organizations of disabled people of Turkmenistan in procurement as state support measure; Ensuring transparency, openness and effectiveness of tenders procedures, ensuring their compliance with international standards and commonly accepted business practices in this area; Enhanced responsibility of suppliers (vendors) for meeting their obligations under the contracts for goods, works and (or) services. 4
Tender with limited participation is conducted if: Costs related to consideration and evaluation of significant amount of bids are out of proportion to the cost of goods, works or services to be supplied; Goods, works and services due to their technical complexity or specialized nature can be provided by only a limited number of potential suppliers (vendors); Tenders are related to state facilities of special importance. When conducting a tender with limited participation contracting authority shall receive at least two bids from potential suppliers (vendors) selected in accordance with the Law. 5
When conducting an open tender with unlimited participation the number of potential suppliers (vendors) invited to participate in a tender is not restricted and they are allowed to submit their bids without limitations according to the Law. 6
Tender participants can be: Tender commissions; Tender organizers (contracting authority) Potential suppliers (vendors); offeror; Suppliers (vendors). Tender participants shall be obliged to keep confidentiality principle with regard the information provided and used which contain the data representing commercial or other secrets protected by the law. 7
Tender documentation includes: Manual for bids (price quotations) preparation; Criteria and evaluation methods to check the responsiveness of potential suppliers (vendors) against announced qualification requirements established by Article 12 of the Law; Requirement of documentary proof to be provided by the offeror to verify their qualification data; Descriptions and necessary technical, qualitative and quantitative characteristics of goods, works and services to be supplied including technical specifications, plans, drawings and sketches; List of possible additional services that may be included in the contract; Place where the works should be conducted or services provided; Required contract implementation terms; Description of all criteria excluding price that are used in evaluation of bids by tender organizer (contracting authority); 8
Provisions defined by tender organizer (contracting authority) as mandatory that will be included in the contract; Descriptions of a lot or lots (batches) of goods, works and services for which bids can be submitted with the value not lower than the established threshold in the respective sector of economy; Method of calculation and expression of the bid’s value, including the mention on the whether the price shall contain other elements apart from the cost of goods, works and services to be supplied; When submitting bids in hard currency, if needed, - the method of comparison of prices in the bids expressed in this currency; Contract performance security and special (tender) fee amounts; Requirements to: а) format, validity and other main terms of contract performance security; b) main terms of payment of special (tender) fee; Exact place and deadlines for tender bids submission; Description of the procedure of providing clarifications on tender documentation inquired by potential suppliers (vendors); 9
Validity period of the bids; Exact description of the place, date and time of opening envelopes with tender bids (price quotations); Foreign language that can be used for preparation of bids (price quotations) in addition to the official state language of Turkmenistan; Surname, name, position and address of one or several contact persons from the side of tender organizer who are mandated to stay in touch with persons specified in items 3-5 Part 1 of Article 7 of the Law, as well as means of communication; Notice on the right of persons specified in items 3-5 Part 1 of Article 7 of the Law to appeal the actions or decisions of the tender commission and (or) tender organizer during tender procedure and delivery period; Format, significant terms and conditions of the contract and signing deadlines; Any other additional information needed for certain categories of supply. 10
The Procedure of “Conducting tenders for goods, works and services for publi c needs” The Procedure was approved in February 2016 It regulates the procedure of conducting tenders for goods, works and services for public needs . 11
Procurement professionalization The Ministry of Finance of Turkmenistan has a Division for payments and tenders which organizes and conducts tenders for goods, works and services for public needs. The staff of this Division every week attends trainings on studying national legislation in the area of public procurement and budget spending. This staff also participates in training courses and workshops organized by the World Bank Group and other financial institutions. 12
Procurement professionalization The staff of the Division for payments and tenders under the Ministry of Finance regularly conduct workshops for the staff of sector ministries to explain the procurement procedure and the order of “Conducting tenders for goods, works and services for public needs” and also to provide any other methodological support in procurement area. 13
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