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 km 2 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
Legal Framework for Public Procurement Public Finance • Passed by the Law- Law No. parliament 3/2006 • Covers public expenditure Public Finance • Issued by Ministry of Regulation Finance and (Chapter 10) Treasury • Issued by Public SBD procurement Division • Issued by the Guidelines and Public Manual Procurement Division
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
Institutional Framework- Who does what Tender Evaluation Section • Over MVR 1.5 million Lead Government Agencies Public Procurement Division • Depending on • Procurement policy the procurement • Regulations • Oversights Other Government Agencies • Less than MVR 1.5million
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 Value of Contracts Awarded in Millions USD 160.00 149.63 142.71 140.00 130.46 129.99 121.55 120.00 111.50 109.34 100.00 91.84 90.41 78.86 77.60 75.94 80.00 60.00 40.00 20.00 - 2009 2010 2011 2012 2013 2014 Projects awarded by NTB Procurement by government Agencies • 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.
Procurement Data Procurement Carried out by SOEs in 2014 (USD • SOEs procured a total of in millions) USD 828.72 million in 2014. Island Aviation Services, 55.97, 7% Gulhi Falhu • This data is based on Investment MWSC, 25.03, Ltd, 0.01, 0% 3% 2014 expenditures made Dhiraagu plc, by the GoMV and can be Maldives 31.58, 4% Airport Company seen as representative of Limited, 186.46, 22% Maldives Ports procurement oversight by Authority, 3.26, 0% FENAKA, 32.12, Tender Evaluation Section 4% State Trading Organisation of MOFT. PLC, 494.30, 60%
…. 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
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