ROLE OF PUBLIC PROCUREMENT IN SERVICE DELIVERY, CURRENT ISSUES AND THEIR RESOLUTION Department of National Properties Ministry of Finance, Bhutan Karma Wangdi 1
Population: 797,765 (2016) - National Housing and Population Census Prof ofile le of of Bh Bhut utan an GDP : USD 2.237 Billion (2016) PPP: USD 2751.20 (2016) Forest Coverage : 72% (60 percent Constitution) Overall Literacy Rate : 59.5% GDP Growth Rate : 6.2% (2016) Government: Democratic Constitutional Monarchy 2
CONTENT Public Procurement and 01 Service Delivery- Recent Activities & Achievements This is a sample text. Insert your desired text here. (2016, 2017) 02 Sample text This is a sample text. Issues, Challenges, Solutions Insert your desired text here. 03 Sample text Way Forward 04 Action Plan – Short term and Long term 3
Major Role of Public Procurement Eco-friendly Innovation Social Economic responsibilities contribution PUBLIC PROCUREMENT 4
Challenges Economic Contribution Unequal development due to uneven distribution of population Government is the Rugged terrain and biggest single source of inaccessible areas business with the Solutions private business Expanding private business leads to PRR allows procurement greater employment within the locality restricting opportunities other established suppliers Establishes reliable to take away their share of business supply chain in the domestic market. 5
SOLUTION CHALLENGES – Domestic manufacture – Difficult to of concrete bricks, cement blocks, improvise but – Domestic preference doable with Specially in to SME, Business modern materials construction, Association of Women to mould as per of Bhutan, priority is placed design. – Consistent monitoring on preservation – Not much potential of Labour Act 2007 of culture, lays down financial, business to invest traditional design safety, human rights at one go due to etc. and materials capital intensive SOCIAL RESPONSIBIITIES 6
Eco-Friendly Any production in Bhutan is strictly monitored by oversight bodies-cement, Achieved a global recognition as the first Carbon Neutral Country, Criteria are set highlighting the environmental friendly procurement. Challenges – Import driven country for any materials, household items, equipments etc. – Limited Acts and policies to really make an impact of such procurement. 7
Eco-Friendly SOLUTION o Switch Asia EU Project initiated Green Public Procurement of Bhutan (GPPB) recommending 10 recommendations to the Royal Government of Bhutan. 7 out of 10 recommendations are on sustainable, eco friendly, waste minimization and proper disposal. o Environment Assessment Act of Bhutan (2000), Waste Prevention and Management Act (2009), Mining Act (1995). 8
Innovation No country can afford to lag behind at this time. Race for “Innovation” is imperative . Looking for most effective and efficient ways to reduce cost and waste. Royal Government introduced subsidized LED bulb distribution from state owned outlet across the country. 9
Issues, Challenges & Solutions The Issues, Challenges and Solutions is done through �PESTLE� Analysis Politically sets national targets based on their priority massively impacting the procurement of works, goods and service to achieve their targets. Procurement officials need to keep abreast of such move to minimize the risk. 10
Issues, Challenges & Solutions Economically growing as the third fastest economy in the �orld 11.1 per�e�t as per World Ba�k’s Glo�al Prospe�t. Huge amount is invested in hydro power and road construction to boost the economy. Procurement department is mandated to plan and procure more efficiently and effectively. Socially and culturally Bhutan is very conservative. However with the onslaught on modernization it is proving to be diffi�ult to �ai�tai�. It is go�er��e�t’s poli�y to pro�ure o�ly socially acceptable products and culturally blending with tradition. 11
Issues, Challenges & Solutions Technologically advancing to keep up with the rest of the world taking advantage of modern technology in construction, health service and information dissemination. Procurement Department is keeping the pace by moving to e-procurement. Legally strong in dispensing fair and justice whenever there is procurement related litigation. However it is challenged by absence of procurement policy and act. Procurement department is drafting policy and act. Environmentally mandated to maintain 60% under forest cover at all time as enshrined in the constitution. Government initiated green and sustainable procurement banning CFC import. Procurement Department is constantly working on such move. 12
Recent Activities & Achievements e-GP System 13
Recent Activities & Achievements • Long term capacity development of Procurement Professional Development - CIPS 14
ACTION PLAN SHORT MEDIUM LONG ACTION TERM TERM TERM 1. Annual Procurement Plan Implementing 2. Drafting of Policy 2-3 Years 3. Procurement Act 3-5 Years 4. National Procurement Council 2-5 Years 5. Capacity Development : Awareness CONTINUOUS PROCESS 6. Professional Capacity 3-5 Years Development 7. R&D Procurement System CONTINUOUS PROCESS 15
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