Procurement Reform Program

Lao PDR.
Mr. Thone PHONEPHACHANH
Director of Procurement Monitoring
Office (PrMO), Ministry of Finance
Hanoi, Vietnam,November 30-
December 01, 2010
 Key challenges identified
• Not sufficient qualified staffs in the
procurement function.
• Lack of competitiveness of domestic Bidders
and the Qualification of domestic Bidder’s is
not meet with minimum qualification
requirement in the Bidding Document;
 Key challenges identified (Cont.)
• No functional system in the place to allow the
Government to monitor and enforce
implementation of the legal framework for
Public Procurement;
• Procurement Entities has lack of knowledge to
apply and not paid much attention on
Procurement Regulations. the Procuring Entity
prefers to used Direct Contracting Method.
 E-procurement status
• Not Yes apply, only Public Procurement
Website has been established since
September 2009 in purpose to enable
publication of Procurement information
(www.pp.gov.la).
Currently Legal and Regulations on
Public Procurement
• No Law, Decree No. 03/PM of the Prime
Minister on Government Procurement of
Goods, Construction, Maintenance and
Services, dated January 9, 2004;
• Implementing Rules and Regulations (IRRs) on
Decree, No. 0063/MOF, date March 12, 2004
and Amended of IRRs No. 0861/MOF, May 5,
2009;
Currently Legal and Regulations on
Public Procurement (Cont.)
• A Procurement Manual, issued by MOF in July
2009;
• A series of Standard Bidding Documents (SBD)
for Procurement of Goods and Work through
Public Bidding and for Quotation, issued by
MOF in July 2009
• A Standard Bid Evaluation Report Format,
issued by MOF in July 2009;
Currently Legal and Regulations on
Public Procurement (Cont.)
• SBD for Request For Proposal for the Selection
of Consultant, issued by MOF on September
2009;
• Template Format form to provide Proc. Report
by the Procuring Entities for monitoring and
publishing in the Public Procurement Website.
 Training and workshop
• Short training Course was conducted by
PrMO;
• The initial training for all government
procuring Entities in Country wide has been
provided and completed on October 30, 2010
in their mandatory for all government entities
to use these Documents for Public
Procurement but a sustained and expanded
program is required to raise skill levels of
existing procurement Officers.
 Medium term to improved
1. Professionalism and Training initiative;
2. Empowering the procurement oversight
function to be able it to enforce
implementation and monitoring of
procurement carried out by the Procurement
entities.
1.Professionalism & Training initiatives
• Developing on institutionalized procurement
capacity building program (Under process of
advertisement to hired an International Consulting
Firm/Training Institution, Funding by World Bank).
• The Main objective is to facilitate effective
implementation of legal framework for Public
Procurement by strengthening procurement capacity
of government staff and also private sector through
the establishment of an in country institutionalized
procurement capacity Building Program.
 1. Professionalism & Training
initiatives (Cont.)
• Including provision of Regular Training;
• Putting in place a procurement accreditations
system;
• Incorporating procurement in the curricula of
higher educational Institutions to develop a
cadre of procurement Professionals.
2. Empowering the procurement oversight
function to be able it to enforce implementation
and monitoring of procurement carried out by
the Procurement entities.
• Convincing to government agencies to recognized of
the role of PrMO and need to supported by the
Government in building PrMO’s authority and
capacity to enable it to effectively perform its
functions in formulation of procurement policies,
monitoring and oversight that have been vested
under Procurement Decree and IRRs.
Thank You