Procurement Reform

Program
Cambodia
By Pen Thirong (DIC) and Huot Vathana
(DPP)
Ministry of Economy and Finance
Hanoi, Vietnam
Nov. 30 – Dec. 01, 2010
Public Procurement System in Cambodia
 No Public Procurement Law
 Governed by two Sub-Decrees setting out
principles, responsibility, accountability and
implementing rules and regulations:
 For externally assisted projects: Procurement Manual
and Standard Operating Procedures were issued in
February 2007
 For domestically financed projects: Sub-Decree on
National Public Procurement as well as Implementing
Rules and Regulations were issued in 2006 & 2010
These have led to different institutional
arrangements
Major Issues for DPs Funded Projects
 Long Delays in Procurement Process
 Inconsistencies in procedures among DPs, EAs
 Delays in DP Response Time
 Delays in Start Up Activities like completion of
detailed designs, recruitment of project management
consultants, although advance action allowed
 Lack of Competition
 Domestic capacity of contractors, manufacturers
 Lack of responsiveness due to lack of understanding
of bidding requirements
 Collusive practices by bidders
 Major Issues for DPs Funded Projects
 Insufficient capacity
 Lack of procurement expertise in EAs/IAs
 Lack of national procurement professionals
 E – Procurement
 No E – Procurement in Public Procurement
System in Cambodia. This is one of outputs
targeted by the Department of Public
Procurement (DPP) under PFM Reform
Program. However, implementation of action
plan may be delayed
 Public Procurement and Private Sector Capacity
in procurement is not sufficiently developed to
introduce E – Procurement at this stage
 Professionalism and Training
 Cambodia suffers from lack of human resources
skills in procurement both at the public and
private sector levels
 No Learning Institution in the country offering
structured skills training and education in
procurement area/field
 Training mostly provided in the Public Sector
through ah hoc and short term training
 Currently, MEF facilitates or provides training
program to EAs and LMs
Planned Capacity Building (Now-2013)

 MEF has prepared a Capacity Building Program

with Two Phase Approach
 Phase I (by DIC)
 Structured Short to Medium Terms Training of EAs’
Officers by international experts/DIC staff
 Interim Certification of Procurement Professionals
be provided
 Use EFI as a National Learning Institution
 Training of Trainers
Planned Capacity Building (Now-2013)
 Phase II (long-term: by DPP)
 Development of single public procurement
implementing rules and regulations
 Establishment of a National Learning Institution
 Professional Certification Program for Membership
to International Institutes for Procurement
Professionals including Twining Arrangement with
international procurement training institute
 Provision of training program in country wide to
procurement officers of both national and sub-
national levels
 Current Legal Framework & Reform
 Article 70 of Public Financial System Law
empowers MEF with function of public
procurement management
 Recently adopted Anti-Corruption Law
 Civil Servant Code
 RGC is carrying out Public Procurement
Reform under the PFM Reform Program
 DPP is preparing the reform framework
including Draft Public Procurement Law
 DPP in MEF is responsible for policy
development and regulatory functions, including
auditing role
 Current Legal Framework & Reform
 Current Legal Framework (2 Sub-Decrees)
 Sub-Decree on public procurement for use with
externally financed projects (PM)
 Sub-Decree and implementing rules and regulations
on procurement under domestically funded projects
 For externally funded projects, Complaint
Handling Mechanism and Sanction Policy
 Follow international best practices (ADB&WB)
 Anti-Corruption Law adopted by legislative bodies
and Anti-Corruption Institution established
 Current Legal Framework & Reform
 Civil Servant Code
 SOP/PM/FMM for use with externally financed
projects are being reviewed and updated. Procedures
on complaint handling mechanism and sanction
policy be further reviewed and updated consistently
with Anti-Corruption Law and its action plan
 Law on Public Procurement is being drafted by
DPP in consultation with all stakeholders
 Website on PP is being designed
 Important Initiatives
 Comprehensive Capacity Building in
Procurement in Rural Development Ministries is
important to help delivery of public services to
benefit the rural citizen
 Review and update of SOP and PM (to be completed
by June 2011)
 Mandatory Use of Procurement Tracking Form
for monitoring of procurement
 Bench Marking- maximum time allowed for each
activity under procurement cycle mandated under
the PM
 Exit from IPA arrangement (for WB funded projects)
 Important Initiatives

 Country wide training program for RGC’s civil

servants (PFM Reform Program) in
procurement area
 Establishment of the National Learning
Institution for PP professionalism and conduct
training activities
Thank You!