Procurement Reform Program

General Director, Kh.Gantsogt

Procurement Policy Department of
Ministry of Finance, Mongolia
 Procurement Reform Program

Key challenges
Public Procurement system development
(legal and organizational structure)
E-Procurement
Training
Three years plan (2011-2013)
 Key challenges identified
 Corruption (lack of willingness…)
 Weak monitoring and auditing of procurement
performances
 Lack of transparency (do not publishing bid result)
 Contract management issue (responsibility of
Procuring entities and contractors)
 Delays and mismanagement due to lack of planning
and capacity
 Public Procurement
System Development in Mongolia
2000-2005 (Centralized ) 2006-2010 (Half Centralized)

 Establishment of first law on Public  Revised Law on Public Procurement

Procurement

 Institutional Structure:  Strengthening the Institutional

 Policy and Coordination Structure:
 Semi centralized  Policy and Coordination
Implementation  Decentralized Implementation

 Capacity Building  Capacity Development

 Training and Methodology  Sustainable Training System
advise
 Budget-Tendering
 E-procurement
 Revised Law on Public Procurement (2006-2010)

• Strengthening the decentralized implementation of the procurement

process and streamlining the procurement management

• Enhancing the responsibility and accountability at the procuring entity

level (procurement planning to reporting and filing)

• Clearly defined procurement policy and coordination functions and

responsibilities of the Ministry of Finance (Procurement Policy
Department)

• Guaranteed the principles and legal basis of introducing e-Procurement

system into the government procurement
 Institutional Structure:
Procurement Policy Department
 Formulation of the government procurement policy, that supports
economic development objectives and mid term fiscal policy

 Drafting the legislation and issuing the rules and procedures for
public procurement practitioners including sample SBD and contract
forms

 Procurement review and monitoring through no-objection

 Government procurement capacity development

 Collection and dissemination of information related to the public

procurement

 Research and analysis related to the public procurement

 Procurement Policy Department

 The Procurement Policy Department (PPD) is a professional

department, which deals with variety aspects of policies and
coordination of public procurement.
 PPD doesn’t not engage in organizing and implementing procurement
activities directly.
 PPD only provides contractors with professional advice, necessary rules
and instructions.
 PPD keep surveillance on contracting procedures of government
organizations, whether it is ruled by relating laws, regulations and
rules.
 E-procurement
• July –October, 2007 Feasibility study on introducing
e-procurement to Mongolia is conducted by Korean
Government;
• November, 2007 Request for financing Phase 1 of
introducing e-procurement to Mongolia submitted to
KOICA;
• Waited for electronic infrastructure establishment;
• In July 2010, MOU between two countries were
signed, establishment of e-procurement system
project is ready to be launched;
• The project will continue for period of 10 months
starting from November 8, 2010;
 E-procurement
• The purpose
– one stop bid system; automation of
business process; and public information
disclosure via Internet;
• By developing e-procurement system,
– e-shopping mall system,
– e-bidding system,
– e-catalog system,
 E-procurement
• Expected results of the e-procurement system
– improvement of transparency and efficiency;
– acceleration of government digitalization;
– cost reduction;

• By 2013, e-procurement system will implement and

all procurement transactions will be done by online
form.
 Public Procurement Training
Basic 2 reasons:
Inadequate competence of
implementing public institutions
Increased level of Public awareness
on Public Procurement of the
Government
 Public Procurement Training

• 2000-2006 MOF providing a training

• 2006- present Training institutions are

providing training
 National program for human resource
development of Public Procurement
2007-2010 (National Program)
 Objective
Develop the system to train a capable professional human resource to
conduct public procurement at the national level

 Focusing on:
 Identify the strategy and desired outputs in the med term
 Ensure the participation of civil society and universities and other NGOs
 Accreditation of training institutions that provides permanent
professional training program with certificates
 Enhancing the knowledge and skills of all parties involved in public
procurement including suppliers and contractors
 Public awareness programs to improve right perception and
understanding on public procurement
 Cooperating Institutions
(under MOU)
• Procurement Development Center NGO-MOU

• Academy of Management
(an Implementing agency of Mongolian Govt.)

• Mongolian National University

• University of Science and Technology

Department of Management
 How is the training quality ensured?

Via MOU regulating

• Responsibilities parties:
– Technical support to training institutions by MOF
– Training of trainers by MOF
– Exchange of information
– PPD is responsible for taking tests and issuing certificates from
trainings held by institutions
• Basic requirements for MOU establishing
– Technical: (have at least one training room equipped with
adequate training tools)
– Human: (at least 2 teachers trained issued B5 training) etc.,.
 Types of Public Procurement Trainings

 A1 One day (legal information dissemination)

More than 2000 certificates issued

 A3 Three days (Basics of Public Procurement)

2600 certificates issued

 B5 Five Days (Training of Trainers)

91 certificates issued
 Additional regulations made in accordance with
ensuring of Public Procurement knowledge

• Regulation on short -term training and certificate issuing in

order (reviewed in 2008 and 2010)

– Major recent amendments:

• Members shall attend repetitive course after expiry of
3 year validity period of the Certificates
• Evaluation committee head and secretary must own
A3 Training Certificate for mandatory
 In the following three years (2011-2013)
 We are working to improve efficiency of the Public Procurement step by
step with cooperation with World Bank, Asian Development Bank and
KOICA (Korean International Cooperation Agency)

We started the following works and those will be the leading tasks of the
following three years.
1. To improve and develop Public Procurement Law and other
relating rules and instructions.
• Blacklisting
• Performance monitoring, strenthened Accountability
• Further decentralization
2. To implement e-Procurement (e-Shopping, e-Bidding) system
3. To continue develop National Training System
• Online training program
• Short term training program for private sector
• University degree program on Procurement
• Support for training institutions