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The E-GP Assessment and Implementation Project

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The E-GP Assessment and Implementation Project 68155 Public Disclosure Authorized BHUTAN ELECTRONIC GOVERNMENT PROCUREMENT READINESS ASSESSMENT & ROADMAP June 2007 Public Disclosure Authorized Procurement Services Unit South Asia Region Public Disclosure Authorized Public Disclosure Authorized This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not be otherwise disclosed without World Bank authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective May 14, 2007) Currency Unit = Bhutan Ngultrum (Nu) US$1 = 40.70 Nu FISCAL YEAR July - June ABBREVIATIONS AND ACRONYMS ADB Asian Development Bank AAC Anti Corruption Commission BIPS Bhutan Information & Communications Technology Policies and Strategies ICT Information and Communications Technology MoF Ministry of Finance MoIC Ministry of Information and Communications MoLHS Ministry of Labor and Human Resources PPPM Public Procurement Policy Mechanism RAA Royal Audit Authority RGoB Royal Government of Bhutan SASEC South Asia Sub-regional Economic Co-operation SME Small and Medium-Sized Enterprises UNSPSC Universal Standard Products & Services Classification WB World Bank Vice President : Praful C. Patel Country Director : Alastair J. Mckechnie Sector Director : Barbara Kafka Sector Manager : Els Hinderdael Task Team Leader : S. M. Quamrul Hasan ii PREFACE V EXECUTIVE SUMMARY ............................................................................................................... VI 1 ....................................................................................................... 1 What is E-GP? Benefits The E-GP Assessment and Implementation Project .................................................................................. 4 ............................................................................................................... 10 3.2.1 Terms of Reference .......................................................................................... 12 3.2.2 Strategy ............................................................................................................... 13 3.2.3 E-Legislation ...................................................................................................... 13 3.2.4 Outcomes ........................................................................................................... 14 3.2.5 Training ............................................................................................................... 15 3.2.6 Order of Implementation Phases .................................................................. 15 3.5.1 System access .................................................................................................. 21 3.5.2 Advertising ......................................................................................................... 22 3.5.3 Correspondence, amendments, and clarifications .................................. 22 3.5.4 Bidding documents .......................................................................................... 23 3.5.5 Submission of bids/proposals ...................................................................... 23 3.5.6 Public bid opening ........................................................................................... 23 3.5.7 Bid evaluation and contract award .............................................................. 24 3.5.8 Information security management ............................................................... 24 3.5.9 Authentication ................................................................................................... 25 3.5.10 Payment .............................................................................................................. 25 3.5.11 Supplementary and archival information ................................................... 26 3.6.1 Performance management ............................................................................. 26 ......................................................... 29 3.7.2 Use and coding of catalogues ...................................................................... 29 3.7.3 Systems for establishing price ..................................................................... 29 3.7.4 Open registration for eligible suppliers ...................................................... 30 3.7.5 On-line availability of locally eligible price quote .................................... 30 3.7.6 On-line processing of purchase orders ...................................................... 30 ......................... 30 ............................ 31 iii ............................. 31 .......................................................................................... 31 .................................................................................... 32 ......................................................................................................... 32 ............................................................................................................ 32 .................................. 33 ................................................................................................................. 33 .............................................................. 34 ......... 34 3.9.1 Development of the e-PMIS ........................................................................... 34 3.9.2 Data field requirements ................................................................................... 36 3.9.3 Supplier and government trainer ................................................................. 36 3.10.1 E-Tendering system ......................................................................................... 36 3.10.2 Document Classification ................................................................................ 37 3.10.3 Document addendum process ...................................................................... 38 3.10.4 Manage workflow actions ............................................................................... 38 3.10.5 Register contract award ................................................................................. 38 3.10.6 Electronic bid lodgement ............................................................................... 39 3.14.1 Implementation team ....................................................................................... 43 3.15.1 Technical consultant ....................................................................................... 44 3.15.2 Procurement consultant ................................................................................. 44 ANNEX 1: INTRODUCTION TO E-GP ........................................................................................ 49 ANNEX 2: READINESS ASSESSMENT METHODOLOGY AND FINDINGS ...................... 60 ANNEX 3. DRAFT E-LEGISLATION: LAW ON E-TRANSACTIONS, E-SIGNATURES & DATA MESSAGES ......................................................................................................................... 73 iv PREFACE Date and Basis of Report This report details the findings, conclusions and recommendations of a World Bank (WB) team that visited Thimphu, Bhutan, during February 12-18, 2007, in order to prepare an electronic Government Procurement (e-GP) Readiness Assessment and Roadmap report. The readiness assessment and roadmap for implementation are the first two components of the E-GP Assessment and Implementation effort to assist the Royal Government of Bhutan (RGoB) develop an e-GP Implementation Plan. The report was prepared for the RGoB’s Ministry of Finance under the funding of a Japanese Consultancy Trust Fund. The contributing reports on e-GP Readiness and the Roadmap were prepared by Nippon Koei Co Ltd and International Governance Solutions. The third component of this e-GP initiative support is to convene stakeholders to a workshop, to be staged early in the next fiscal year, where they will review and discuss the assessment and the roadmap, agree how these should be finalized, and draft an indicative/draft implementation plan for the government. This work is part of a wider ongoing initiative for public procurement reform, which the RGoB is undertaking with WB and other donor funding, which also looks into areas concerning; (i) revisions to the legal framework (i.e. the procurement manual and supporting bidding and consultancy documents), (ii) procurement complaints mechanisms, (iii) the establishment of a public procurement policy mechanism, and (iv) procurement capacity building through existing national training institutions. Acknowledgements Thanks are given to some 26 ministerial secretaries, senior executives, managers, and specialists from 19 public and private sector organizations, who made their time and expertise available for the assessment and discussion meetings. 1. Department of Tourism 11. OAG 2. Bhutan Infocomm and Media Authority 12. Royal Monetary Authority 3. Construction Development Board, Ministry of 13. Planning Commission Works and Human Settlement 4. Department of Revenue and Customs 14. Ministry of Foreign Affairs (2) 5. Ministry of Home and Cultural Affairs 15. Anti Corruption Commission (2) 6. Ministry of Labour and Human Resources (3) 16. Royal University of Bhutan (2) 7. Ministry of Finance 17. E-Druk Consultancy 8. Bhutan Telecom 18. Lhaki General Stores 9. Ministry of Information and Communications 19. Bhutan Chamber of Commerce (3) and Industry Special thanks go to Mr. Dhenden Dhendup, Deputy Secretary, Ministry of Finance, and Mr. Tenzin
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