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Study on Nepal Public Procurement Act 2063

Public procurement is the business management function that manages the entire process of acquisition of external resources in an efficient and economic manner.  

The strategic implication of public procurement South Asian Countries. 

Data shows the USD 300 billion is fall under the public procurement which is 25-30% of GDP in summary. The country wise public procurement analysis shows that Bhutan is spending 25% of annual budget. Maldives USD 2.2 billion, Bangladesh USD 3 billion and India USD 30 Billion per year expenditure records. 

Nepal context: 

Criteria for determining the eligibility of employees for procurement activities

Public Procurement Act, 2063 Related to Sub-section (2) of Section 7 of 

1 July 2021, Secretary level decision 

Public procurement is very important discipline. It halps to accelerate the economic development of the country and prone to making corruption practising as well.
We have many examples of development projects are plagued by implementation delays, cost overruns, and even bitter experiences of the unfavourable procurement process of PPEs & medical supplies during the pandemic.
At the core of such recurrent hurdles is inefficient public procurement, range of factors contributes, among them one of the critical factors is lack of required technical human resources to manage procurement and contracts. Hence, in order to address such gaps, this policy amendment with setting "Criteria of the eligibility of employees for procurement activities" is good sign and output of continuous improvement mindset.
Moreover, government could invest more on providing professional training and growth opportunities for employees in public procurement which may helps to re-engineering the business process, develop the mindset of continuous improvement and enabling risk management at the workplace.


Reference

https://www.prasashan.com/2021/07/01/244582/?fbclid=IwAR3MJzwLG4UdZt7CNBXscZLueDQKENfhUcysYWQMuDWb0fkGDbWBEEWElKM 


This is a good initiation from government side, that continue identifying the limitation in the public procurement policy and addressing them in appropriate way is a part of continuous improvement.

Apart from range of other factors, mainly two are major factors contributing in prolonging the process, delaying in delivery and creating space of corruptions and fraud. 

1) Lack of required technical human resources to manage procurement and contracts in public procurement agencies. 

2) Lack of sufficient resources and capacity of the contractors in country. 

As a result, we are experiencing big projects have been awarding to international contractors even though those projects has not categorised as high-tech specification but lack of experienced and capable contractor in country. At the time of execution, due to lack cooperation sub-grantee, inability to understand the labor market, import and payment hassles are factor of slowing down progress and increase the total cost of ownership eventually. This is biggest obstacle of overall economic development. 

How to enhance the capacity of local contractors is challenging but it can move ahead with "give and take" approach between government and contractors. For example, revising the policies as appropriate without comprising risk of fraud and contractors could focus to invest on developing skilled human resource, exposure in neighboring countries and adopting "learning by doing" when getting sub-contract from international contractors. 





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