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World Bank Supports Effective Public Procurement in Central Asia

Available in: Pycckuú

Contacts
Dilshod Karimova (992-37) 221 07 56
dkarimova@worldbank.org

Dushanbe, April 28, 2008 - The Central Asia Regional Public Procurement Forum is being held in Dushanbe from April 28 to 30, 2008. Delegates from Armenia, Azerbaijan, Georgia, Kazakhstan, Kyrgyz Republic, Tajikistan, and Turkmenistan representing public procurement officials, civil society organizations, and international and bilateral donor agencies are discussing main issues in reforming public procurement in Central Asia countries and develop recommendations for further improvement of using public funds. This fourth regional procurement forum sponsored by the World Bank builds on the previous forums which have been held in Central Asia since 2005.

An efficient and effective public procurement system is one of the main driving forces behind a country’s development efforts and can contribute substantially towards strengthening its economy.  On the other hand, a weak public procurement system will surely cause serious losses of public funds and adversely impact the country’s economy and development. Most countries spend about 10 to 15 per cent of their GDP on public procurement of goods, works and services.  Given that each year billions of dollars are spent on public procurement, governments can realize substantial amounts of financial savings through the use of a transparent, fair, economic and efficient public procurement system.

"In the absence of any request to the Bank from countries in Central Asia, and elsewhere, to borrow funds for improving their public procurement systems, the Bank has been exploring the possibility of grant funds for this purpose. I hope that this forum will provide an excellent opportunity for both the country public procurement representatives, and donors, to explore these possibilities," – said Ms. Chiara Bronchi, the World Bank Country Manager for Tajikistan.

The World Bank’s support to Central Asian countries in establishing sound public procurement systems started soon after their independence, through advice and grant based financial assistance.  The first projects implemented in Kazakhstan, Kyrgyz Republic, Tajikistan, and Uzbekistan supported preparation of the draft public procurement laws, standard bidding documents, creation of specialized procurement agencies, and training of the public officials in procurement.  A diagnostic tool called “country procurement assessment report” provided the governments with feedback on functioning of their public procurement systems and recommendations for future improvements.

After emerging from a civil war, Tajikistan took a commendable step in 1997 in introducing its first public procurement law, with the technical and financial support of the World Bank.  The 1997 law provided for a partially decentralized public procurement system, and an oversight body. In 2002, the Government of Tajikistan and the World Bank, as part of the Government efforts to improve governance in the country, conducted a comprehensive assessment of the public procurement system in the country.  Following upon the recommendations of the Country Procurement Assessment Report, and with the technical and more financial support in the form of a grant from the Institutional Development Fund (IDF) of the World Bank, a new law was drafted.  The new law was approved by the Parliament in February 2006 and is now effective.  This law provides for a full but gradual decentralization of the procurement responsibility to ministries, committees, oblast administrations,  municipalities, etc., at all levels of government, and includes provisions for a transparent, fair, competitive and economic procurement, so essential for the efficient use of public funds.

The implementation of the new public procurement law would necessitate substantial amendments to subsidiary regulations dealing with the detailed rules for carrying out this law. Apart from these activities, the IDF grant supports strengthening of the Public Procurement Agency.


For more information on public procurement please visit:
http://www.worldbank.org/procurement




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