04/19/23 RPPA 1

PUBLIC PROCUREMENT IN RWANDA AND ITS

CHALLENGES

Presented By:

RPPA

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Background to Procurement Reform

The Ministerial Order nominating members of Independent Review Panels he Royal Decree of 25/2/1959 relating to public tenders;Establishment of the National Tender Board in 1997The Presidential Order Nº28/01 of 19/07/2004 establishing public procurement procedures;The Ministerial Order N° 002/06/10 MIN of 07/08/2006 fixing the thresholds for public procurement entities,The Law N° 12/2007 of 27/03/2007 on public procurement,

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Ministerial Order nominating members of Independent Review PanelsLaw N° 63/2007 of 30/12/2007 Establishing, determining the Organisation, Functioning and Responsibilities of the Rwanda Public Procurement Authority,

Ministerial Order N°001/08/10/Min Of 15/01/2008 Establishing Regulations on public Procurement and Standard Bidding Documents;

SBDS: Large works, Small works, Goods, Consultant services (big assignment & Small services)

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Background (cont’d)

The Ministerial Order N° 002/08/10 MIN of 15/05/2008 fixing the thresholds for public procurement entities

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KEY FEATURES OF THE PROCUREMENT LAW

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FUNDAMENTAL PRINCIPLES

• Transparency,• Competition, These fundamental • Economy, principles are the base

of• Efficiency, Rwanda P. Procurement • Fairness, and system and cornerstone• Accountability   of the PPL.

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...

• Accessibility of Procurement regulation,SBDs:www.ntb.gov.rw, www.primature.gov.rw

• Procurement Planning• Communication in Public Procurement• Record of Procurement Proceedings

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…• Auditing the Conduct of Procurement

Proceedings and Contract execution • Currency used in bidding • Joint ventures • Packaging tenders (lots)• E-Public Procurement• Language used in Public Procurement

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Provisions on conduct for procurement officials

• Anti-corruption measures

• Conflict of interests

• Confidentiality

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Debarment of bidders

• Debarment : false information (2) years collusion (3) years fraudulent pricing, connivance (3) years poor or non-performance (1) year• Procedures for debarment

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ORGANIZATION OF PUBLIC PROCUREMENT

ORGANS

• Rwanda Public Procurement Authority

• Independent Review Panels • Establishment of a Procurement Unit

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RWANDA PUBLIC PROCUREMENT AUTHORITY (RPPA) ORGANISATION

• Board of Directors - Members from civil society

- Members from the private sector - Members from the Public

institutions - Director of RPPA as Secretary of

Board

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RPPA Organisation…..

• Director of RPPA: Daily administration of the institution

• Core Departments:- Procurement Dept

- Monitoring & Audit Dept - Legal Dept

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INDEPENDENT REVIEW PANEL

• Independent• National & Local Panels:• National Panel appointed by Minister of

Finance• Local panels appointed by the local

administration• Composition of the members:

- Members from the Civil society- Members from the Private sector- Members from Public institutions

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Organs And Mechanisms For Review

• Right to review (bidders’ right)

• Review by the procuring entity

• Independent Review Panels :

District levelNational level

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Acceptance of the request for review

• 1° Identification of the complainant: names address and telephone number;

• 2° Identification of the procuring entity;• 3° Decision against which the review is

requested;• 4° Date on which the decision was taken and

when the complainant became aware of it• 5° The organ to which the review is addressed;• 6° Signature or thumb print of the applicant;• 7◦ Payment slip for appeal fee• 8◦ Copy of trading licence

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ESTABLISHMENT OF THE PROCUREMENT UNIT

(DEPARTMENT)• Provided for in the new law to be set

up in every institution & local administration

• The current status is a Tender Committee in every institution & local administration composed of members from other departments of the institution and a recruited procurement officer

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Acceptance of the request for review

• 1° Identification of the complainant: names address and telephone number;

• 2° Identification of the procuring entity;• 3° Decision against which the review is

requested;• 4° Date on which the decision was taken and

when the complainant became aware of it• 5° The organ to which the review is addressed;• 6° Signature or thumb print of the applicant;• 7◦ Payment slip for appeal fee• 8◦ Copy of trading licence

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SANCTIONS FOR THE VIOLATION OF PUBLIC

PROCUREMENT RULES

• Violation of Public Procurement rules and code of conduct : (6-12 mths imprisonment) and 500,000 Rwf

• Splitting of tenders and violation of debarment rules: Disciplinary sanctions and a fine of 300,000Rwf

• Influence peddling in public procurement: (6-12 mths imprisonment) and 500,000 Rwf

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WAY FORWARD FOR PUBLIC PROCUREMENT REFORM IN

RWANDA

• PPR TF (Public Procurement Reform Task Force)

• Road map & Strategic plan• RPPA (Rwanda Public Procurement

Authority)• Transition phase of three year after the

publication of the law establishing RRPA in the Official Gazette

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DEVELOPMENT OF A STRATEGICPLAN FOR PROCUREMENT CAPACITY

BUILDING IN RWANDA 2007-2010

• Pillar I: Reform of the legal and statutory framework;

• Pillar II: Strengthening the Capacity of Central Institutions;

• Pillar III: Improving operations and encouraging private sector participation;

• Pillar IV: Improving the Integrity of the System: Audits, appeal and corruption fighting.

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CAPACITY BUILDING

• Technical assistance in procurement• Long term formal training leading to a

diploma delivered by a Rwandan higher education Institution (in the pipeline)

• Short term training, seminars and workshops

• Establish professional norms and standards (in the pipeline);

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CAPACITY BUILDING…

• Propose a system of performance evaluation;

• Specify recruitment and promotion criteria ;

• Put in place a program of permanent training;

• Ensure existence and updating of standard documents ;

• Ensure generalized and compulsory use of standard documents.

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CURRENT CHALLENGES TO PUBLIC PROCUREMENT IN

RWANDA

• Capacity building: - Lack of training institutions - Lack of professionalism

and certification in the procurement discipline

- Frequent change of jobs by procurement officers

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CURRENT CHALLENGES TO PROCUREMENT IN

RWANDA…

• Review mechanism• - There is a culture of the bidders

not contesting the decisions of the procuring entities (esp. at local administration)

• - Lack of follow-up mechanism to verify whether the decisions of the IRP are followed by the PE

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TRANSITION PHASE: SUMMARY ON THE COMPETENCE THRESHOLD

PROCURING ENTITIES

MoD & NEC RPPA

≤ 100,000,000 Rwf185, 000 USD

≤ 150,000,000 Rwf278, 000 USD

>200,000,000 Rwf>370, 000 USD

[100,000,000 -200,000,000 Rwf]185, 000- 370 000 USDPrior review/non objection- RPPA

[150,000,000 -200,000,000 Rwf]278, 000-370, 000 USDPrior review/Non objection-RPPA

-

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RPPA Mission after the transition phase of three years after the

publication of the Law establishing RPPA

• Regulation• Monitoring • Capacity building/Training• N.B: No more procurement at

central level

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Good procurement=Development

Thank you