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Draft Report:

TRAINING ON PUNJAB PROCUREMENT RULES 2014

UNDER DLI-2 (PCGIP)

Prepared by: Adil Sohail

Research Associate, CPU Rawalpindi

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Table of Contents An Overview of Punjab Cities Governance Improvement Project (PCGIP) ............................................... 3

Date and Venue of Workshop ................................................................................................................... 3

Training Team ........................................................................................................................................... 3

Agenda ...................................................................................................................................................... 4

Participants ............................................................................................................................................... 4

Proceedings of Training-Workshop .......................................................................................................... 4

Minimum response time for procurement advertisements ................................................................. 7

Tender Documents at PPRA's Web site ................................................................................................ 7

Date of displaying Tender on newspaper/website. .............................................................................. 7

Feedback ................................................................................................................................................... 8

Annex A ..................................................................................................................................................... 9

Annex B ................................................................................................................................................... 10

Annex C ................................................................................................................................................... 11

Annex D ................................................................................................................................................... 12

Annex E ................................................................................................................................................... 13

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An Overview of Punjab Cities Governance Improvement Project (PCGIP)

This workshop is organized under series of capacity building events of Punjab Cities

Governance Improvement Project. Government of the Punjab, with the financial

assistance of the World Bank, is implementing this project with US$150 million five-

year results based Specific Investment Credit. The project is focused at

strengthening of systems and governance improvement for enhanced service

delivery and is being implemented in five large cities .i.e. City District Governments

(CDGs) of the Punjab which include Faisalabad, Gujranwala, Lahore, Multan and

Rawalpindi. The project utilizes a results based approach and is consistent with this

focus. The disbursement decision is based on achievement of pre-specified results,

referred to as Disbursement linked Indicators (DLIs), determined in partnership

with the Government of Punjab.

There are total seven DLIs and each DLI has yearly targets. Each CDG will get its

share from the grant on yearly basis upon achievement of the yearly targets of the

DLIs. The DLI-2 Procurement is targeted towards “Good procurement performance

practices operationalized in CDGs through implementation of the provincial

procurement rules”.

Date and Venue of Workshop

The training-workshop took place on 25 October 2014 at the Jinnah Hall, Potohar

Town in City District Government Rawalpindi. The training team arrived at the

venue one day earlier on 24 October 2014, in order to attend meeting for fine-

tuning of the agenda and coordination/facilitation.

Training Team

The members of the training team were Mr. Shahid Hussain, Managing Director

PPRA and Mr. Navid Khalid, Senior Procurement Specialist, Urban Unit Lahore and

CPU Rawalpindi team for support.

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Agenda

The training was devised into following draft agenda points, which are as follows:

Opening remarks and introduction

Principles of Procurement

Procurement Cycle & Planning

Specification and Bidding Documents

Prequalification Process

Bidding Process

Procedures of Open Competition

Evaluation of Bids and Grievance redressal system

Alternative Methods of Procurement

Disqualification & Blacklisting

Adjustments had to be made to the agenda, in light of various considerations, such

as the desire of the participants to devote more time on different topics and time

required to respond the queries of the participants.

Participants

The training-workshop was attended by thirty seven (37) personnel’s from different

bodies of District Rawalpindi i.e. Commissioner Office, DCO Office, EDO F&P, EDO

W&S, Health, MS, Agriculture, Education, Community Development, Sports, Civil

Defence, Environment, Water and Sanitation agency and Rawalpindi Development

Authorities. List of Participants is attached in Annex – A.

Proceedings of Training-Workshop

Mr. Navid Khalid welcomed the participants and appreciated the presence of

representatives of all City District Government and development authorities. After

that, Mr. Shahid Hussain (MD PPRA) were invited to start the formal proceedings of

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the workshop. Mr. Shahid Hussain thanked the participants for giving him the

opportunity on this forum of PCGIP. He also stated the importance of

implementation of procurement rules for “Good Governance” in Punjab.

Mr. Shahid Hussain started the session with evolution of PPRA regulatory laws and

regulations from Purchase manual to Punjab procurement rules 2014. After,

creating base regarding importance of PPRA law, the session has established

existing understanding of audience about word “procurement” and explained that

how whole economy is effected and planned through procurement planning. The

role of PPRA by giving the example of Rawalpindi Metro Project. How PPRA has

generated transparency in allotment of contracts to different firms. The Punjab

Procurement laws are very powerful no authority in the province can challenge this

law in any circumstances. However, law has given flexibility to deal emergency and

to create the tradeoff between objectives of Government entities. The Principles of

Procurement planning has been discussed i.e. economy, efficiency, transparency,

accountability, competitiveness and fairness. He elaborated each element and how

good procurement planning is essential to optimize the contribution of the

procurement function towards achieving the overall goals of the Government

entities.

MD PPRA then described the procurement cycle by elaborating planning and

designing specifications, pre-qualifications, solicitation of bid, bids opening and

evaluation, contract award, Grievance redressal, Payments and contract

administration. The audience has raised questions regarding composition of

procurement planning committee, Grievance redressal committee and efficient

management of grievances, which were answered. While discussing the pre-

qualification phase Mr. Saqib Hussain from WASA has raised question that how

standardization leads toward inefficient competition in the market by taking the

example of railway locomotives purchased from China. Resource person has given

very good example regarding work and services department of China and Turkey

which are similar to current context of District Rawalpindi. He created link of PPRA

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rules and perfect competition in market and its benefits for businesses, economy

and Government entities. A practical situation was discussed where different

personnel’s from audience are of the view that procurement is time taking but

later-on agrees that how these procurement practices have ultimate benefits for all

stakeholders.

After tea break MD PPRA has started comprehensive session on Assessing eligibility

and qualification of contractors, managing bidding process, bidding procedures and

alternative methods of procurement. Benchmarks have been told which triggers

different modes of procurement i.e. petty purchases, petty purchases through

quotation, direct contracting and negotiated tendering. Procedures of procurement

of services are different in terms of award, execution and evaluation of contracts.

Different bidding procedures; Single stage – One envelope Procedure, Single stage-

two envelope procedure, Two stage bidding procedure, two stage-two envelope

bidding procedure and their applications have been elaborated in detail.

Perhaps the most interesting part of the workshop was after lunch break when

different case studies has been discussed in proceedings. A case states that how

education department initiated the process for procurement of Laptops and due to

non-compliance of contractual obligation procuring agency has issued orders for

blacklistment of that particular firm. This blacklistment of firm has affected its

goodwill very badly and different firms have faced severe consequences in this

regard. Another case study has been discussed regarding non-compliance of

procurement procedures in health department. Upon completion of these case

studies questions have been asked by the resource person. MD PPRA has also

shared his personal experiences during his 27 years’ service tenure which depicts

that how law has generated transparency for national economy and no authority in

province of Punjab is able to bypass this law. In reading material case studies,

approval mechanism, Performa for financial proposal evaluation, Performa for

evaluation of report, format for annual procurement, procurement calendar have

been shared with audience.

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During workshop many informative questions has been raised by audience, which

includes topics like:-

Minimum response time for procurement advertisements

The minimum response time shall not be less than fifteen (15) days for national

competitive bidding and thirty (30) days for international competitive bedding. The

Procuring Agencies can increase the response time depending upon nature of

procurement.

Tender Documents at PPRA's Web site

Online, by uploading on website after, PPRA will issue user ID and password in this

regard OR by sending Tender documents alongwith deposit slip can be sent by

Post/Courier to PPRA OR You can send your tender documents as attachment with

file extension "PDF" (Acrobat Reader File) alongwith deposit slip to email

address tender@ppra.punjab.gov.pk for uploading of tender by PPRA.

Date of displaying Tender on newspaper/website.

Under Rule 14 of PPRA Rules 2014 response time shall be calculated from the

publication of advertisement in a newspaper or on the website, whichever is later.

Mr. Shahid Hussain has shared proceedings of different higher level meetings with

the audience. Government of Punjab has a vision for implementing procurement

rules in Pakistan, and its future prospect by linking the whole system with E-

Governance. He shared his contact details with the audience, that in case of any

guidance and query regarding the procurement rules 2014, you can contact directly

or through Urban Unit Head office, Lahore or the City Program Unit (CPUs) that are

established in five cities (Lahore, Faisalabad, Rawalpindi, Gujranwala and Multan)

for the facilitation of cities in successful implementation Procurement rules. He also

suggested that before making any query read all material available on website. In

the end Dr. Rafique from Health department has expressed his gratitude MD PPRA

and Urban unit Team for arranging this effective workshop, on behalf of audience.

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Feedback

Such trainings can boost productivity, increase transparency and accountability in

organizations. Below are some comments made by the participants in response of

feedback required by CPU team.

1. “The training is very informative, however such session must be arranged on

regular basis with special focus on case studies”.

Qurat ul aen Fatima,

District Officer Planning

Annex B

2. “I have learned a lot regarding preparation, rules, procedures, execution,

prequalification which would be very beneficial in carrying out my official

duties. It is requested that workshop regarding SOPs of procurement rules

may be arranged on regular basis”.

Ahmed Manzoor

Director, Water Supply, WASA

Annex C

3. “Well presented, very elaborate and comprehensive, and should be organized

regularly. It is suggested to post different case studies on website for further

learning”.

Dr. Mazhar Azam

District Officer (SWM), Rawalpindi

Annex D

4. “The participants of the workshop must be relevant to procurement. Overall

impact of the workshop for awareness of staff is Good”.

Zahid Irshad

DDO (B), W&S, Rawalpindi

Annex E

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Annex A

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Annex B

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Annex C

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Annex D

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Annex E