NEPAL

Country Public Procurement Profile Survey (with E-Government Procurement Overview)
COUNTRY Nepal
Respondent Agency Public Procurement Monitoring Office, Red Cross Marga, Tahachal, Kathmandu, Ph. 977-1-4282639
Date of First Submission Monday, May 30, 2011
Date of Last Update Sunday, October 16, 2011
Part A.  Country Public Procurement Profile (Only those answers selected by the respondent from a multiple choice menu would appear below.)
1 Does your country have a central Public Procurement Authority (PPA) with legal authority through legislative enactment, executive decree or administrative regulation to act as functional and normative body in public procurement?
a.      Yes
2 The PPA’s mandates involve the following responsibilities (please select as many as applicable, one per line):
c.       procurement oversight and post reviews
d.      procurement audit
e.       procurement complaint review
f.       monitoring and evaluation at country, sector and procuring entity level
g.       professional advise and guidance in public procurement
h.      procurement capacity development and training
i.        quality assurance and accreditation for procurement training
Others (please specify):
3 The PPA reports to:
b.      Prime Minister’s Office
Others (please specify):
4 Number of people employed by the PPA: (Please provide an organizational chart of the PPA and email address for communication, if possible)
d. 15 and more
Email address for communication with PPA:  info@ppmo.gov.np
5 Does PPA have a website?
a.      Yes
Link to PPA website:  www.ppmo.gov.np  and E-procurement portal is:  www.gepson.gov.np
6 The PPA website covers the following areas (please select as many as applicable, one per line):
a.       procurement related regulations and documents
b.      news, events and policy initiatives related to public procurement
f.       specific opportunities and notices for bidders
g.       posting of contract award with name of the winning bidder and contract value
Other functions (please specify):
7 Do you have a public procurement law or any other regulatory act with legislative power? (Please provide a link or a scanned copy of its English version.) If yes, which of following are true (please select as many as applicable, one per line)?
a.       the scope of the law covers all procurement handled by public entities including foreign funded procurements but excluding goods and services for national security purpose only
b.      the scope the law excludes entire defense procurement
g.       the law establishes a fully decentralized system for procurement decision making with no prior review (i.e. each procuring entity is fully responsible for its procurement)
k.      the law mandates standardization of procurement practices mandating use of common procedures and standard bidding documents and forms
l.        the law currently provides principles and general procedures  that makes provision for the  use/adoption of e-procurement
m.    the law describes principles for national registration and classification system for contractors as not a pre-condition to participate in biding process or to qualify for specific contracts.
o.      the law provides for an administrative review mechanism for complaint that allows bidder to challenge procuring entity’s decision before filing for judicial review to the court
Link to public procurement law, if any:  www.ppmo.gov.np/act_regulations.php
8 Do you have a strategic plan or reform agenda for developing the procurement system in your country? (Please provide a copy or link)
b.      Yes, this is a mid term procurement strategy with updated annual plan which is consistent with the government development objectives
Others (please specify):
9 What kind of initiatives and assistance in your view is needed to improve your public procurement system in the near future? [Please select your five most important initiatives among the choices, one per line.]
a.       Conduct an overall assessment of the effectiveness of the country’s public procurement system
e.       Create a single window for procurement related information and statistics led by PPA and connect with e-procurement system
f.       Launch communication campaign to improve public awareness of country’s public procurement policy
h.      Analyze the structure and business practices of PPA and support efforts to improve its capacity and performance
i.        Reform public procurement strategy to further the development of small and medium enterprises through procurement
Others (please specify):
Additional notes, if any:  The priority list is : (h), (e), (a), (f), and (i)
10 What is the size of the public procurement of your country? Please select the closest corresponding values based on most recent available information or your rough assessment?
I. Average annual procurement under national and local budget
f.    more than US$ 1 billion
II. Average annual procurement by State Owned Enterprises (those who are subject to the procurement regulations)
f.    more than US$ 1 billion
III. Average annnual procurement under Official Development Assistance (Donor-funded projects)
e.    between US$ 500 million to 1 billion
Part B.  e-Government Procurement Planning (Only those answers selected by the respondent from a multiple choice menu would appear below.)
1 Has your government formed or implemented a concrete plan for development of e-Gp?  Please select only one answer.  (If yes, please email a copy of the plan to mkhaltarpurev@adb.org).
c.   Yes, both a and b are true
2 Which of the following best describes the functionality of your planned e-Gp initiatives? (Please select as many as applicable, one per line.)
a.       a single website that consolidates and publishes all national information and policies related to public procurement
c.       e-publication system for real time procurement notices
d.      e-publication of procurement awards and results
e.        system for bidders to download bidding documents and RFPs in response to the published procurement notices
f.       e-bidding system for bidders to submit their bid or proposals online and observe the online public opening of the bid
Note:  The copy of the plan (3-year Strategic Framework for Public Procurement of Nepal) can be downloaded from the PPMO website and the link is: http://www.ppmo.gov.np/leftmenu_page.php?menu_id=22
3 Do you have plans to implement any new e-Gp system at the national level? (Please select as many as applicable, one per line.)
f.       e-bidding system for bidders to submit their bid or proposals online and observe the online public opening of the bid
g.       e-contracting system which allows award notification and contract signing through the system
h.      e-payment system which allows invoicing and payment through the system
i.        online reverse auctions or electronic negotiations
j.        online purchasing from e-catalogs or supplier marketplace
k.      electronic evaluation of bidders technical and financial proposals
l.        electronic supplier registration system
n.      System for receiving bid securities or guarantees
4 Does the scope of your e-GP plans include the following? (Please select as many as applicable, one per line, and please provide a copy of the relevant documents if possible.)
a.    improving legal architecture to facilitate e-Gp system implementation
b.   assessing e-readiness of procuring entities through surveys and feasibility studies
c.   Obtaining/searching funding support for e-Gp system enhancement
d.    creation of necessary IT infrastructure
e.   conducting user acceptance and testing
f.    testing and obtaining relevant government agency approvals with respect to information security
h.   drafting amendments to the public procurement law and its implementing rules and   regulations to facilitate  e-Gp operations
i.   generating public awareness and conducting consultation with suppliers to promote development of e-Gp system
Note: e-GP plan is incorporated in the 3-year Strategic Framework for Public Procurement of Nepal and could be downloaded from the link mentioned above.
Part C.  e-Government Procurement System Implementation (Only those answers selected by the respondent from a multiple choice menu would appear below.)
1 General Information about the e-GP system presently in operation
a.  System Name:  Government Electronic Procurement System of Nepal (GEPSON)
b.  Website Address:  www.gepson.gov.np
c.  Administration/Operator of the System:  Public Procurement Monitoring Office
d.  Agency(s) using the System:  System is technically ready for operation, few agencies of Government such as Department of Roads are using their own softwares. After complementation of the manuals, the GEPSON will be launched.
e.  Year of launch:  2011
2 Brief description of the system in terms of coverage and main functional modules
a.  e-publication/downloading:  Yes
b.  e-bidding:  Yes
c.  e-contracting:
d.  e-payment:
e.  e- reverse auction:
f.  e-catalog purchasing:
g.  e-Guarantee/security:  Due to other technical constrains, scanned copy of bank security is being uploaded and PEs adopting e-GP are accepting those copies as e-Guarantee/security but after verification (if required).
3 Other government IT systems that the e-Gp system links to (please select as many as applicable):
Others (please specify):
4 How do the bidders input and submit their proposal/tender documents into your e-Tendering  System, if any (please select as many as applicable)?
b.      upload files
Other methods (please specify):
5 If bid evaluation is carried out online, briefly describe the process of online evaluation.
N/A
6 Is bid security/guarantee required on your e-procurement system? (Please explain briefly.)
Yes, and the procedure is:  Due to other technical constrains, scanned copy of bank security is being uploaded and PEs adopting e-GP are accepting those copies as e-Guarantee/security but after verification (if required).
7 Does the e-Gp system require specific operating system, browser?
No
8 Describe the security method (e.g. digital authentication) used in the e-Gp system.
MD5 algorithm is used for file security.
9 Are electronic and paper documents legally equivalent in your country?
Yes
10 Briefly describe the management of the e-Gp system in terms of :
a.  the business model (managed in house, outsourced etc.):  Data Server is located in the Government Integrated Data Center (GIDC), Singhadurbar and remote login is carried out by the IT Expert of PPMO in the PPMO Office, Tahachal. Data Server and PPMO are connected with adequate band-with of the internet facility.
b.  users fee for suppliers or procuring agencies (if any):  No fee is chargeable
c.  training (available programs, e-learning, manuals etc):  Manuals are available in the website (www.gepson.gov.np), Training on Public Procurement is highly prioritized by PPMO and Government of Nepal
d.  certification ( if required who issues, how):  N/A
e.  Call Center (Q&A for user requirements etc.):  Hotline is available in the office (PPMO)
f.  Self teaching (modules for user requirements):  Training kit is available in the website (www.ppmo.gov.np)
g.  Service centers (physical service centers to meet user requirements):  PPMO is located in Central Kathmandu and concerned persons can approach to the office and Citizen Charter of the Office provides the details information regarding services, documentation and contact information.
h.  Any incentives offered to encourage adoption of this system by other procuring entities:  Not Informed so far.
11 Please provide the following statistics (if available):
a. number of procuring entities legally required to use the e-Gp system: About 4000
b. number of procuring entities registered in the e-Gp system as of December 31 2010:  About 200
c. number of procuring entities that actually used the e-Gp system since its inception:  About 150
d.value of the contracts awarded in 2010  (in USD):   N/A
e. value of the contracts (awarded) registered in the e-Gp in 2010 (in USD):  N/A
f. active business (contractors and suppliers) in the country as of December 31, 2010:  N/A
g. contractors/suppliers registered in the System as of December 31, 2010:  About 150
12 How do you encourage procuring entities and suppliers to use the e-Gp system?
Government’s policy through Annual Budget and directives of the Parliamentary Committee have suggested the PEs to use e-Gp by recommending the ceiling of procurement amount.
13 Do you allow individual procuring entities to customize national e-Gp systems? If yes, in what way(e.g. use a different website design with their logo)
No
14 Are individual agencies free to use different systems to those approved at the central level? If yes, is there any central approval procedure for this?
Currently Department of Roads, Department of Irrigation etc. are using different system developed by them but after launching of GEPSON most of the PEs and those currently using different softwares will also be using this system. In that case, using GEPSON will be mandatory.
15 What are the key success factors you observe in introducing or implementing e-Gp in your public procurement system framework (please list them if any)?
a. More Transparent
b. More Secured, avoid collusion of bidders
c. Cost Effective
16 What are the major problems you faced in introducing or implementing e-Gp system under your public procurement framework (please list them)?
a. Technical Infrastructure
b. Trained Menpower
c. Hesitance to use technology
17 What approach to the e-Gp development is suitable for your country’s public procurement system and why? (Please briefly describe your answer.)  OPTIONAL
To get the e-Gp system started and operationalized, information dissemination, e-Bid submission (upload and download of bid documents), bid security (from hacking for example) and evaluation are the initial but important stages and first of all Nepal need to focus more on these steps of e-Gp where we have a long way to go.
THANK YOU!