Cambodia : Country Procurement Assessment Report
This Country Procurement Assessment Report (CPAR), prepared by the Bank in close cooperation with the Asian Development Bank (ADB), is a contribution to the Government's ongoing public sector reform program. It analyses strengths, and weakness...
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| Format: | Country Procurement Assessment (CPAR) |
| Language: | English en_US |
| Published: |
Washington, DC
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2004/09/5155529/cambodia-country-procurement-assessment-report http://hdl.handle.net/10986/14331 |
| Summary: | This Country Procurement Assessment
Report (CPAR), prepared by the Bank in close cooperation
with the Asian Development Bank (ADB), is a contribution to
the Government's ongoing public sector reform program.
It analyses strengths, and weaknesses in current practices,
and outlines an action plan to bring public procurement
further into line with internationally accepted, best
practice. With regard to public procurement, Cambodia
received technical assistance from ADB in 1994-1995,
resulting in well-drafted legislation, rules and guidelines,
designed to create a coordinated, sound procurement
framework in line with good international practice. Through
a number of executive decisions made over the ensuing years,
however, implementation of the framework has deviated. This
has resulted in a fragmented approach, without a focal point
for overall monitoring, and resulting in considerable
decision-making power in the hands of the Ministry of
Economy and Finance (MEF). This CPAR focuses on actions that
need to be taken to re-assume the direction intended by the
framework, for development of a transparent, public
procurement environment, with monitoring carried out by a
single agency. The report reviews the status of knowledge of
procurement procedures, and the harmonization of
donor-funded projects, in line with the private sector
participation. It assesses fiduciary risks, lessened
somewhat since competitive bidding was introduced in stages
over the past 18 months. However, the fiduciary risk is
still rated high, on account of existing corruption, with
low public sector remuneration creating a climate for rent
seeking; weaknesses in the existing regulatory framework;
the absence of a sovereign procurement law with a single
focal point for monitoring and enforcement; the involvement
of MEF in the day-to-day procurement process, which
duplicates work, and mitigates against the development of
procurement expertise in line agencies; and, the loophole in
the 1998 BOT (Build-Operate Transfer) Sub-Decree, that has
created a virtually closed environment in the awarding of
BOT/concession contracts. Recommendations include, as a
highest priority, to hold tripartite discussions between the
Government, ADB, and the Bank, in order to agree on an
Action Plan for implementing the recommendations of the
CPAR, as well as identifying sources of funding for the
identified activities. Moreover, the 1995 Sub-Decree needs
to be quickly strengthened, while a sovereign procurement
law should be enacted. The report specifically stipulates
the current practice of awarding concession contracts,
without competition, and before carrying out feasibility
studies, should cease. In line with a comprehensive training
program, there should be a progressive move towards
establishing a single agency that would monitor, and oversee
all public procurement, act as an advisory and resource
center, and implement procurement training programs. |
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