Public Procurement in the Maldives: Overview of Regulations and Framework
Dive into the legal and institutional framework governing public procurement in the Maldives, covering key aspects like legislation, current practices, challenges, and institutional responsibilities. Explore quick facts about the Maldives and understand the regulations applicable to government procurement.
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Presentation Transcript
Public Procurement in The Maldives Ahmed Ahmed Mujuthaba Mujuthaba National Tender and Project Management National Tender and Project Management Ministry of Finance and Treasury Ministry of Finance and Treasury Fourth South Asia Region Public Procurement Conference: Sri Lanka
Key parts of the presentation Key parts of the presentation Introduction and quick facts Maldives Legislative and institutional framework Current practices on procurement e-GP readiness and implementation status Challenges
MALDIVES MALDIVES Quick Facts Quick Facts Land Area Land Area approximately 300 km approximately 300 km2 2 (1900 Islands) (1900 Islands) Population Population approximately 0.4 million approximately 0.4 million Main Industries Main Industries Tourism, Fishing, Construction Tourism, Fishing, Construction Currency Currency Maldivian Rufiyaa (MVR) Maldivian Rufiyaa (MVR) Per Capita GDP Per Capita GDP USD 3,930 (March 2014) USD 3,930 (March 2014) Inflation (CPI): Inflation (CPI): 1.7% (July 2015) 1.7% (July 2015) Unemployment Unemployment 11.6% Debt to GDP Debt to GDP 70% (2014) Heavily depend on Imports Heavily depend on Imports Fuel, Local consumptions, Building materials Building materials Main Export Main Export Fish products 40% of total exports Fish products 40% of total exports Exchange Rate fixed to US Dollar Exchange Rate fixed to US Dollar USD 1 = MVR 15.42 11.6% 70% (2014) Fuel, Local consumptions, USD 1 = MVR 15.42
Legal Framework for Public Procurement Legal Framework for Public Procurement Public Finance Law- Law No. 3/2006 Passed by the parliament Covers public expenditure Public Finance Regulation Issued by Ministry of Finance and Treasury (Chapter 10) SBD Issued by NTPM Issued by the Public NTPM Guidelines and Manual
What Do the regulations apply to? What Do the regulations apply to? All procurement by government agencies using public money Public enterprises are not covered Exceptions for; Defense or national security Grants/credits where donor rules apply Private financing and concessions
Institutional Framework Institutional Framework- - Who does what Who does what NTPM Over MVR 2.5 million Lead Government Agencies Depending on the procurement and it s size Ministry of Finance and Treasury Procurement policy Regulations Oversights Other Government Agencies Less than MVR 2.5 million
Approval levels Procurement officer low value contracts Up to MVR 2,000 Finance Executive low value contracts Between MVR 2,000 to MVR 35,000 Agency Tender/Bid Committees Between MVR 35,000 to MVR 2.5 Million National Tender Board More than MVR 2.5 Million
Current Practices in Public Procurement Both centralized and de-centralized system SAP- MM module is used to procure goods and service for the small value contracts Larger projects carried by National Tender Board All information related to procurement are captured through SAP-MM module and PMS
e-GP readiness & implementation status Regulation has been changed to accommodate e-GP in the public sector Readiness assessment will be done by end of September 2017 Existing SAP-MM module has some features of e-GP ( e-purchasing, e-contract management, such as management of receivables, payments to suppliers, auditing etc.) Beginning of 2018, E-procurement will be started
Challenges Supplier/ contractors preparedness IT infrastructure and security issues Legislative readiness Enroot trust on online transaction and e-signature
Thank You Thank You