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System of Public Procurement in Turkmenistan

System of Public Procurement in Turkmenistan. Dovletmurad Ovezmammedov Head of Budget Expenditures Audit Department Treasury Division Ministry of Finance of Turkmenistan. General information.

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System of Public Procurement in Turkmenistan

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  1. System of Public Procurement in Turkmenistan DovletmuradOvezmammedov Head of Budget Expenditures Audit Department Treasury Division Ministry of Finance of Turkmenistan

  2. General information • During the financial crisis Turkmenistan maintained high rate of economic growth - at 106.1% in 2009 • State social programs were sustained, employment level maintained, SME sector was expanded • Denomination of the national currency was carried out in 2009. Inflation rate maintained at 0.1%

  3. General information • Stable financial system is benefited from the balanced fiscal policy, which also stimulates economic diversification and further structural reforms • Financial regulation system, supervision and effective control of the state finance allowed to keep up the production level and, thus, the tax proceeds in to the state budget • Currently, a 3-year budget system is being considered

  4. Procurement - perspectives • Under the current reforms, normative legal base of Turkmenistan is being modernized, including adoption of the Law “on Public Procurement” • To ensure efficiency and effectiveness, as well as wider, equal participation of suppliers and publicity of the public procurement, a legal and structural basis are to be established for procurement of goods and services for the needs of Turkmenistan

  5. Procurement – current system • Currently, public procurement of goods and services for budget users is governed by the decree of the President of Turkmenistan and by Provisions “on the Procedures of conducting tenders for selection of suppliers and contractors” of 2002 • Public Procurement is carried out in the form of tenders • The above Provision specifies the General procedures and conditions of preparation, conducting, organizing tenders on selection of suppliers and contractors for the logistics operations for budget users

  6. Procurement – current systemMain principles for conducting tenders • Creating equal competitive conditions for all enterprises and organizations of private ownership • Providing publicity during conducting tenders • Providing objectivity during the tender evaluation • Defining unified requirements for conducting tenders

  7. Tender types • Tenders are of two types: • Open or closed (limited to a number of participants) • Primary or repeated • Open tenders are open for all organizations regardless of ownership (incl. entrepreneurs without a legal establishment) possessing necessary licenses to participate in tenders • Closed tenders are open for organizations and entrepreneurs with good professional experience, technology base and possessing recommendations on specific activity experience • Tender committee may decide to pre-qualify companies before conducting tenders

  8. Tender process • Tenders are organized by the Ministry of Finance of Turkmenistan • For open tenders - The tender organizers or a committee notify potential bidders on the upcoming tenders through mass media • For closed tenders – official invitations are sent out to specific organizations

  9. Tender process • Enterprises and organizations of private ownership, as well as entrepreneurs without a legal establishment are admitted to participate in tenders provided they have a license to engage in the specific activities (if this is stipulated by country’s legislation) and other necessary documents • To participate in tender the potential bidders should timely submit: • The application, documents proving tender requirements are met, pass pre-qualification (if this was required) and pay all fees

  10. Tender process • At a specified date a tender committee reviews bidders’ applications, verifies their compliance with requirements, selects the winning bid and prepares a protocol, which is signed by the Committee members • The Committee may also invite the bidders to provide additional comments and explanations; require additional information and documents • Timing required for reviewing the bids is announced during the 1st meeting of the Committee but is normally completed within 1 month after submission of proposals • Resolution of disputes is ruled by the legislation of Turkmenistan

  11. Conclusion • Currently, around 3 thousand projects are being implemented by companies from about 60 countries of the world • The new Procurement law will address all models stimulating Public procurement, expanding participation of various enterprises and organizations, creating equal and mutually beneficial conditions

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