completed· Governance

Strengthening Institutional Capacity of the Public Procurement Monitoring Office

Institutional Strengthening of the Public Procurement Monitoring Office (PPMO) to support the implementation of the recently passed Nepal Public Procurement Act 2007. Development Objective To promote good governance and public service delivery through supporting public procurement reforms to enhance the quality of procurement outcomes in terms of: higher volumescomma efficiencycomma effectivenesscomma transparency and better value for money. Link to CAS and/or ESW (core diagnosticscomma e.g.comma CPARcomma CFAAcomma PERcomma CEMcomma etc.)comma and relationship to Bank operations : According to the 2004 CAScomma Nepal will have to undertake a number of governance reforms in order to stimulate a more pro-poor and inclusive growth process. The CAS stresses the significance of capacity building efforts in improving governancecomma and the role of efficient public procurement in the economy. As recommended by the CPAR 2002comma the Government of Nepal enacted a Public Procurement Law in 2007 along with Public Procurement Regulationscomma 2007. It is essential that these laws and regulations be fully implemented since the most recent assessment of the Nepal Public Financial Management Systemcomma the Public Financial Management Sector Work recently carried out jointly by the Government of Nepal and the World Bankcomma found once again that procurement performance remains a very significant issues and achieved a low rating (C) for value of money and controls in procurement. The Government has a huge challenge to ensure effective implementation of the Lawcomma and the Bank needs to continue its support and engagement in this sector. Work to implement the Procurement Law is completely in concert with the governance initiative as envisioned in the updated CAS 2007. To assist Government in preparing a strategy for and initiating actions to implement the public procurement law so as to enhance the quality of procurement outcomes in terms of: higher volumescomma efficiencycomma optimum budget utilisationcomma effectivenesscomma transparency and better value for money which would lead to better governance and improved public service delivery.