Timor-Leste : Country Procurement Assessment Report

Abstract

This Country Procurement Assessment
 Report (CPAR) focuses on four specific areas: a) the legal
 and regulatory framework within which public procurement
 currently operates, and recommendations for necessary
 modifications; b) the current procurement policies,
 procedures and institutions responsible for procurement, and
 identification of short- and medium-term changes needed to
 ensure that procurement is carried out transparently, with
 due regard to economy and efficiency; c) the capacity of
 government officials to undertake procurement efficiently,
 and recommendations for appropriate staffing and capacity
 building plans; and, d) lessons learnt in a post conflict
 situation. This CPAR is consistent with the analytical and
 advisory assistance objectives of the Transitional Support
 Strategy. There is need to review and revise the Regulation
 to take intoconsideration the environment of an
 independent country, and to make it compatible with
 UNICITRAL Model Law on Procurement, and the procurement
 guidelines of the Bank, Asian Development Bank (ADB), and
 other development partners. Thus, it is recommended that
 consultants assist the Government in revising the
 Regulation, and, that steps be taken for developing the
 capacity of Timorese staff in procurement. Procurement
 policies, rules, procedures, and manuals, including
 appropriate controls, should be established, so that staff
 handling procurement adhere to the set rules. Given the low
 to non-existent capacity, more time and effort should be
 spent on training of procurement staff, as well as local
 contractors, suppliers and consultants. Viewing the
 emergency nature of projects in the post-conflict situation,
 development partners should assign experienced procurement
 staff, able to bring in international best practices, and
 provide guidance to government officials regarding
 procurement and project implementation issues. The
 assessment of the CPAR is that procurement risks are
 "high", based on the extremely weak procurement
 capacity. However, limited experience to date does not
 indicate significant corruption. In order to mitigate the
 risk, the training program identified should be implemented,
 with funds already available under existing grants provided
 by the Bank and ADB.