On Public Procurement

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Transcript On Public Procurement

Geldy Saryev
Head of Industry, Transport and Communications Financing Department of the
Ministry of Finance of Turkmenistan
Territory - 491,2 th.sq/km
Capital – Ashgabat
Population – around 6,3 mln.
Turkmenistan has 5 velayats (regions)
Turkmenistan borders with Kazakhstan,
Uzbekistan, Iran and Afghanistan
Growth rate in 2010 compared to 2009:
 Gross output - 120,6%
 Real GDP - 109,2%
 Investments – 114,1%
 Average wages – 112,1%
 State budget surplus – 2,3% to GDP
 Civil code of Turkmenistan
 Turkmenistan laws:
 On trade
 On State Commodity and Raw-materials Exchange
 Decrees of the President of Turkmenistan:
 “On issues of the Ministry of Trade and Foreign-economic
Relations” dated 29 November 2007
 “On the procedures of conducting tenders to select
suppliers and contractors” dated 5 March 2002
 “On logistics support of the Oil and Gas Complex” dated 3
June 2002
 “On improving conducting exhibitions and fairs” dated 21
July 2008
The following actions are taken in the public
procurement process:
– Procurement planning;
– Bidding;
– Concluding contracts through direct contracting
and tenders;
– Control over procurement.
Public procurement planning is accomplished at the
stage of drafting the State Budget of Turkmenistan and
the Investment Program for the next year through review
of proposals submitted by Ministries and Agencies
financed from the state budget and are finalized after
• Enterprises from both, public and private sector,
participate in the public procurement system
• Enterprises of the Ministry of Trade and Foreign
Economic Relations of Turkmenistan accomplish
procurement and supply of goods and products of
industrial purposes for the state needs.
• Logistical support to Oil and Gas Industry is
provided through the Ministry of Oil and Gas and
Mineral Resources, State Concern “Turkmengaz”
and “Turkmenneft” (Turkmen Oil) and the State
Corporation “Turkmengeologiya”
Procurement for budget consumers from suppliers
and contractors in the private sector is carried out in
accordance with the Regulations on procedures of
tenders for the selection of suppliers and contractors.
The purpose of the tender is to select an optimal
supplier or contractor to perform transactions of budget
 Creating equal competitive conditions for all
enterprises and organizations of non-state forms of
 Ensuring publicity in tenders;
 Ensuring the objectivity of the results of evaluation
of tenders;
 Defining common requirements for bidding.
Bidding is accomplished for the following needs:
 Procurement of products;
 Services;
 Construction of buildings and construction of industrialpurpose, social facilities;
 Design, construction, installation, commissioning and
other works;
 Supply of complete sets of technological equipment;
 Perform other kinds of works and services.
Depending on the composition of the committee or
forms, the tenders can be:
 Open or closed;
 Primary or repeated.
The main parties are the buyer (customer), the
organizer of tenders, bidders, the tender committee.
The buyer performs the following functions:
 Provides an application for procurement of goods,
services or works;
 Participates in the tender committee;
 Establishes the final terms of agreement, contract,
and concludes it with the winning bidder.
The organizer of the tender performs:
 Organization of meetings of the tender commission;
 Preparation of tender documents, advertising and
distribution of proposals;
 Control over the tender committee;
 Reviews appeals on the tender decisions.
Tender committee functions include:
 Approval of tender documentation;
 Organization of distribution of tender
 Control over the compliance of tender
documents to terms of the buyer (customer);
 Acquainting bidders with the tender
documentation and provides explanations;
 Implementation of the tender procedures and
finalization of their results;
 Determining the winner, or making a decision on
the tender results
Public procurement is also carried
out in accordance with the signed
intergovernmental agreements
 Chamber of Commerce and Industry of
Turkmenistan promotes the development of
public procurement system through formation of
a modern industrial, financial and trading
infrastructure, utmost expansion of all forms of
business, trade, economic and scientifictechnical relations of Turkmenistan with other
 Chamber of Commerce organizes international
and foreign exhibitions and presentations of
companies and organizations in Turkmenistan.
Preliminary control is carried out by:
 Ministry of Finance – during formation of the
draft State Budget;
 Ministry of Economy and Development – during
formation of the draft Investment program;
 Main Department of the State Expertise – during
examination of design and construction
Routine control is carried out by:
 State Commodity and Raw Materials Exchange
during registration of import contracts
 Auditing services of the Treasury of the Ministry
of Finance during the payment
Subsequent control is carried out by:
 Supreme Control Chamber
 Control and Audit Department of the Ministry of
 Prosecutor General’s office
Law of Turkmenistan
“On Public Procurement”
Draft law is developed, which regulates the relations between
state, business entities and individuals engaged in
entrepreneurial activities. Work on it continues.
Budget Code of Turkmenistan
Thank you!