PUBLIC PROCUREMENT SYSTEM

IN TURKMENISTAN

Geldy SaryevHead of Industry, Transport and Communications Financing

Department of the Ministry of Finance of Turkmenistan

Territory - 491,2 th.sq/kmCapital – AshgabatPopulation – around 6,3 mln.Turkmenistan has 5 velayats (regions)Turkmenistan borders with Kazakhstan, Uzbekistan, Iran and Afghanistan

COUNTRY INFORMATION

MAIN INDICATORS OF THE SOCIO-ECONOMIC DEVELOPMENT

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

LEGAL BASE

Civil code of TurkmenistanTurkmenistan 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

PUBLIC PROCUREMENT SYSTEM

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

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 approval.

BIDDING

• 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”

BIDDING

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 consumers.

BASIC PRINCIPLES OF BIDDING

Creating equal competitive conditions for all enterprises and organizations of non-state forms of ownership;

Ensuring publicity in tenders; Ensuring the objectivity of the results of

evaluation of tenders; Defining common requirements for bidding.

BIDDING

Bidding is accomplished for the following needs:

Procurement of products;Services;Construction of buildings and construction of

industrial-purpose, social facilities;Design, construction, installation, commissioning

and other works;Supply of complete sets of technological

equipment;Perform other kinds of works and services.

BIDDING

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.

BUYER’S FUNCTIONS

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.

FUNCTIONS OF THE ORGANIZER

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

Tender committee functions include: Approval of tender documentation; Organization of distribution of tender

documentation; 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

PROCUREMENT

Public procurement is also carried out in

accordance with the signed intergovernmental

agreements

ASSISTING PUBLIC PROCUREMENT

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 scientific-technical relations of Turkmenistan with other states.

Chamber of Commerce organizes international and foreign exhibitions and presentations of companies and organizations in Turkmenistan.

CONTROL OVER PUBLIC PROCUREMENT

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 documents.

CONTROL OVER PUBLIC PROCUREMENT

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

CONTROL OVER PUBLIC PROCUREMENT

Subsequent control is carried out by:

Supreme Control Chamber Control and Audit Department of the

Ministry of Finance Prosecutor General’s office

IMPROVING THE LEGISLATION

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!