Pub­lic pro­cure­ment rep­re­sents ap­prox­i­mately 21 per­cent of GDP

Bhutan Times - - Front Page - Sonam Pen­jor

The coun­try, pub­lic pro­cure­ment rep­re­sents ap­prox­i­mately 21 per­cent of the Gross Do­mes­tic Prod­uct (GDP) or around 60-70 per­cent of an­nual gov­ern­ment bud­get.

The GPP Bhutan project’s re­search re­vealed that in the 10th FYP pe­riod (2008-2013), the high­est gov­ern­ment ex­pen­di­ture was on works. The top ten Ob­ject Codes (OBCs) ac­count for 86.2 per­cent of the to­tal pro­cure­ment of the plan pe­riod with ex­pen­di­ture worth Nu. 18.8 bil­lion. The top three high­est spend­ing OBCs ac­count for 66 per­cent of the to­tal pro­cure­ment worth of Nu.14.5 bil­lion, all of which fall un­der the works cat­e­gory –build­ings, roads and other struc­tures.

Ac­cord­ing to the Check­list for Im­ple­ment­ing Green Pub­lic Pro­cure­ment in Bhutan June 2017, a cross-sec­toral strat­egy for sus­tain­able in­dus­trial com­pet­i­tive­ness the GPP Bhutan project which is an EU-funded project un­der its Europe Aid SWITCH-Asia Pro­gram aims to es­tab­lish a strate­gic ap­proach to scal­ing-up pub­lic de­mand for en­vi­ron­men­tally and so­cially prefer­able goods, ser­vices and in­fra­struc­ture in Bhutan.

The project seeks to pro­mote value-for-money across the as­set life­cy­cle rather than sim­ply at the point of pur­chase, in or­der to re­duce the neg­a­tive en­vi­ron­men­tal im­pacts and max­i­mize social ben-

efits of con­sump­tion and pro­duc­tion.

GPP is the pur­chas­ing of goods, ser­vices and in­fra­struc­ture in a way that max­i­mizes value-for-money across the life­cy­cle. This re­quires that pub­lic en­ti­ties max­i­mize pos­i­tive im­pacts and min­i­mize neg­a­tive im­pacts from eco­nomic, social and en­vi­ron­men­tal per­spec­tives along the life­cy­cle of goods, ser­vices and in­fra­struc­ture.

The Check­list for Im­ple­ment­ing GPP Bhutan June 2017 also stated that GPP gen­er­ates mul­ti­plier ben­e­fits. When gov­ern­ments spend money on goods, ser­vices and in­fra­struc­ture, the ini­tial spend­ing is im­por­tant, but so is the way the money is re-spent and cir­cu­lated in the economy.

Mul­ti­plier ben­e­fits oc­cur when spend­ing on pub­lic pro­cure­ment rip­ples through lo­cal and re­gional economies, strength­en­ing them and gen­er­at­ing social and en­vi­ron­men­tal ben­e­fits be­yond the ini­tial pur­chase trans­ac­tion.

GPP can also help gov­ern­ments tackle per­sis­tent chal­lenges, such as un­em­ploy­ment, in­suf­fi­cient skill bases, poor con­nec­tiv­ity, and lim­ited in­dus­trial di­ver­sity. The mul­ti­plier ef­fects of GPP can re­gen­er­ate so­ci­eties and economies by cre­at­ing lo­cal em­ploy­ment and business op­por­tu­ni­ties and mul­ti­ply­ing the cash in the lo­cal economy.

The Check­list for Im­ple­ment­ing GPP Bhutan June 2017 fur­ther stated that if pro­cur­ers are legally man­dated to buy green, ac­tu­ally do­ing so be­comes much eas­ier. It le­git­imizes the time, ef­fort and money spent by pro­cur­ers on con­sult­ing with en­vi­ron­men­tal spe­cial­ists, sup­pli­ers and stake­hold­ers, and de­sign­ing spec­i­fi­ca­tion and award cri­te­ria that will crowd in the key mul­ti­plier ben­e­fits: the wider com­mer­cial­iza­tion of green goods/ser­vices across the do­mes­tic mar­ket.

The ex­act pro­vi­sions on green and sus­tain­able pro­cure­ment are also im­por­tant to de­lin­eate ar­eas of pri­or­ity fo­cus. For ex­am­ple, pro­cure­ment laws that man­date that pro­cure­ment de­ci­sions be based on life­cy­cle im­pacts, costs or ben­e­fits al­low pro­cur­ers to cast the net wide and in­vite sup­pli­ers to pro­pose a range of en­vi­ron­men­tal and social im­prove­ments that are in line with the sus­tain­able de­vel­op­ment pri­or­i­ties of the do­mes­tic economy.

On the other hand, laws that ex­pressly man­date par­tic­u­lar char­ac­ter­is­tics such as en­ergy ef­fi­ciency or recycled con­tent, or man­date business with mi­nor­ity-owned en­ter­prises make spec­i­fi­ca­tion and award cri­te­ria de­sign that much eas­ier, be­cause pro­cur­ers will know where to fo­cus. Some pro­cure­ment laws might also en­cour­age the pur­chase of eco-cer­ti­fied and eco-la­beled items; in this case, ten­ders will need to be de­signed based on the rel­e­vant cer­ti­fi­ca­tion and la­bel­ing cri­te­ria.

While Bhutan’s ex­ist­ing le­gal frame­work for pro­cure­ment does not man­date that pro­cure­ment de­ci­sions be based on life­cy­cle im­pacts, there are a num­ber of pro­vi­sions that di­rectly pro­vide for the im­ple­men­ta­tion of GPP in Bhutan – as reg­u­lated through the Pro­cure­ment Rules and Reg­u­la­tions (PRR), the Stan­dard Bid­ding Doc­u­ments (SBDs) for Goods and Works and other reg­u­la­tory and op­er­a­tional doc­u­ments.

Newspapers in English

Newspapers from Bhutan

© PressReader. All rights reserved.