Turkey - Country procurement assessment report

Page 1 TURKEY FINAL COUNTRY PROCUREMENT ASSESSMENT REPORT VOLUME I June, 2001 E E U U R R O O P P E E A A N N D D C C E E N N T T R R A A L L A A S S I I A A R R E E G G I I O O N N T T H H E E W W O O R R L L D D B B A A N N K K Page 2 i TURKEY FINAL COUNTRY PROCUREMENT ASSESSMENT REPORT FINDINGS AND RECOMMENDATIONS Table of Contents Page Acronyms iii Preface iv Date, Basis iv Purpose of Report v Acknowledgements v Executive Summary vi PART A : SUMMARY OF FINDINGS - STRENGTHS AND WEAKNESSES OF THE PRESENT PROCUREMENT SYSTEM Page Public Sector 1 Legal and Regulatory Framework 1 1.1 Sources of Law 1 1.2 Legislative Framework 1 1.3 Legislation on Public Procurement 1 1.4 Scope of the GPL 1 1.5 Related Legislation 2 1.6 Recent Legislative Developments 2 1.7 Recommendations on Legislative Development 2 2 Procurement Procedures and Practices 3 2.1 Procurement Planning 3 2.2 Participation of Bidders 3 2.2.1 Qualification of Bidders 3 2.2.2 Participation by Foreign Bidders 4 2.2.3 Application of Domestic Preference 4 2.3 Conduct of Procurement Proceedings 5 2.3.1 Procurement Methods 5 2.3.2 Forms of Communications 6 2.3.3 Advertisement 6 2.3.4 Bidding Documents 6 2.3.5 Bid and Contract Price and Currency 6 2.3.6 Bid Submission 7 2.3.7 Bid and Performance Securities 7 2.3.8 Bid Validity Period 7 2.3.9 Bid Opening 7 2.3.10 Evaluation and Comparison of Bids 7 2.3.11 Award, Conclusion and Entry into Effect of Contract 8 2.3.12 Records of Procurement Proceedings 8 2.4 Contract Implementation 8 2.4.1 Regulations on Contract Administration 8 2.4.2 Implementation 8 Page 3 ii 2.5 Bid Protest 9 2.6 Recommendations on Procurement Procedures and Practices 9 3 Organization and Resources 11 3.1 Roles and Responsibilities 11 3.2 Public Procurement Training 11 3.3 Development of the Procurement Profession 11 3.4 Relations between the Government and the Business Community 12 3.5 Recommendations Related to Organization and Resources 12 4 Audit and Anti-Corruption Measures 13 4.1 Audit 13 4.2 Current Anti-Corruption Measures 13 4.3 Current Initiatives 13 4.4 Recommendations Related to Reforming Audit and Anti-Corruption Measures 14 5 Public Sector Management Performance 15 5.1 Performance of the Public Procurement System 15 6 Performance on Bank-assisted Projects 16 6.1 Procurement and Portfolio Performance 16 6.2 Decentralization of Procurement Functions 16 6.3 Organization of Procurement in Bank-assisted Projects 17 6.4 Strengths and Weaknesses of Procurement under Bank-assisted Projects 17 6.4.1 Strengths 17 6.4.2 Weaknesses 18 7 General Risk Assessment 19 Private Sector 20 8 Commercial Regulations 20 9 Commercial Practices 22 10 Strategic Approach 24 11 Measures to be Taken by the Government 24 12 Measures to be Taken by the Bank 25 13 Technical Assistance 25 14 Timetable 25 15 Recommended Bank Approach for Supervision 26 ATTACHMENT I Action Plan Page 4 iii CURRENCY Currency Unit = Turkish Lira (TL) US$ 1 = 623,507 (average for 2000) ACRONYMS BAFO Best and Final Offers CEN European Committee for Standardization CENELEC European Committee for Electro-technical Standardization COM Council of Ministers CPAR Country Procurement Assessment Report DDK State Audit Board EC European Commission EU European Union GOT Government of Turkey GPA Agreement on Government Procurement of the WTO GPL Government Procurement Law ICB International Competitive Bidding MBA Masters of Business Administration MOF Ministry of Finance MPWS Ministry of Public Works and Settlement MTI Ministry of Trade and Industry NCB National Competitive Bidding OCSPR Operations Core Services - Procurement, World Bank PEIR Public Expenditure and Institutional Review PFPSAL Programmatic Financial and Public Sector Adjustment Loan RPA Regional Procurement Advisor SBD Standard Bidding Documents SIS State Institute of Statistics SEEs State Economic Enterprises SPO State Planning Organization TCA Turkish Court of Accounts TGNA Turkey Grand National Assembly TL Turkish Lira TSI Turkish Standard Institute WTO World Trade Organization YDK High Audit Board under the Prime Minister