Presented by:

Khawar Mehmood

Introduction & Background

How TI Pakistan brought change in National
Procurement Law
Tools and Training Material
Transparent Procurement Principles

The Integrity Pact Application of Integrity

Pact
TI Pakistan Recommandation on Transparent
Procurement System
Conclusion
Monitoring of Integrity Pact

Internationally, the Transparency International

movements main aim is to strengthen the
global value system by making transparency
and accountability more relevant public norms.
Corruption can have many manifestations, and
countries, typically develop a complex set of
institutions, laws, rules and regulations (the
integrity system) in order to combat
corruption.
Few activities create greater temptations or
offer more opportunities for Corruption than
public sector procurement

Bribery and extortion in public sector

procurement of goods and services are key
manifestations of corruption.
Public sector in this context includes national
or provincial governments, administrations of
cities or local communities as well as other
organizations carrying out public functions.

Transparency International Pakistan realizes that

presently public procurement in all departments of
Pakistan is treated as a downstream, clerical, buying
and selling function and, therefore does not attract
professionalism and competent staff to deal with the
meagre resources with integrity and transparency.
Pakistan had over 27 different Procurement
Procedures, which was the main reason of using
discretions to conduct Procurement. This discretionary
power allowed opportunities of corruption. Under
these Procurement Procedures Tender Documents in
certain cases were even issued on a published date, and
the Completed Tender is to be submitted next day.

In February 2000, a Proposal was forwarded by

Transparency International Pakistan to the Managing
Director Karachi Water & Sewerage Board (KWSB),
Government of Sindh for the introduction of Integrity
Pact and Transparency in Public Procurement
Procedures to be implemented within the workings of
the KW&SB.
The Integrity Pact has been developed by the
Transparency International as a model for Transparent
Procurement, on the basis of extensive discussions
with governments and international agencies such as
the World Bank, the Inter-American Development
Bank,etc.

The concept of an Integrity Pact has been

designed by TI as a voluntary pact to be signed
by all contractors and procuring agency to
make public procurement practices transparent
is one of them.
Integrity Pact is a system which insures that
all activities and decisions of public offices are
transparent and that the projects/works are
implemented, services are provided or taken.

The Integrity Pact in Pakistan was applied in the

Selection of Design & Supervision Consultants in
KWSB, K-III Project. The Evaluation Criteria for Short
Listing was made Transparent by TI Pakistan.
In May 2001, to confirm the establishment of the
Integrity Pact a Workshop was organized by TIPakistan for the Karachi Water and Sewerage Board.
The other important aspect of application of Integrity
Pact in KWSB was that signing of the IP was made
mandatory for all Consultants.

After the Short Listing, Evaluation Criteria for the

Letter of Invitation (LOI), on two envelop system.
Technical & Financial.
The Tender process for Procurement Contracts was
completed in September 2003 and all major
Construction Contracts were awarded at a total Cost of
Rs 4448 million.
Transparent procurement procedures can contribute to
a more efficient allocation of resources through
increased competition and budgetary savings for
governments.

The most successful tool of Transparency International

Pakistan is Memorandum of Understanding MOU it signs
with public procuring agencies.
After Signing of the MOU, TI Pakistan prepares
Procurement Manual for the procuring g agency and after
its is reviewed and discussed with the officers of the
procuring agency.
The Procurement Manual comprises of all the Standard
Bidding Documents on procurement of Works, Goods &
Services, based on International Standards.
TI Pakistan also provides the services to vet all tender
documents which the Procuring Agency prepares on the
basis of Procurement Manual for 3 months .

The 3 days CBT Workshop was held on 19-21 September

2005 at Karachi, based on the Procurement Manual for the
Capacity Building and Training of the experts on
procurement from various departments.
The Workshop was jointly held with following agencies;
Transparency International
Transparency International Pakistan
World Bank
National Accountability Bureau
Public Procurement Regulator Authority
Auditor General Pakistan.

Transparency International Pakistan firmly believes

that the application of the principles of integrity,
transparency and accountability to all decision
making on major public investments will maximize the
economic, financial, social, environmental and political
benefits.
Integrity means that the best available technical
expertise is employed in a non-discriminatory manner,
that fair and open competition leads to a quality
product at a fair price (value for money), and that the
product takes into account the legitimate aspirations
and concerns of all the stakeholders.

Transparency means that institutions, processes and

decisions are made accessible to the public at large or
to representatives of the public so that processes and
decisions can be monitored, reviewed, commented
upon and influenced by the stakeholders.
Accountability means that governments, public
(government-owned or controlled) institutions and
individual officials on the one hand, and companies
and agents or other individuals acting on behalf of
companies on the other hand, must be held strictly
accountable for the correct and complete execution of
their tasks and duties.

Either the World Bank or PEC Bylaws should be

uniformly implemented in all government and semi
government departments till such time the PPRA
prepares its own Guidelines.
For ensuring Transparency and Public Participation,
the Transparency International Pakistans Tool
Integrity Pact should be made an integral part of all
tenders.
For every new project, Public Hearings should be
made mandatory for necessity of the project and
environmental assessment, prior to concept clearance
approval.

Clients must declare their evaluation reports ten days

(10)prior to actual award of the Contract. All
objections received from any sector including the
competitors shall be examined and a Re-Evaluation if
required is carried out and the Contract awarded to
the lowest bidder.
Evaluation Committees for Pre-qualification and
Award of Contracts must include at least two
departmental members, and a minimum of three
independent experts, (One each from the Pakistan
Engineering Council, Institute of Chartered
Accountants and FPCCI).

The TI Pakistan Experience confirms that IP allows

procurement to be based on Standard Biding
Documents acceptable to International Standards, and
generates healthy Market Competition and Contract is
awarded to the most experienced, competent and
lowest responsive evaluated bidder in the shortest
possible time.