Decentralized procurement practice at municipality level under BMDF financing in Bangladesh: an analysis

Abstract

This report addresses the different aspects of centralized and decentralized procurement system. The study considers the extent to which the existing decentralized procurement system is an acceptable mechanism in terms of compliance and efficiency. The findings of the research indicate that with all its weaknesses the Piloting decentralized procurement is acceptable. Before this study was undertaken, no study was conducted on decentralized procurement in the municipalities in Bangladesh. It is hoped that the study would shed light on different related issues and would be of some use to policy makers. Efficiency in procurement processing following applicable procurement guidelines indicates that the procurement entity i.e. local government agencies have become capable and skilled. Compliance on applicable procurement rules indicates that integrity and ethical issue achieved tremendously.Besides capacity of ULB personnel including engineers, accountants and even the mayors, the public representatives in project preparation, procurement processing, project implementation, bill payment etc. have markedly enhanced. It has also been explored that delivery rate i.e. timely implementation/execution of the schemes or sub-projects still is alarming and very poor. The reason so far identified behind this poor performance is not connected with the type of procurement system followed but it has been known that weather conditions i.e. wet weather or rainy season and political instability interrupted the works implementation. Besides acts of god and force majeure cases were also involved resulting delay in project implementation. Finally recommended for continuing decentralized procurement system for the development works in the ULBs under BMDF monitoring and supervision with adopting necessary capacity building programs.