Sustainability considerations in the public procurement: the power sector perspective

Abstract

The objective of the research was to examine whether the existing country legal system and corresponding practices are supportive of implementing Sustainable Public Procurement (SPP). In order to achieve the objectives, a two-layered approach was undertaken: (i) reviewing the relevant literature on Sustainability issues from global perspective; and (ii) carry out a desk study on Public Procurement legal framework from country perspective. Combining the both areas of studies, an enhanced body of knowledge was formed on Sustainability Considerations in Public Procurement. Three different power sector public organizations were then approached for face-to-face interview. These organizations were PWD (Public Works Department), PGCB (Power Grid Company of Bangladesh), and DPDC (Dhaka Power Distribution Company). The study was mainly qualitative and exploratory in nature. Hence semi-structured open-ended questions were asked to capture qualitative data in the form of technical narratives. At the end, a particular success story on sustainable procurement practice was discussed, which have been termed as “Case Study” under this research. The summary of the information and views received from the aforesaid studies and interviews have been presented as Research Findings at the end. Finally, based on the 28 (twenty eight) Research Findings and in light of the insights received from the interviews, 8 (eight) Recommendations have also been provided at the end of the report. Documents reviewed during the literature review and desk study include, but not limited to, the followings: (i) Public Procurement Act and Rules, PPA 2006 & PPR 2008; (ii) The World Bank Procurement Regulations; (iii) PWD Schedule of Rates; (iv) Roadmap to Sustainable Public Procurement, GOB; etc. Major research findings came out from the study include: (i) The country legal system and practices are supportive of implementing sustainability in public procurement; (ii) PPA 2006, PPR 2008 and associated Standard Tender Documents (STDs) provides ample opportunities in favour of SPP; (iii) The elements of sustainability are embedded in the form of equitable treatment, performance based specification, health & safety, labour welfare, domestic preference, threshold-based procurement methods, lots for SMEs, nonpriced criteria, payment, etc. Findings also include major challenges, such as: (i) Building effective awareness on SPP; (ii) Lack of clear definition of sustainable products/ services/ supplier operations; (iii) Lack of well-defined procedures to evaluate sustainability offers by the market, etc. Recommendations based on the findings of the research study include: (i) Implementation of massive training programs for procuring entities; (ii) Inclusion of special criteria aimed at promoting bidders with existing social/ environmental protection standards; (iii) Adoption of policy of reservation for some particular type of procurement for socially-disadvantaged groups, women-led businesses and small and medium enterprises.