In-depth Insights for Master Procurement Plan (MPP) (के हो बहुबर्षीय खरिद गुरुयोजना, यो किन र कसरि तयार गरिन्छ ? )

In a Public Project in Nepal, preparation and approval of Master Procurement Plan is mandatory for : “a planning or project to be operated for a period of more than one year or in making a procurement of an amount exceeding one hundred million Rupees annually.” (PPR Rule 7)MPP is to be prepared mandatorily for the project meeting the criteria above as per Public Procurement Act 2063 Section 6 and Public Procurement Regulation 2064 Rule 7 in Nepal. 

Why Master Procurement Plan is Needed ?

1. Preparation of Master Procurement Plan (MPP) is deemed mandatory for the projects that are to be operated for more than a year as Multiyear Project or a estimated project amount exceeding 10 crore as per PPA and PPR.

2. Preparation of MPP is mandatory for  Approval of Multiyear Project as this Master Procurement Plan Provides clear guideline for the requirement of resources over the estimated project duration (say: budget required for a project ABC in FY 1, FY 2 and FY 3) Which is supportive for Budgeting and Project Planning.

Illustration 1 : If a Project ABC is estimated to cost Rs. 50,00,00,000. The Master Procurement Plan can suggest target or goal like, Rs. 12,00,00,000 is needed for FY 1 ; Rs. 30,00,00,000 for FY 2 and Rs. 8,00,00,000 is  needed for FY 3. 

Relevance and Use of Master Procurement Plan : In Multiyear Project Planning, the target requirement of budget for project ABC in each consecutive three years FY 1, FY 2 and FY 3 shall  have the same amount of budget allocation requirements as proposed by the Master Procurement Plan for execution of the project in time. Thus, for resource allocation or the budget allocation for the project, the Master Procurement Plan is deemed mandatory for the projects having limits (more than a year or more than 10 crore) as mentioned above.

3. For the preparation of Annual Project Plan (APP), the Master Procurement Plan (MPP) is mandatorily taken as a reference. 

Read about Annual Project Plan in the link below : 

Why, When, How and Who to prepare Annual Procurement Plan (APP) (बार्षिक खरिद योजना)

When to Prepare Master Procurement Plan ?

1. As indicated by the PPA 2063 Section 6 and PPR 2064 Rule 7, the MPP is prepared under following conditions :

a. if project is designed to carry out in less or more than one year but it is more than one fiscal year, In such condition of the Project Duration is “more than one Fiscal Year” i.e. Multiyear Project. 

(Note it : There is a significant difference in saying “More than one Fiscal Year”, which does not exactly mean “More than one Year” every time. Even a project duration is less than one year duration, this project may even be expanding in two fiscal years, but not more than two fiscal years.)

Illustration 2 : If a Project W is estimated to cost Rs. 8,00,00,000 (which is less than 10 Crore) and project duration estimated is 10 Months (less than 1 year). If the Project Begins in month of Poush (January 2025) of FY 2081/82, then project will certainly go beyond FY 2081/82, Because FY 2081/82 ends in Month of 2081 Asar called Asar Masant (end of month of Asar). The project will complete in 10 months which is in Kartik 2082 (November 2025), which is FY 2 . FY 2082/83 begins in month of Shrawan of 2082 (August 2025). In such case Master Procurement Plan is prepared because “project duration is more than one “fiscal year” even it is less than one “year” and even project cost is less than 10 crore.”

Illustration 3 : If a Project X is estimated to cost Rs. 8,00,00,000 (which is less than 10 Crore) and project duration estimated is 15 Months (more than 1 year). If the Project Begins in month of Poush (January 2025) of FY 2081/82, then project will certainly go beyond FY 2081/82, Because FY 2081/82 ends in Month of 2081 Asar called Asar Masant (end of month of Asar). The project will complete in 15 months which is in Chaitra 2082 (April 2025), which is FY 2082/83 . FY 2082/83 begins in month of Shrawan of 2082 (August 2025). In such case “Master Procurement Plan is prepared because project duration is more than 1 fiscal year even project cost is less than 10 crore.”

b. if project estimated cost is more than 10 Crore, MPP is prepared even for the project to be carried out in a single Fiscal Year (FY). 

Illustration 4 : If a Project Y is estimated to cost Rs. 15,00,00,000 (which is more than 10 Crore) and project duration estimated is 10 Months (less than 1 year). If the Project Begins in month of Poush (January 2025) of FY 2081/82, then project will certainly go beyond FY 2081/82, Because FY 2081/82 ends in Month of 2081 Asar called Asar Masant (end of month of Asar). The project will complete in 10 months which is in Kartik 2082 (November 2025), which is FY 2 . FY 2082/83 begins in month of Shrawan of 2082 (August 2025).  “Master Procurement Plan is prepared because even project duration is less than 1 fiscal year but project cost is more than 10 crore.”

Illustration 5 : If a Project Z is estimated to cost Rs. 15,00,00,000 (which is more than 10 Crore) and project duration estimated is 15 Months (more than 1 year). If the Project Begins in month of Poush (January 2025) of FY 2081/82, then project will certainly go beyond FY 2081/82, Because FY 2081/82 ends in Month of 2081 Asar called Asar Masant (end of month of Asar). The project will complete in 15 months which is in Chaitra 2082 (April 2025), which is FY 2082/83 . FY 2082/83 begins in month of Shrawan of 2082 (August 2025).  “Master Procurement Plan is prepared because project duration is more than 1 fiscal year and project cost is also more than 10 crore.” 

What is included in Master Procurement Plan (MPP) ? 

In Master Procurement Plan (MPP), the following information is included: 

1. Project Name, 

2. Budget allocation no. (Budget Upasirshak Number),

3. Procurement service type (Goods, Construction or Consultancy),

4. Estimated cost of the project including amendments if any,

5. Procurement method,

6. Procurement Description,

7. Packaging details if any,

8. Type of agreement in accordance with Annex 3, 4, 5 or PPR,

9. Target including amended target if any and progress, 

10. Most importantly the breakdown of Estimated Project Cost in Each Fiscal Year as illustrated in Illustration 1 above.

How to Prepare Master Procurement Plan (MPP) ? 

1. Master Procurement Plan (MPP) is prepared as in the format attached below :

2. Here you can download “Master Procurement Plan (MPP) (खरिद गुरुयोजना)” Format linked from PPMO.

Who is responsible for Preparing Master Procurement Plan (MPP) ? 

1. The preparation of MPP along with the all total procurement activities is the responsibility of Chief of the concerned Public Entity (PPA Section 7).

2. Public Entity can carryout the Procurement works by Formation of “Public Procurement Unit” (PPA Section 7)(PPR Rule 16), if so the MPP will be the responsibility of Public Procurement Unit and Procurement Officer (PPR Rule 16(3)) to submit for approval to the concerned Secretary of Ministry or the officer that is indicated by concerned public entity regulation.

Find the related Legal Provisions hereunder :

The PPA Section 6 states the requirement of MPP as :

Public Procurement Act 2063 Provision for Master Procurement Plan (MPP) in English :

“6. Procurement Plan to be Prepared: A Public Entity shall, in making procurement valued at an amount in excess of the prescribed limit, have to prepare a master procurement plan and annual procurement plan, as prescribed.”

Public Procurement Act 2063 Provision for Master Procurement Plan (MPP) in Nepali :

सार्बजनिक खरिद ऐन २०६३ बमोजिम खरिद गुरुयोजना सम्बन्धि प्रावधान :

The detailed description of requirements of MPP is described in PPR Rule 7 as : 

Public Procurement Regulation 2064 Provision for Master Procurement Plan (MPP) in English :

“7. Master Procurement Plan to be Prepared: (1) A Public Entity shall have to Prepare a master procurement plan in procuring for a planning or project to be operated for a period of more than one year or in making a procurement of an amount exceeding one hundred million Rupees annually.

(2) The master procurement plan under Sub-rule (1), in addition to other matters shall contain, inter alia, the following matters:-

(a) Type, quantity and tentative estimated cost of procurement,

(b) Procurement method,

(c) If procurement is to be made by the use of slice or package for maximizing competition, provision relating thereto,

(d) Tentative numbers of contracts to be concluded in order to complete the entire procurement proceedings and major activities relating to such procurement proceedings,

(e) If pre-qualification proceedings requires to be carried out for procurement, matters relating thereto,

(f) Tentative time-table of procurement proceedings,

(g) The matters prescribed by the Public Procurement Monitoring Office from time to time as required to be included in the master procurement plan.

(3) The master procurement plan prepared under this Rule shall have to be approved by the secretary of the Public Entity.

(4) The concerned Public Entity shall have to update in each fiscal year the master procurement plan approved pursuant to Sub-rule (3).”

Public Procurement Regulation 2064 Provision for Master Procurement Plan (MPP) in Nepali :

सार्बजनिक खरिद नियमावली २०६४ बमोजिम खरिद गुरुयोजना सम्बन्धि प्रावधान :