Why, When, How and Who to prepare Annual Procurement Plan (APP) (बार्षिक खरिद योजना)
For Procurement of More than 1 Million in a year by a Public Entity (सार्वजनिक निकायले बार्षिक दश लाख भन्दा बढी रकमको खरिद गर्नुपर्ने भएमा) the Annual Procurement Plan (APP) is to be prepared under the PPR Rule 8(1), immediately after the Approved Program and Budget is received (APP Rule 8(4)). The preparation of APP is mandatory and the provision falls under the Preparation to be made for Procurement Proceedings under the PPR Rule (3):
Public offices in Nepal has to prepare annual procurement plan for the programs to be conducted in a Fiscal Year after receiving the Program for the FY. The procurement plan is prepared under the following provisions of PPA and PPR :
The Public Procurement Act 2063 Section 6 (सार्बजनिक खरिद ऐन २०६३ को दफा ६) and Public Procurement Regulation 2064 Rule 8 (सार्वजनिक खरिद नियमावली २०६४ को नियम ८) has directed the preparation of Procurement Plan. The PPA Section 6 and PPR Rule 8 in both Nepali and English are attached below at the end.
When and Why to Prepare Annual Procurement Plan (APP) ?
1. To manage “Procurement Schedule” systematically through out the year.
2. Legal provisions in PPA and PPR has provisioned yearly Procurement Plan to be prepared.
3. Systematically monitor the flow of a “Project Implementation Schedule” providing dedicated planned dates.
Annual Procurement Plan (APP) provides milestone dates for the Procurement Cycle as:
i. Intended Estimate Approval Date,
ii. Intended Estimate Preparation Date and Estimate Approval Date,
iii. Estimate Amount,
iv. Procurement Method and Procedure,
v. Package Number if any,
vi. Package number as per Master Procurement Plan,
vii. Agreement type to be adopted as per PPR Schedules. (Schedule 3 for Procurement contract of goods or other services ; Schedule 4 for Procurement contract of Construction work and Schedule 5 for Procurement of contract of Consultancy services).
viii. Intended Procurement Document Preparation Date, In case of Consultancy services EOI : Intended date for Publishing Notice and Evaluation.
ix. Intended date for : a) Applying for Concurrence or No objection letter in case of Donor funded project. b) Concurrence or No objection letter receiving date.
x. Procurement Notice Publication Date.
xi. Date for Request for Proposal (RFP) in case of Consultancy Services.
xii. Date for completion of Evaluation procedure.
xiii. Intended date for Letter of Intent (LOI) and Intended Agreement Date.
xiv. Work/Supply/Service commencement or star date.
xv. Work/Supply/Service completion date.
xvi. Name, Agreement No., Agreement Amount of Contractor/Supplier/Consultant. (to be filled later).
4. While Estimated or Proposed Plan with the details (as in no. 3 above) in the Fiscal Procurement Plan is approved. The Actual progress for each of the milestones is also tracked simultaneously.
5. According to PPMO : “सार्वजनिक खरिद नियमावली २०६४ को नियम ८ उपनियम १ बमोजिम दश लाख भन्दा बढी रकमको खरिद गर्नु पर्ने भएमा आगामी आर्थिक वर्षको अनुमानित वार्षिक कार्यक्रम तथा बजेट तयार गर्दा आगामी आर्थिक वर्षमा गर्ने वार्षिक खरिद योजना तयार गर्नु पर्दछ । तर विद्युत्तीय खरिद प्रणाली ( E-Gp system ) बाट खरिद गर्दा भने जतिसुकै रकम भएपनि खरिद योजना बनाउनुपर्दछ ।”
you can access this Statement from PPMO from here : कस्तो अवस्थामा वार्षिक खरिद योजना तयार गर्नु पर्दछ ?
How to Prepare Annual Procurement Plan (APP) ?
1. Annual Procurement Plan (APP) is prepared as in the format attached below in no. 2, for reference in a link. The format for preparation of APP can be downloaded by MaLePa form no. 311 (Goods and Works) and MaLePa form no. 312 (Consultancy Services) can be accessed and downloaded by clicking in : Annual Procurement Plan (APP) Format By FCGO.
2. Annual Procurement Plan (APP) is monitored by Public Procurement Monitoring Office (PPMO) at : Annual Procurement Plans.
3. You can download Annual Procurement Plan (APP) format for Goods, Construction and Consultancy Services from PPMO website from this link Directly : बस्तु / निर्माण कार्यको बार्षिक खरिद योजना
Who is responsible for Preparing Annual Procurement Plan (APP) ?
1. The preparation of APP 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 APP will be the responsibility of Public Procurement Unit and Procurement Officer (PPR Rule 16(3)).
Find the related Provisions hereunder :
PPA 2063 states the Section 6 as :
“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.”
PPR 2064 states the Rule 8 as :
“8. Annual Procurement Plan to be Prepared:
(1) In the cases where a Public Entity requires to make procurement of an amount exceeding one million Rupees annually, it shall have to prepare, while preparing estimated annual program and budget of the next fiscal year, an annual procurement plan for the procurement to be made in the next fiscal year. Such procurement plan shall also be based upon the master procurement plan prepared under Rule 7, where such plan is prepared, if any,
(2) The Public Entity shall have to state the following matters in the annual procurement plan under Sub-rule (1):-
(a) Description relating to the types of procurement,
(b) Possible package of procurement,
(c) Time table of procurement proceedings,
(d) Procurement method,
(e) Types of contracts to be concluded for procurement, and
(f) The matters prescribed by the Public Procurement Monitoring Office from time to time as required to be included in the annual procurement plan.
(3) The timetable under clause (c) of Sub-rule (2) shall contain the time frame for carrying out the following works:-
(a) Preparing specifications if goods are to be procured,
(b) Preparing cost estimate of procurement,
(c) Preparing sealed quotation form, documents relating to pre-qualification proposal or inviting a bid or proposal for consultancy service,
(d) Publishing notice for invitation to sealed quotations, pre-qualification proposals, bid or request for the proposals of consultancy services,
(e) Evaluating sealed quotations, pre-qualification proposals, bids or proposals for consultancy service,
(f) Accepting sealed quotation, pre-qualification proposal, bid or request for proposal for consultancy service,
(g) Concluding contract,
(h) Commencing the work, and
(i) Completing the work
(4) The chief of the Public Entity shall have to send a copy of the annual procurement plan prepared under these Regulations along with the estimated annual program and budget of the next fiscal year to the superior office and Ministry of Finance.
(5) After receiving the approved program and budget for the current fiscal year, the chief of the Public Entity shall have to revise accordingly the annual procurement plan prepared pursuant to this Rule and approve it and then send one copy of such plan each to its superior office, Treasury and Accounts Comptroller’s Office and Public Procurement Monitoring Office.
(6) The superior office shall have to monitor whether procurement proceedings are completed on time or not.”
