Public Procurement - 2011
The Mongolia assessment was based on the legislation in force in 2010 and revealed:
- high degree of compliance in many areas, such as provisions for safeguarding procedural integrity (e.g. preventing conflicts of interest);
- medium compliance (average 71%) for the quality of the public procurement legal framework;
- outstanding compliance with the integrity indicators;
- the highest result for full compliance, achieved of all assessed countries.
However, the Mongolian public procurement framework still needs much reform. It has several regulatory gaps in the institutional framework and efficiency instruments such as lack of framework agreements. Centralisation means 80% of all procurements are handled by central government agencies. Local practitioners say remedy proceedings are timely and affordable, but review decisions are unpredictable and discriminatory. The Procurement Policy Department is perceived to be open to undue influence.
Despite all efforts, it proved impossible to obtain feedback from any local contracting entities3 or to obtain data on the implementation of environmentally sound public procurement.
The current diagnostic reviews all the outstanding issues in more depth in order to provide detailed recommendations on addressing weaknesses identified in 2010 and applying solutions recommended by the Model Law. The present report also offers guidance for upgrading specific parts of national legislation to the Model Law benchmark in order to achieve substantial improvements to the quality of the national regulatory framework and local procurement practice.
3 The OECD’s 2007 review includes Mongolia. See Pilot Exercise of the OECD-DAC Joint Venture for Procurement Results of the Benchmarking and Assessment of the Mongolian Public Procurement System (August 2007), Organisation for Economic Cooperation & Development, http://www.oecd.org/development/aideffectiveness/39244842.pdf.