In 2003, a new Procurement Regulation was introduced which takes into account the harmonization efforts of the MDBs and their minimum requirements for local procurement. The regulation is applicable for all entities using public resources for procurement. MDBs and bilateral donors are encouraged to use the Government’s new regulations for local procurement and international procurement.

Standard bidding documents for goods and works, and request for proposals for consultants services are completed, in accordance with the new regulation.

A computerized and real time procurement management information system will be established to monitor and enforce compliance with new procurement regulations. Improvements in the area of procurement include: guidelines for management of procurement process; publication of contract award; simplification of advertisement procedure; establishment of a public procurement web-site & electronic tendering; a procurement bulletin; a sequestering evaluation committee; de-layering of procurement approval process and delegation of powers; procurement post review; appeal procedures and code of conduct.

Significant progress has been achieved in the area of procurement. The main advance has been the promulgation of the national procurement decree that is expected to form the basis for harmonization by all donors around the national norms.

The Government is holding workshops (for the donors and also for the relevant nationals) to discuss the details of the Procurement Decree.

A recent procurement decree that amends the law to favor local procurement by splitting large contracts into smaller contracts is under review.

Complementary activities in the harmonization effort in procurement are the development of (i) an e-procurement system and (ii) a system to measure the percentage of government transactions deemed acceptable. The latter is being undertaken as part of the pro-poor governance section in the PRSC.

IADB and WB are providing guidelines for the Brazilian Electronic Pregao system. In fact, these guidelines represent a joint product of AsDB, IADB and WB in the area of electronic government procurement (eGP) harmonization.

AsDB and the World Bank have agreed on standard bidding documents (SBD) for national competitive bidding and are making progress on SBDs for international competitive bidding (ICB).

AsDB and the World Bank have also shared work on harmonization procedures, including financial management and procurement.

The RGC recently issued projects’ Standard Operating Procedures includes a Procurement Manual developed in early 2005 with grant assistance from AsDB and the WB. The Manual describes harmonize and streamline procedures for daily management and administration of Cambodia’s portfolio of donor-assisted projects funded by credits, loans and technical assistance grants, regardless of the source of funds. It is hoped that this Manual will be quickly adopted on the majority of donor-funded projects in Cambodia and result in a standardized and more efficient approach to project design and implementation.