Table of Contents

Number Contents Page

1 Message from the CEO of National Procurement Authority 1

2 Synopsis 3

3 National Procurement Commission (NPC) 5

4 NPC Decisions on Approved Projects 5

5 Reviewed Procurement Contracts based on Type 6

6 Sector wised Reviewed Projects 6

7 Reviewed Projects based on Procurement Entities 6

8 Procurement Methods of Reviewed Projects in NPC 6

9 Comparison of the Reviewed Projects in 2017 & 2018 6

10 Total Saving in 2018 7

11 Observers of NPC Sessions 7

12 Reflection of NPC and NPA Performance in Observers Reports 7

13 National Procurement Authority 9

14 Performance of different departments of NPA during FY 2018 10

15 Integrity Directorate 10

16 Complaints Resolution 10

17 Administrative Review Committee (ARC) 10

18 Debarment Committee 11

19 Strategic Communication Directorate 11

20 Public Awareness and Outreach 11

21 NPC Reports 11

22 First Public Procurement National Conference 12

23 Deputy of Monitoring and e-GP 13

24 Contract Progress Monitoring Directorate: Government Procurement 13

25 The main attribution of AGEOPS are as follow 13

26 The AGEOPS Modules are 13

27 Archive Department Activities 14

28 The Contract Process Monitoring and Capacity Certification Directorate 14

29 Investment Promotion and Support in Public Procurement Directorate 14

30 Deputy of Professionalization & Policy Development 15

31 Procurement Policy Directorate 15

32 Procurement Plan Analysis of Procurement entities/line Ministries in FY 2018 15

33 Procurement Facilitation Directorate 16

34 Procurement of Common Used Items Directorate 16

35 Deputy of Operations & Resources 18

36 National Procurement Institute (NPI) 18

37 Human Resource and Cadre Management Directorate 19

38 Operation Directorate 20

39 External Auditing Procedures in the FY 2018 20

40 Conclusion 21
NPC & NPA Annual Report Synopsis (Fiscal Year 2018) P# 1

This report concentrates on the efforts made by the National Procurement Authority (NPA) to
achieve the strategic objectives and to mandate reform flow in
procurement realm. The main focus of these efforts is to ensure
effectiveness, efficiency, transparency and accountability; with
safeguarding public resources from wastage and misuses.
Furthermore, the efforts encourage fair competition at private-
-sector level, coherent and continuous monitoring, raising the
level of compliance and observing the rule of procurement law,
in order to strengthen a centralized procurement system.
The fiscal year (FY) 2018 was a prolific and result-oriented year
for the NPA. Last year we witnessed the unprecedented
innovations in procurement proceedings, which provides
collaborative coordination among ministries; governmental organizations, private sector and NPA
that are deeply reflected through NPA performance. In the FY 2018, NPA has initiated the
Afghanistan Government Electronic and Open Procurement System (AGEOPS) with the aim to
streamline and ease the procurement process. Through AGEOPS, we are creating new space and
facilities by utilizing updated technology. The main aim is to facilitate the procurement process
through better transparency, enhanced access to the relevant information in the procurement and
contracting process; which can lead to an efficient public procurement process and effective means
of national budget execution. The implementation of the electronic procurement system in various
countries of the world has taken seven to ten years’ time, however, NPA has efficiently been able
to operationalize the e-procurement system in less than one year. The new and efficient e-
procurement system will definitely have positive impact on building the trust of the public in
general, and the civil society, private sector, international community and donors in particular.
Comparing the NPA’s performance in FY 2018 to the preceding year, there have been significant
changes in reforming the procurement system. These efforts include the implementation and
observation of procurement law, an increase in the corporate taxation, investment attractions,
savings over 18 billion Afs in the procurement process, handling the cases of fraudulent companies,
reviewing and proceeding the procurement cases and complaints efficiently, initiating and
implementing the related modules of Afghanistan Government Electronic and Open Procurement
System (AGEOPS); including Afghanistan Vendor Registration and Classification System
(AVRCS). NPA has signed pivotal memorandum of Understandings (MoUs) with Bangor
University (one of the leading universities in the field of procurement) and with Financial
Intelligence Unit (FIU) of Da Afghanistan Bank. NPA has introduced various capacity building
programs both in-house and overseas to enhance professionalization and capacities of its employees
in all levels. These new initiatives in the reform agenda of Afghanistan’s public procurement system
have immensely ensured transparency, helped companies to professionalize and helped procuring
entities to smoothly carry on procurement processes.
Fortunately, based on report by the Ministry of Finance, more than 90% of the development budget
has been spent in fiscal year 2018, which shows 23% increase in spending the national budget
compared to previous year. Apparently, this percentage occurred in the last quarter of the year, as a
result of the NPA’s performance in the implementation of Government to Government (G2G)
contracts coupled with Government to International Organizations (G2O) and framework contracts.
In order to encourage the private sector and investors, which can lead to the creation of job
opportunities, NPA has implemented the "Procurement in response to Investment" plan in two
Ministries: The Ministry of Defense and The Ministry of Interior Affairs. This reflects the
widespread support and encouragement of the private sector by government of Afghanistan.
NPC & NPA Annual Report Synopsis (Fiscal Year 2018) P# 2

The implementation of this plan has increased the graph of investments in the country, reaching
around 26 Million USD in the country. Moreover, 25% preferences for domestic products and 5%
preference is given to women-led companies in order to boost and support the domestic products
and women-owned businesses. We, at the NPA, strongly believe that women play a fundamental
role in the socio-economic development of the country and their stake in the public procurement
proceedings will further help the cause.

The active participation of civil society members, National and International observatory bodies in
the weekly meetings of the National Procurement Commission (NPC), consecutive dispatch of
information and dissemination of reports with them are the indicators of transparency,
accountability and commitment to the people of Afghanistan. However, there are various challenges
that NPA will confront in the upcoming FY (2019), such as the efforts of the corrupted parties to
influence and sabotage reform efforts, lack of professional staff in a number of specialized sectors,
lack of cooperation of procurement entities.

The new FY 2019 has already begun, and NPA once again aims to simplify and expedite the
procurement processes in the light of decree No.100 of H.E the President of Islamic Republic of
Afghanistan. NPA will strive in the extension of a modern e-procurement modules that will promote
and support the private sector through fair and legal participation in procurement processes. NPA
will further strive to improve the professionalization of procurement staff, improve private sector
capacities and participation in the public procurement proceedings and bring more transparency and
accountability measure through its planned activities in the FY 2019.

Herewith, I would like to extend my sincere gratitude to the leadership of the National Unity
Government, His Excellency, the President of Islamic Republic of Afghanistan, the Chief Executive
Officer, the Second Vice-President, and other honorable members of National Procurement
Commission, stakeholders, international partners and especially from the NPA personnel for their
endless endeavors.

Regards,

DIPL.Eng Alham Omar Hotaki

The CEO of National Procurement Authority

NPC & NPA Annual Report Synopsis (Fiscal Year 2018) P# 3

Synopsis
This report focuses on the activities and performance of the National Procurement Commission
(NPC) and the National Procurement Authority (NPA) during the FY 2018, which are presented as
below:

The NPC Decisions

The Projects Approval

Based on the provisions of the procurement law of Afghanistan, NPC has convened and reviewed
a total of 45 consecutive weekly meetings and took the following decisions on the total of 763
projects in the FY 2018:
 689 Projects Approved
 29 Projects Returned
 45 Projects Rejected

Review of Awarded Contracts

Out of 763 projects presented to NPC, in the FY 2018, 485 projects were referred for awarding and
the decisions of NPC were as follows:
 396 Projects Approved
 63 Projects Returned
 26 Projects Rejected

Contract Modifications
In FY 2018, out of 763 projects, 164 amended contracts were referred for reviewing and decisions
of NPC were as follows:
 155 Projects Approved
 4 Projects Returned
 5 Projects Rejected
Miscellaneous Proposals
About 88 of the total 763 projects, which were reviewed in the FY 2018, are miscellaneous
proposals of various governmental entities; they were referred to NPC for further review and the
decisions made were as follows:
 60 Proposals Approved
 15 Proposals Returned
 13 Proposals Rejected

The Terminated Projects

About 26 of 763 projects, reviewed in the FY 2018 were the requests for contract termination, which
were proposed by various governmental entities/ line Ministries to NPC for further review and
decisions were as follows:
 22 proposals Approved
 3 Proposals Returned
 1 Proposal Rejected

Savings
The continuance of the reform process; accurate monitoring and evaluation in the procurement
system, and also considering the differentiation in amount of actual and estimated costs of the
approved projects by NPC, have resulted in a significant savings of 18 billion Afs.
NPC & NPA Annual Report Synopsis (Fiscal Year 2018) P# 4

It is worth mentioning that the total savings which has been safeguarded from the wastage and
misuses over the past four years is 47.4 billion Afs.

Observing of NPC Weekly Sessions

Oversight of the procurement process and the presence of observers are the fundamental factors and
the main principles in the transparency of the National Procurement Commission. The national and
international observers of NPC include the Finance, Budget and National Economy Commissions
of the Parliament, the Parliamentary Anti-Corruption Caucus (PACC), the Special Inspector
General for Afghanistan Reconstruction (SIGAR), and the Combined Security Transition
Command (CSTC-A) of the Resolute Support, the Independent Joint Anti-Corruption Monitoring
and Evaluation Committee (MEC), the Integrity Watch Afghanistan (IWA) and Anti-Corruption
Network, and Afghan Anti-Corruption Network (AACN).

Projects in the Procurement Plan of the FY 2018

A total of 4949 projects were included in the procurement plan of the governmental entities in
Afghanistan during the FY 2018, with a total value of 516.6 billion Afs. Of which, about 651
projects were beyond authorization of the award authority, which were presented to NPC for further
review and decision.

Providing Facilitation for Entities/line Ministries

During the FY 2018, NPA has provided the procurement facilities for 491 projects, worth more
than 250 billion Afs. In total, NPA has been providing the facilitation service for 955 projects,
which value around 190 billion Afs and 2.8 billion USD in procurement facilities.

The Companies Debarment

The debarment committee has debarred 21 companies from participating in bidding process for
various periods of time. Based on the investigations of this committee over the past four years, a
total of 154 companies were included in the list of debarments.
It is worth mentioning that about 281.5 million Afs from bid security of the debarred companies
were confiscated and their cases for further prosecution were referred to the judiciary authorities.
The falsification of documents, collusion, embezzlement and failure to comply with the contractual
terms and conditions are the main reasons for debarment of the mentioned companies.

Tenders Dispute Resolution

The Administrative Review Committee (ARC), has reviewed 260 appeals as well as the objections
from different bidders; the final decision was made on the total of 62 cases. In the FY 2018,
Administrative Review Committee has seized more than 4 million Afs for invalid or deceitful
objections of bidders.

Contract Progress Monitoring

Systems development has been the core focus in the reform programs; NPA has initiated the
Afghanistan Government Electronic and Open Procurement System (AGEOPS) which already has
four important modules, and two new modules will be added in the system soon.

Capacity building of Procurement Cadre Professionals

The National Procurement Institute (NPI) has trained 1,835 staff of procurement departments of
entities/line Ministries, finance and administrative departments of both governmental and non-
governmental organizations in various levels (basics, intermediate and advanced) during the fiscal
year 2018. Since the inception of the NPI activities, more than 4,400 individuals have enjoyed the
various educational and training programs.
NPC & NPA Annual Report Synopsis (Fiscal Year 2018) P# 5

National Procurement Commission (NPC)

Succeeding establishment of NPA, based on Presidential Decree, Special Procurement
Commission (SPC) has been upgraded to NPC. The commission is chaired by H.E the President
of Islamic Republic of Afghanistan, and includes six key members (Chief Executive Officer,
Second Vice President, Minister of Finance, Minister of Justice, Minister of Economy and Senior
Advisor to the President on Infrastructure) convening sessions once a week. Besides the NPC
members, NPA officials, line Ministries’ officials, national and international observers participate
and monitor the NPC meetings.
Since the formation of NPC to the end of FY 2018, a total of 3718 contracts have been reviewed
during 174 weekly meetings.
After the establishment of NPC and NPA, not only the award and evaluation of large contracts
were regulated into a legal framework but also it significantly prevented the public funds from
unrealistic
costs,
wastage and
misuses and
resulted
Considerable
savings in
public
contracts.

NPC Decisions on Approved Projects

National Procurement Commission, as the highest decision-making authority on projects beyond
monetary authorization of award authority, has convened 45 weekly sessions, in which 763 projects
with a total value of 153.7 billion Afs have been reviewed and decided during FY 2018.
NPC members make decision on the approvals, returns or rejections of the projects in the NPC
sessions. Hence, during the FY 2018, NPC has reviewed 763 contracts and 689 of these contracts
were approved; 29 of the contracts were reviewed and scrutinized and subsequently were returned
by NPC for the sake of solving technical issues; in addition, 45 of the contracts were rejected by
NPC.
Number NPC Decision Number of Projects
1 Approved 689
2 Returned 29
3 Rejected 45
Total 763

Out of the total reviewed projects, 485 were specified as awarded contracts, 164 projects were
modifications, 88 projects were miscellaneous, and 26 of projects contracts were termination.

Number NPC Decision Number of Projects

1 Approved 485
2 Modifications 164
3 Miscellaneous 88
4 Termination 26
Total 763
NPC & NPA Annual Report Synopsis (Fiscal Year 2018) P# 6

Reviewed Procurement Contracts based on Type

The reviewed projects in the FY 2018 indicate that out of all the projects, 240 were from Works,
327 were from Goods, 113 were from consultancy services, 71 were from non-consulting services
and 12 of projects were miscellaneous proposals, which were referred to NPC for the final decision
and approval.

Sector wised Reviewed Projects

Of the total sector-wised reviewed projects, 291 were from the infrastructure sector, 221 were from
the security sector, 112 were from the economic sector, health and social impunity, 97 were from
the education sector and governance and the rest 42 of the projects belonged to agriculture and rural
development sector.
Number Donors Number of Projects
1 Government of I.R. Afghanistan 412
2 World Bank 108
3 Asian Development Bank (ADB) 29
4 SCTC-A 77
5 Various International Donors 137
Total 763

Reviewed Projects based on Procurement Entities

Among the total reviewed projects in the FY 2018, most of the projects were related to the Ministries
of Interior, Defense, Public Health, Public Works, Energy and Water and the Administrative Office
of the President’s General Directorate; each one of these were located in first, second, third, fourth,
fifth and sixth grade respectively.

Procurement Methods of Reviewed Projects in NPC

Based on Article 18 of the Procurement Law, procurement proceedings were carried out through
open national and international tendering, national and international restricted tendering, national
and international single-source procurement, request for quotations, Government to Government
(G2G), and Government to Organizations (G2O).

Comparison of the Reviewed Projects in 2017 & 2018

In the FY 2017, a total of 806 contracts were reviewed by NPC while in FY the 2018, a total of 763
procurement contracts were proposed to NPC by the procurement entities/line Ministries; all the
projects have been reviewed and the necessary decisions have been taken by NPC.
NPC & NPA Annual Report Synopsis (Fiscal Year 2018) P# 7

The Comparative Chart of Reviewed Projects by NPC in 2017 & 2018 based on numbers
Year Non-
Miscellaneous Consultancy Goods Works Total
Consultancy
Projects in 5 107 124 313 257 (806
FY 2017 Projects)
Projects in 12 71 113 327 240 (763
FY 2018 Projects)

Total Saving in 2018

Based on the reviewed projects in the current FY and by considering the differentiation in the
amount of actual and estimated costs of the approved projects by NPC, more than 18 billion Afs of
public funds were safeguarded from the wastage and misuses.
The savings amount in 2017 indicate that 11.1 billion Afs, as a result of review and assessments of
the procurement process, prevented money from wastage and misusage. Total amount saved by
NPC is 47.4 billion Afs over the past four years, which is a significant achievement.

Number Description Total Saved Amount in Afs

1 29.4 Billion Saving until end of FY 2017

2 18 Billion Saving in FY 2018

3 47.4 Billion Saving from establishment of NPA to end of FY 2018

For the first time, oversight over the bidding process and contract implementation process have
been started. Meanwhile, the fair and competitive opportunities among public and private sectors
have also increased in the procurement processes.
Observers of NPC Sessions
The national and international observers of NPC include the Finance, Budget and National
Economy Commissions of the Parliament, the Parliamentary Anti-Corruption Caucus (PACC), the
Special Inspector General for Afghanistan Reconstruction (SIGAR), and the Combined Security
Transition Command (CSTC-A) of the Resolute Support, United Nations Assistance Mission in
Afghanistan (UNAMA), the Integrity Watch Afghanistan (IWA), the Independent Joint Anti-
Corruption Monitoring and Evaluation Committee (MEC), the Integrity Watch Afghanistan (IWA),
Anti-Corruption Network, and Afghan Anti-Corruption Network (AACN) and have participated in
NPC weekly sessions during the FY 2018. Since the establishment of NPC, the national and
international observers have been consequently participating in all meetings and reflecting on the
NPC sessions as a mean to expand and promote the culture of transparency in the contracts realm.

Reflection of NPC and NPA Performance in Observers Reports

United Nations Assistance Mission in Afghanistan (UNAMA), the Transparency International and
Integrity Watch Afghanistan reflected the Afghanistan procurement reform on their reports.
NPC & NPA Annual Report Synopsis (Fiscal Year 2018) P# 8
NPC & NPA Annual Report Synopsis (Fiscal Year 2018) P# 9

National Procurement Authority

Based on decree No. 16 of H.E. the President of Islamic Republic of Afghanistan on 12/10/2014,
the National Procurement Authority (NPA) was established under the Administrative Office of the
President. The main goal has been to eradicate corruption and improve services delivery and
accountability to the public.
Based on the initial organizational chart, NPA was headed by general director with six key
directorates. Fundamental reforms have been initiated, such as better and efficient coordination and
consolidation of procurement procedures, strengthening transparency, streamlining the legal
framework of procurement system, facilitation of procurement processes, development and
strengthening supervision, improving capacity building and initiation of e-procurement system.
Consequently, NPA’s organizational structure was reviewed in 2018 and updated; NPA is led by
General Director, three deputies and fifteen directors.

New Organizational Structure

General Directorate
Deputy of Monitoring and eGP
Deputy of Professionalization & Policy Development
Deputy of Operations and Resources
NPA Chief of Staff Directorate
National Procurement Commission Secretariat Directorate
Integrity Directorate
Strategic Communication Directorate
Contract Progress Monitoring Directorate
Procurement Process Monitoring and Capacity Certification Directorate
Investment Support through Public Procurement Directorate
Capacity Certification of Private Sector Directorate
Procurement Policy Directorate
Procurement Facilitation Directorate
Procurement of Common Used Items Directorate
Project Evaluation & Program Development Directorate
National Procurement Institute Directorate
HR & Cadre Affairs Directorate
Operations Directorate
NPC & NPA Annual Report Synopsis (Fiscal Year 2018) P# 10

Performance of different departments of NPA during FY 2018

Integrity Directorate
Complaints Resolution
In order to attain transparency in the procurement process to a great extent, NPA has upgraded the
Integrity Department to Integrity Directorate (ID) during the FY 2018. The Integrity Directorate
has installed the complaints box to receive feedback, comments/complaints. Meanwhile, this
directorate has provided an email (integrity@npa.gov.af) to private sector, Procurement Entities
(PEs)/line Ministries.
Throughout the FY 2018, a total of 29 procurement complaints were received by Integrity
Directorate of NPA, which included 14 complaints through the complaints box, 12 complaints by
email and 3 others received through petition department of Administrative Office of the President
(AOP).
The Integrity Directorate, in compliance with procurement law and procedures, has reviewed and
investigated 19 complaints and 10 other complaints are to be investigated.
Asset registration and declaration of conflict of interest, signing Memorandum of Understanding
(MoU), participation in national and international anti-corruption conferences and compilation of
beneficial ownership plan are other activities of the respected directorate.

Administrative Review Committee (ARC)

Administrative Review Committee (ARC) was created on the basis of decree No. 676 of H.E. the
President of Islamic Republic of Afghanistan on 10/04/1394, which so far has reviewed 788 cases
in total.
During the FY 2018, total of 262 complaints of tenders and procurement entities submitted to ARC
secretariat; based on procedures, 62 cases were referred to ARC for review and final decision. As a
result of the comprehensive review of ARC, 22 cases deemed valid and 40 as invalid cases.
Moreover, the ARC secretariat has been able to provide the required information to meet 198
complainant tenders’ contentment.
Throughout the FY 2018, ARC confiscated more than 4 Million Afs from the invalid complaints of
tenders.
On the other hand, due to the detailed and thorough reviews of the members of the ACR, about 75
million AFNs have been saved during this fiscal year.
NPC & NPA Annual Report Synopsis (Fiscal Year 2018) P# 11

Debarment Committee
Debarment is an international procurement process, with the main logic and objective to ensure fair,
active and transparent participation and competition in public procurement process.
The debarment takes place when a bidder or contractor violates the procurement law or procedures
as a result of forgery, fraud, collusion, enticement, failure in accomplishing the terms and conditions
of the contract and other items foreseen in the Procurement Law (PL). According to Article 49 of
PL, the companies/bidders that violate the law or procedures shall be debarred from participation
in the procurement process from minimum 2 years to maximum 5 years.
All through the FY 2018, 123 debarment cases were sent to debarment committee by procurement
entities/line ministries. According to the procurement procedures, 21 bidders and contractors were
debarred for the periods of 2 to 5 years whilst 34.6 Million Afs and 60,000 USD of their bid
securities have been confiscated. Furthermore, the comprehensive review and investigation of the
debarment committee resulted in the exclusion of 12 bidders out of debarment. Subsequently, 6
cases for further prosecution were referred to Attorney General’s Office (AGO), whilst 38 law
violating bidders/contractors were included in the list of debarment in FY 2017.
It is worth mentioning that, since establishment of NPA, 154 bidders/contractors were debarred
from participation in the procurement process, which detailed fame of the companies publicized on
the NPA’s official website.

Strategic Communication Directorate

Strategic Communication and Integrity Directorate (SCID) initially included two departments,
entitled Strategic Communication Department & Integrity Department, but giving the importance
to public awareness and outreach, dispatching the procurement data, reform process, procurement
performance on one hand, and importance of transparency consolidation on the other hand, both
departments were promoted to two independent directorates as Strategic Communications
Directorate (SCD) and Integrity Directorate(ID).

Public Awareness and Outreach

Strategic Communication Directorate (SCD) has been publishing the NPC weekly meetings,
quarterly journal of NPA, press releases, procurement bidding and bid opening coverage,
infographics, one-pagers, newsletters and other informative packages in Dari, Pashto, Uzbeki and
English languages. The efforts ensure public outreach, streamline & extend strategic relations of
NPA as well as addressing widespread reforms, advancements and legitimization of public
procurement system in the country with procurement entities/line Ministries, private sector, national
and international institutions, media, public and civil society. These activities are conducted in
accordance with principles, values, national and international commitments in the procurement
communication and with the access to information law of Afghanistan.
It is noteworthy that data sharing and awareness have direct impact on transparency and anti-
corruption in procurement process, and NPA is committed to fact-based principles of
accountability.

NPC Reports
SCD compile and disseminate the NPC decisions and reports, particularly from 45th session of NPC
in Dari, Pashto, Uzbeki, and English, which has extensively reflected in national and international
social media and websites.
NPC & NPA Annual Report Synopsis (Fiscal Year 2018) P# 12

First Public Procurement National Conference

In order to provide better accountability and reporting of NPA reform and performance during FY
2018, the first Public Procurement National Conference was held at the Presidential Palace in the
presence of H.E Mohammad Ashraf Ghani, the President of Islamic Republic of Afghanistan, Dr.
Abdullah Abdullah, the Chief Executive, the second Vice President, a number of Ministers,
delegates from various national and international institutions, members of civil society, private
sector, NPA and the procurement officials. At the conference, the Afghanistan Government
Electronic & Open Procurement System (AGEOPS) was inaugurated officially.

In addition, three-and-a-half year achievements, improvements, future plans in anti-corruption stage

and reform in Afghanistan public
procurement system were also
presented. In this conference,
His Excellency Mohammad
Ashraf Ghani, the President of
the Islamic Republic of
Afghanistan, reminded the
reforms in the procurement
system of Afghanistan, adding
that, nobody believed in
procurement when NPA was
established four years ago, as there was absolutely no trust as a result of the existing extreme
corruption at that time, however, the National Procurement Authority proved itself as the most
transparent and successful authority organically.
NPC & NPA Annual Report Synopsis (Fiscal Year 2018) P# 13

Deputy of Monitoring and e-GP

Deputy of Monitoring and e-GP focuses on contract monitoring, system development for the
effectiveness and efficiency of public procurement processes, private sector capacity accreditation,
investment support in public procurement. The Deputy of Monitoring and e-GP has four key
directorates.
Contract Progress Monitoring Directorate: Government Procurement
NPA succeeded to initiate Afghanistan Government Electronic and Open Procurement System
(AGEOPS), during the fiscal year 2018 which was inaugurated with presence of H.E President of
Islamic Republic of Afghanistan and Cabinet Ministers.
The AGEOPS system is currently being developed with four modules, with two additional modules
to be added soon till completion of AGEOPS. This portal (AGEOPS) is designed to automatically
generate all the procurement process from outset to the end through its related modules. This
information assists the governmental organizations, the private sector, civil society, private sector,
and other sectors of the community to monitor public contracts and improve information
dissemination. The structure of this portal has been developed in accordance with Open Contracting
Partnership (OCP) standards and the World Bank's e-procurement tools.

The main attribution of AGEOPS are as follow:

1. Made by Afghan Capacity
2. Compliance with International Standards
3. Coverage of different level of procurement process
4. Saving of procurement contract’s time cycle
5. Initiation of planning culture in procurement.

The AGEOPS Modules are:

1. Afghanistan Procurement Planning Management System (APPMS),
2. Afghanistan Procurement Facilitation System (APFS)
3. Afghanistan Contract Procurement Monitoring System (ACPMS),
4. Afghanistan Vendors Registration and Classification System (AVRCS)
NPC & NPA Annual Report Synopsis (Fiscal Year 2018) P# 14

Archive Department Activities

The Contract Progress Monitoring Directorate, in management and archive department, pursuance
to achieve procedures and procurement law and standard norms and international standards,
manages all documents in a modern and systematic manner, which facilitates further access to
documents including the followings:
 A total of 2066 cases containing 592,924 pages were digitalized, which provides quick
access and better storage of the documents.
 Creating a catalog as a guidance for faster access to categorized data.
 Creation of a systematic document classification and checklist, in accordance with the
international standards for National Procurement Authority and other procurement
entities/line Ministries.

The Contract Process Monitoring and Capacity Certification Directorate:

NPA has reviewed the capacity certification of Da Afghanistan Breshna Sherkat (DABS),
Independent Administrative Reform and Civil Services Commission(IARCSC), Ministry of
Transport (MoT), Ministry of Urban Development and Housing (MUDH), Ministry of Public
Works (MoPW), Ministry of Rural Rehabilitation and Development (MRRD), Ministry of
Economy (MoEC) and Ministry of Agriculture, Irrigation and livestock (MAIL) in the FY 2018.
Moreover, this directorate also reviewed 17 reports on implementation of previous NPC instructive
decisions and guidance of H.E President of Islamic Republic of Afghanistan, and 15 NPC decisions.

Investment Promotion and Support in Public Procurement Directorate:

This directorate has recently started its activities within NPA with the aim to improve, promote and
support investment and investors in public procurement proceedings. This directorate has two
pivotal goals; 1) to facilitate and expand investment opportunities in the public procurement and 2)
to assess national and international investments in the country. The ultimate goal of this directorate
is to facilitate public procurement from domestic sources.
NPC & NPA Annual Report Synopsis (Fiscal Year 2018) P# 15

Deputy of Professionalization & Policy Development

The Deputy of Professionalization and Policy Development was formed in the FY 2018, with four
central directorates; 1) Procurement Policy Directorates 2) Procurement of Common Used Items
Directorate 3) Procurement Facilitation Directorate and 4) Procurement Contract Analysis and
Program Development.
The main responsibilities of Deputy of Professionalization & Policy Development are as follow:
Preparation of documents, drafting guidelines and procurement provisions, procurement
facilitation, processing procurement procedures of commonly used items by procurement
entities/line Ministries, processing Government to Government (G2G) and Government to
Organizations (G2O) contracts.

Procurement Policy Directorate

The Procurement Policy Directorate also operates in policy formulation and codification of
procurement procedures and provisions; consolidation of procurement plans of procurement
entities/line Ministries.

Procurement Plan Analysis of Procurement entities/line Ministries in FY 2018

Percentage of Projects by Type

Non-
Procurement Consultancy
Number Consultancy Works Goods Total
Type Services
Services
Percentage of
1 the Projects 14 5 40 41 100
NPC & NPA Annual Report Synopsis (Fiscal Year 2018) P# 16

Procurement Facilitation Directorate

Procurement Facilitation Directorate (PFD) is under the framework of Deputy of
Professionalization and Policy Development. It has provided facilitation services for 491 projects
that values more than 250 Billion Afs for those procurement entities, which have not acquired
procurement capacity certifications throughout FY 2018. From the mentioned number of projects,
199 projects with value of 75 Billion Afs have been contracted, and 292 projects worth more than
175 Billion Afs, are under the procurement process.
However, in the FY 2017, PFD provided the facilitation service for 192 projects valuing 95.88
Billion Afs. Since establishment to date, NPA in total, has provided facilitation service for 955
projects, worth 190 Billion Afs and 2.8 Billion USD, of which 663 projects worth 138 Billion Afs
and 1.08 Billion USD have contracted.
It is worth mentioning that the facilitation process is included of preparing standard documents,
procurement announcement, bid opening and reviewing of the bid evaluation report.
Among facilitated projects, 47 projects belong to economy, agriculture and rural development
sectors, 41 projects are related to security, governance and rule of law sectors,155 projects are
related to infrastructure sector and 49 projects are from culture, education, health and social
impunity sectors.

Procurement of Common Used Items Directorate

The Procurement of Common Used Items Directorate has been stablished on the basis of Article 55
of the Procurement Law, under Deputy of Professionalization and Policy Development. The main
aim of this directorate is to proceed the common used items of procurement entities/line Ministries
and to proceed Government to Government (G2G) contracts and Government to Organization
(G2O) contracts, pursuance to decree No. 3582 dated 15/03/2018 of H.E the President of Islamic
Republic of Afghanistan in FY 2018.
Also, institutionalization of the framework contract system, standardization, contract management,
as well as collaboration in establishment of electronic procurement system and enhancement of
effectiveness in implementation of Afghanistan procurement system are other core tasks of this
directorate.
Common Used Items are the items, which are routinely being utilized by governmental
organizations on daily basis.
NPC & NPA Annual Report Synopsis (Fiscal Year 2018) P# 17

Throughout FY 2018, The Common Used Items Directorate has proceeded 43 projects, of which
19 projects are under review and process, and 15 projects have been contracted through the
Government to Government (G2G) and Government to Organization (G2O) contracts method,
worth (79,204,753 USD), and 9 other contracts have been returned to its relevant procurement
entities/line Ministries.

It is worth mentioning that the shortage of time in procurement proceedings and technical
complexity of above mentioned projects and implementation of Government to Government (G2G)
and Government to Organization (G2O) contracts for the first time in Afghanistan are the common
confronted challenges. Nevertheless, as a result of the efforts made by the personnel of this
department and leadership support of the NPA, the projects have been contracted on time.
Moreover, outset of G2G & G2O contraction method has fasten up the strategic ties amongst
Afghanistan and other countries and international organizations, and inducted NPA as credible
representative of Islamic Republic of Afghanistan to international organizations.
Common Used Items Directorate in addition to proceeding and contraction of G2G & G2O
contracts, has prepared the list of 7 categories of common used items including (Stationaries,
Administrative supplies, Computer equipment, Furniture & office furnishers, Electrical- appliances,
Fuel, Engine oil) in accordance with procurement plan & mechanism, as well as entry of collected
data in database of common used items of procurement entities/line Ministries.
One of the integral advantages of common used items is to simplify the procurement contract in
less time and safeguarding governmental resources from wastage and misuses, which would have
the positive outcomes in promoting the quality of goods in the country.
Out of total contracted projects, 11 contracts were G2G, 3 contracts G2O, and one project was
contracted through Single Source method. It should be noted that 15 items procured through
common used items, which led to the savings of a large financial resources and paved the way for
further activities in this regard.
NPC & NPA Annual Report Synopsis (Fiscal Year 2018) P# 18

Deputy of Operations & Resources

Deputy of Operations and Resources, which has National Procurement Institute (NPI), Operation
Directorate, HR & Cadre Affair Directorate in its structure, was established in the FY 2018. This
deputy operates in professionalization and capacity building of procurement personnel, review and
standardization of procurement structure of entities/line Ministries, recruitment of new employees
of NPA, monitoring and evaluation of training programs, providing IT services and administrative
facilitation for NPA staff.

National Procurement Institute (NPI)

The National Procurement Institute (NPI) was
established on the basis of paragraph 9 of
Article (57) of the Procurement Law, which was
operating as NPI department last year. However,
given the priority to the urgent need for
professionalization and capacity building of
procurement staff, it was upgraded to NPI
Directorate under the Deputy of Operation and
Resources. Through FY 2018, NPI Directorate has
set up 26 round of primary training programs,
6 intermediate training programs, and 27 Rounds of special training programs for procurement
employees of governmental organizations, private
sector, donors, trainees and employees of the
National Procurement Authority.
Through these programs, 1835 individuals have
been trained, out of which, 10 percent (181 Trainees)
were women participants. It should be noted that
alongside the NPI trainers, in-service experts of NPA,
and foreign advisors (RPs) also collaborated, in
special procurement training programs.
Training of Trainers (TOT) program on new NPI
education curriculum, contemporary Teaching
Methodology, Framework contracts, Public Private Partnership (PPP), Asian Development Bank
(ADB) procurement guidelines
provided for NPI trainers
throughout FY 2018.
Out of the various overseas
training programs, one program
which took place in United
Arab Emirates and was taught
by the trainers of Bangor
University of UK, and two
other programs which took
place in NPA, were taught by
foreign specialists. Moreover, NPI Directorate signed a Memorandum of Understanding on the
expansion of mutual collaboration with counterparts including the Bangor University of UK. In the
light of this MoU, a new internationally accredited standard curriculum and opportunity for higher
education in the field of procurement in Post-Graduate and Ph.D. levels will be provided.
NPC & NPA Annual Report Synopsis (Fiscal Year 2018) P# 19

Bangor University is one of the most prestigious academic centers of higher education, for the Post
graduate courses and Ph.D. programs in Europe.
The Primary Need Assessment in creating e-learning platform, creating of e-procurement library,
compile and development of new curriculum for NPI are other efforts made by NPI Directorate.

Human Resource and Cadre Management Directorate

Human Resource and Cadre Management Directorate was established within the NPA framework
dated Dec - 2017 under the authority of Deputy of and Operation & Resources. The HR & Cadre
Management Directorate activities throughout FY 2018, mostly concentrated on professionalization
and capacity building of the procurement personnel, revising and standardization of the
organizational structure of procurement entities/line Ministries for available vacant positions in
NPA, recruitment of new employees and monitoring and evaluation of the training programs
launched by NPI.
Providing learning opportunity for 21 NPA employees on post-graduate level inside Afghanistan
and also abroad, convening Certified International Procurement Professional (CIPP) training
program and other special training programs (Framework Agreement & Public-Private Partnerships
(PPP), ADB’s New Procurement Procedures) by the international procurement experts, are the
major activities of HR & Cadre Management Directorate.
Moreover, recruitment, initiation of NPA human resources database, providing internship programs
for 116 fresh university graduates, setting up a mechanism for monitoring and evaluating the
training programs, operational guidance for supervision and effectiveness of NPI training programs
are other activities of this Directorate throughout FY 2018.

It is worth mentioning that in order to enhance and improve training programs, four-level of
evaluation approaches (Donald Kirkpatrick's Four Levels of Evaluation) has been used to ensure
better effectiveness and evaluation of the educational programs.
It is noteworthy that the creation of (Eye Detect) system in Human Resources Department, creation
of HR database of procurement entities/line Ministries employees, review & standardization of the
organizational structure of procurement entities/line Ministries and provision of their Term of
References (ToR) are some of the activities related to HR & Cadre Directorate of NPA.
During this fiscal year, the design and development of the database for monitoring and evaluation
of the training programs will be finalized and become accessible online.
NPC & NPA Annual Report Synopsis (Fiscal Year 2018) P# 20

Operation Directorate
Throughout FY 2018, along with other official tasks, the Operation Directorate has been facilitating
transportation, providing information technology services and procurement activities (completion
of 70 procurement contracts), including retail purchase, framework contract, procurement of goods
through open National Competitive Bidding (Open Tendering).
Regular and developmental budget adjustment of NPA, is the other responsibility of Operation
Directorate. The developmental budget was not delivered on time in the second quarter of FY,
however, NPA was able to spend 3.8 Billion Afs, which is equivalent to 75% of its developmental
budget out of the total budget of 372 Million Afs that is equal to 92% of the budget.

External Auditing Procedures in the FY 2018

The World Bank Audit Team and the Supreme Audit Office of the Islamic Republic of Afghanistan
have reviewed and inspected the relevant financial records and transactions, including all money
transfers, the list of relevant documents & allocations of Operation Directorate, financial
documents requested by the Human Resource, Procurement, Administrative and Financial
departments.
NPC & NPA Annual Report Synopsis (Fiscal Year 2018) P# 21

Conclusion
Premised on aforementioned points, it can be asserted that NPC decisions on one hand and
performance, innovations, reforms and ongoing efforts of NPA on the other hand over the past
years, have opened new, exciting and effective chapter in the National Procurement flow. As a
result, attaining the strategic goals as well as paving the way for further facilitation of the
procurement process and widespread implementation of governmental policy and objectives
through accomplishment of developmental projects are integral parts of economic growth and
advancement of the country.
Throughout FY 2018, pivotal efforts were made to finalize and implement the majority of the
projects that were referred to NPA. During the fiscal year, 763 contracts worth 153.74 Billion Afs
were reviewed; out of which, 689 contracts worth 127.6 Billion Afs were approved by NPC. The
number of contracts indicate that in the course of 45 sessions, approximately 17 projects have been
reviewed and decided by NPC in each weekly sessions.
Considering the reforms that have taken place in the procurement system, the outcomes of FY 2018
are distinctly different in comparison with the former fiscal year. The outcomes include an explicit
implementation of the procurement law and provisions, increasing the level of companies’ taxation,
providing procurement facilitation in the national procurement process, promoting coordination and
collaboration in various levels of the procurement procedures with governmental organizations, to
expedite the bid evaluation and procurement process, contracts dispute resolutions, handling and
reviewing of the procurement objections, initiation of Afghanistan Government Electronic and
Open Procurement System (AGEOPS) for the first time in Afghanistan, applying new technology
to facilitate the procurement process including the Afghanistan Vendor Registration and
Classification System (AVRCS) to boost transparency in the procurement processes, upgrade of the
company’s professional capacity, encouragement of the private sector in the promotion of fair and
open competition, investment attraction and creation of job opportunities, supporting and
empowering women-led businesses, support of domestic products, providing procurement training
opportunities for Procurement Entities (PEs), the implementation of Government to Government
(G2G) contracts, Government to Organizations (G2O) contracts and Framework Agreements; these
are the significant achievements of the National Procurement Authority.
Nevertheless, corrupted parties in the misuse of procurement procedures, creating obstruction and
sabotaging procurement reforms, lack of expert cadre in a number of professional units, weakness
in the overall management and the unwillingness of some of the procurement entities to collaborate
with NPA are some of the challenges confronted in the FY 2018. Whilst, the efforts to tackle these
challenges will be continued in this regard to ensure even more effective, efficient and transparent
public procurement proceedings.
There is no doubt that these achievements will play an integral role in attaining strategic goals,
however, the efforts are insufficient and further necessary steps need to be taken. The reform
process in the procurement system should constantly continue and evolve and proper actions should
be taken to promote work efficiency, transparency, accountability and to prevent wastage of public
resources. The fair competition among private companies should be expanded and a comprehensive
monitoring over the procurement process should be broadened. The role of National Procurement
Institute (NPI) in the professional training of procurement cadre should be institutionalized. The
Afghanistan Government Electronic & Open Procurement System (AGEOPS) and the new
technologies play essential role in a transparent and inclusive procurement system.
The FY 2019 will be a prolific year for the NPA, in addition, a suitable platform pertaining
implementation of Decree No. 100 dated 20/8/2018 on procurement management – from inception
of the procurement process (initiation of procurement proceedings) to the contract level, creation of
a centralized national procurement system and creating regulatory procedures including a
monitoring mechanism should be initiated and practiced.