Khyber Pakhtunkhwa Public Procurement Regulatory Authority (KPPRA) is an autonomous organization, established under an Act of the Provincial Assembly of Khyber Pakhtunkhwa.
Public procurement has become a specialized undertaking of the modern world. Government departments generally face institutional capacities issue in their internal control, fiscal management, procurement and contract administration which limit and hamper their overall performance and the delivery of services. There is a strong direct correlation between transparent public procurement and economic development.
Prior to the accomplishment of the KPPRA Act 2012, all public procurement were carried out under the umbrella of “The NWFP Procurement of Goods, Works, Services and Consultancy Services Ordinance" passed on 31st May, 2002. On the basis of the Ordinance, NWFP Procurement of Consultancy Services Rules were notified in 2002. Similarly under the Ordinance, the provincial government notified the procurement rules on 14 January, 2004 called the NWFP procurement of Goods, Works and Services rules, 2003.
The procurement specific reforms in Khyber Pakhtunkhwa were triggered by the World Bank back in 2007. This initiative was part of the reforms agenda under Public Financial Management (PFM) component of the Finance Department. The Provincial Assembly of Khyber Pakhtunkhwa passed the Public Procurement Regulatory Authority bill on Monday 3rdSeptember 2012 which became an Act on 16thSeptember 2012 Vide Notification No. PA/Khyber Pakhtunkhwa/Bill/2012/ 6059 dated September 20, 2012.
The rationale behind the establishment of KPPRA was that no well-defined regulatory framework / code of ethics existed for checking of malpractices by public procurement practitioners despite several enactments on efficiency and discipline of government servants while conducting the official business. In addition to this there was no system in place to provide a proper forum for resolution of any grievances regarding any procurement transaction. In case of a dispute between the procuring agency and the contractor the options were arbitration under Arbitration Act 1940 and the courts of law.
To fill the gap Khyber Pakhtunkhwa Public Procurement Regulatory Authority has been established as an autonomous body capable of providing legal and regulatory framework to provincial Government departments and other public sector entities/organizations in procurement. The overarching goal of KPPRA is to improve governance, management, transparency, accountability and quality of public procurement of goods, works and services at all levels across the province leading towards restoring trust in the State Institutions. The KPPRA board outlines guidelines for procuring agencies on various steps involved in a procurement cycle.