In 2017 a National Procurement Policy (NPP) was drafted and submitted to the National Executive Council (NEC) for deliberation. The NEC endorsed the Policy and this paved the way for a drafting of a new a National Procurement Bill 2018 which was passed in Parliament in November 2018.
The purpose of the establishment of the National Procurement Act 2018 is to centralize all government procurements in a more coordinated way so that it meets the needs of the State and the people of Papua New Guinea. It is aligned to international best practices and promotes fair competition for government contracts.
The National Procurement Act 2018 is the overarching procurement legislation in the country that holds to fundamental principles that uphold fair and transparent procurement systems – sound economic planning and management, competition, efficiency, equity, integrity, fairness, transparency, accountability, reliability, and value for money.
The passing of the National Procurement Act 2018 in Parliament created a statutory body called the National Procurement Commission (NPC).
Only public and statutory bodies that have demonstrated procurement expertise and compliance to the Authority to Pre-Commit Committee (APC Committee) will be permitted to undertake procurement with public funds; all others, at national, provincial and district levels, will use the services of the NPC.
After 40 years of government procurement, the National Procurement Act 2018 empowers citizens’ participation in government contracts. Under section 48 of the National Procurement Act 2018, contracts at a value of less than K10 million are reserved for national companies and citizens only to bid; contracts at a value exceeding K10 million and less than K30 million, a national company or citizen must have 50% shares. Any contract above K30 million is open for public tender by all companies and persons. For all contracts, if a specific good or service is not at the disposal of the national companies and citizens, it will be an open tender for any companies and persons to bid.
Various Procurement Instructions (PIs) will be issued once commencement of the Act is endorsed by NEC and gazetted through Government Printing Haus.