This document is a diagnostic assessment of the Republic of Kiribati's public procurement framework, prepared with support from the Asian Development Bank (ADB). Its primary purpose is to evaluate the current system—which includes the Public Procurement Act 2019 (PPA19), Public Procurement Regulations 2020 (PPR20), and the 2021 Public Procurement Manual (PPM) —and provide specific recommendations for strengthening it.

The report focuses on four key reform priorities specified for this ADB TA: sustainable public procurement (SPP), electronic procurement (e-procurement), tender evaluation methodologies, and the use of Framework Agreements (FAs).

It does not conduct an overall review of the procurement system in general, rather focuses on these four areas for modernization.

In the area of Sustainable Public Procurement (SPP), the assessment found that Kiribati has a good conceptual starting point. The PPA19 legally defines "Social Considerations," which includes environmental, social, and economic aspects like climate change, gender equality, and reduction of unemployment. Furthermore, the PPR2020 contains provisions that support SPP, such as life-cycle costing and domestic preferences.

However, the report identifies a significant gap between this legal basis and its practical application. The operationalization of these SPP goals into specific, actionable procurement criteria is underdeveloped. A 2023 World Bank/ADB review even rated Kiribati's environmental SPP framework as "basic to intermediate" and noted that the social/gender pillar is particularly weak within procurement documents.

To address this, the report recommends mandating the inclusion of SPP criteria in bidding documents for specific procurement categories. A key recommendation is to develop a dedicated chapter in the Procurement Manual (PPM) that provides step-by-step guidance on how to identify and integrate these criteria. This would be supported by updating standard bidding templates to include standardized SPP clauses and establishing new mechanisms to verify and monitor the uptake and impact of SPP.

Kiribati has made significant progress in adopting e-Procurement. The legal foundation exists, as the PPR20 defines "In Writing" to include electronic means. More importantly, the government now utilizes the Tenderlink portal for its e-procurement activities. This platform is a major advance from the previous interim email-based system, allowing for e-registration, access to tender documents, online Q&A forums, and secure electronic bid submission.

Despite this progress, challenges remain. A comprehensive legal framework specifically for a full e-Government Procurement (e-GP) system—covering data security, e-signatures, and data privacy—is still needed. Furthermore, the report highlights significant constraints in infrastructure and capacity, particularly the limited and costly internet connectivity in the outer islands and varying levels of digital literacy.

Recommendations focus on building a robust legal and operational framework around the new system. This includes a phased rollout to manage infrastructure gaps, potentially establishing public e-procurement access centers in the outer islands. Finally, the report calls for extensive training for both government procurement officers and suppliers on how to use the Tenderlink system effectively.

The report finds that Kiribati's current framework supports moving beyond simply choosing the lowest price. "Value for Money" (VfM) is a core principle in the PPA19 , and the PPM guides evaluators through a multi-stage process that includes technical and financial weighting .

However, the practical application of more sophisticated evaluation methods is underdeveloped. Specifically, the use of Life-Cycle Costing (LCC) and Most Economically Advantageous Tender (MEAT) is not widespread. While LCC is mentioned in the regulations, a common calculation method is lacking.

To improve this, the report recommends formally endorsing MEAT in the procurement regulations as a primary award methodology for complex procurements. It also suggests formally recognizing LCC and, crucially, including detailed chapters in the PPM that explain the practical application of both MEAT and LCC, complete with worked examples relevant to Kiribati.

Framework Agreements are already well-established within Kiribati's legal framework. They are defined in the PPA19 , and the PPM provides substantial guidance on their purpose, maximum duration, and the two different types (single-supplier and multi-supplier) .

The primary gap identified is not in the law but in the practical application, particularly for multi-supplier FAs. The report notes a risk that the "call-off" process (the mini-competition used to award a specific order) is not being conducted competitively, which undermines the value of the FA.

The key recommendation is to strengthen the regulations to mandate competitive procedures for call-offs under multi-supplier FAs. This would be supported by expanding the PPM to provide very clear, step-by-step instructions and practical tools, like checklists, for conducting these mini-competitions and managing the FA's performance over its lifespan.

The report concludes by recommending a phased implementation roadmap to manage these reforms and build capacity gradually.

• Phase 1 (6-12 Months) will focus on foundational legal amendments to the PPR, intensive training for the Central Procurement Unit (CPU), and developing core SPP and FA templates .

• Phase 2 (12-24 Months) will involve finalizing and issuing the revised, detailed PPM, piloting the new e-GP modules and SPP criteria, and rolling out targeted training for all procuring entities and suppliers .

• Phase 3 (24+ Months) will see the full, government-wide rollout of the e-GP system, mainstreaming the use of SPP and MEAT, and establishing a cycle of continuous monitoring and improvement .