Preparation of Annual Procurement Plan (APP) is compulsory for all the Procuring Entites of Bangladesh as per Public Procurement Rules 2008.

What is Annual Procurement Plan (APP)?
Annual Procurement Plan is a tentative plan of procurement packages of a procuring entity for a particular financial year. APP is published on the notice boards as well as on the website of the buyer.
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The purposes of the Annual Procurement Plan are following:

Proper budget allocation - APP facilitates to allocated limited financial resources of an organization to the required procurement packages according to priority.
Year calender - APP acts as a year calender for the procurement activities of a business unit. It clearly shows what activities are expected to be taken place at diffirent months. Thus it helps the procurement department to plan their activities in advance.
Advertisement - APP serves the purpose of advertising the procurement packages to the interested contractors, suppliers and service providers in advance. This gives the interested parties to get preparation in advance for the upcoming procurement opportunities. Thus this hleps to ensure competition, particularly in public procurement.
Increasing Transparency - Advance information disclosure helps to ensure transparency in procurement activities.
Progress monitoring - APP hleps to monitor progress of procurement activities. Achievement can be compared with the targets set in the Annual Procurement Plan.
Post-procurement audit - APP helps in post-procurement audit activities by serving as the starting point of auditing functions.
Procurement control - APP is a useful tool for imposing various regulatory controls in overall procurement on an organization. For example: cash purchase limit, RFQ limit, direct contracting limit, LTM limit can easily be implemented using APP.