Amended PPR relaxes work experience, financial qualifications for bidders

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FE Report
The government has amended the public procurement rules (PPR) relaxing the provisions relating to "work experience" and "financial qualifications" of the contractors seeking bids for public purchase up to Tk 20 million, officials said Thursday.
"A gazette notification revising the public procurement rules (PPR) has been issued Thursday," secretary of the Implementation Monitoring and Evaluation Division (IMED) Abdul Malek told the FE.
Under the public procurement (amended) rules 2009, the implementing agencies have been given "discretionary" power, allowing to invite fresh contractors or experienced ones to submit bids against any tender for public works and supply of goods up to Tk20 million.
"The mandatory financial qualifications relating to "turnover" and "liquidity" of the bidders have been relaxed so that the fresh contractors can also compete in any government bidding," a senior planning ministry official said.
He said the project implementing agencies will now determine the work experience, and financial qualifications of the bidders when they invite tenders for any procurement up to Tk20 million, he added.
"But we haven't allowed the implementing agencies to maintain one-stage two-envelop method for submitting bids and lottery provision to select a contractor for procurement of goods and works," the official said quoting the gazette notification.
In the PPR 2008, there were mandatory provisions of work experience and financial qualifications of the bidders for submitting bids against any tender called by the government agencies to procure goods and works.
At least five years of experience was required for the contractor to submit bid to get a work or supply of goods for up to Tk20 million from any project implementing agencies.
Against the backdrop of poor development project implementation rate and pressure from some ministries including communications and local government and rural development, the central procurement unit (CPTU) of the IMED took the initiative to revise the PPR 2008.
But some proposed provisions in the draft amendment report sparked off criticism from different quarters, particularly major donors like World Bank and Asian Development Bank (ADB).
The critics said relaxation of qualification of the bidders for procurement up to Tk20 million and allowing "single-stage two-envelop" method in submitting bids and "lottery" to select a contractor will breed corruption in public purchase.
Two lending agencies -- World Bank and ADB - strongly opposed the proposed changes in the PPR 2008 saying those would encourage corruption in public purchase.
Some critics also raised questions regarding the amendments saying the government was revising the PPR to offer contracts of different government works to the leaders and workers of the ruling party.
The finance minister on July 8 sat with the officials of World Bank and the ADB to come into a consensus on their concerns about the proposed revisions of the country's existing procurement law.
The government enacted the donor-advised public procurement act (PPA) in July 2006 and framed a PPR in January 2008 to check corruption in government purchases and streamline implementation of the projects.