The Bhutanese Leading the way.
In a recent review of the construction sector’s procurement regulations, concerns regarding the lack of transparency and fairness in the tendering process have surfaced.
Despite efforts to modernize procurement with the implementation of the electronic Government Procurement (eGP) system, challenges remain in ensuring open and accountable bidding practices.
The issues arise from several key areas, including the withholding of bid evaluation reports, which has fueled suspicion of potential manipulation and collusion in the awarding of contracts.
Although eGP system was introduced to improve transparency, its current limitations are hindering full accountability.
To address these concerns, the private sector has proposed that bid evaluation reports be shared publicly with all bidders.
This move would allow contractors to identify discrepancies and offer valuable insights for future tenders, creating a fairer and more competitive environment. Additionally, there is a call for the eGP system to be enhanced with additional features to streamline processes and make it more user-friendly, ultimately contributing to the broader goal of improving the ease of doing business.
In response to these concerns, the Department of Procurement and Properties (DPP) under the Ministry of Finance (MoF) has been urged to act swiftly.
DPP has been urged by the Ministry of Industry, Commerce and Employment (MoICE) to review and enhance the existing procurement rules to strengthen transparency and improve the functionality of the eGP system.
Another significant issue raised in the report concerns the Standard Bidding Documents (SBD) used for the procurement of work above 5 million, which are frequently amended by public procurement agencies.
Modifications, particularly the disqualification of Joint Ventures (JVs) for large and medium-scale projects, have created an uneven playing field. Additionally, Clause 15d in the SBD, which does not provide compensation if a contract is not awarded after a successful bid, has been deemed unfair.
The complaints also target Clause 36 of SBD, which grants procuring agencies the right to reject any bid without clear justification. This provision raises concerns about potential conflicts of interest, and could result in the rejection of bids based on personal agendas rather than merit.
