advised that there should be no lag between the announcement of a tender and availability of tender documents as a lack of information only favours existing suppliers. DESIGN: JAHANZAIB HAQUE
The CCP on Thursday issued an opinion carrying its recommendations pertaining to procurement of electrical equipment by public-sector agencies in order to address recurring concerns.
It asked all power distribution companies and the National Transmission and Dispatch Company (NTDC) to apply only generic and internationally known quality control checks at the bidding stage to allow for maximum participation of bidders.
It also recommended that lumping of goods and arrangement of equipment in lots should be avoided.
There should also be no discrimination based on the country of origin, it added. Reference to a specific brand should be avoided and products should be defined through quality and performance standards, it said.
It advised that there should be no lag between the announcement of a tender and availability of tender documents as a lack of information only favours existing suppliers. Domestic price preference should also be avoided as it rewards inefficiency.
Any changes in existing specifications for the procurement of equipment must be carried out by technical experts in a transparent fashion and only on recommendation of a committee.
It also asked public sector power companies to encourage fresh entrants.
The CCP warned that if such measures were not implemented, it could lead to sub-optimal utilisation of public funds, discourage growth of local industry, hamper foreign investment and consequently lead to an undesirable impact on national economy and public welfare.
The CCP estimated the value of public procurement at around 25% to 30% of gross domestic product or Rs7.2 trillion to Rs8.8 trillion. With such a large volume, it is extremely crucial to protect against anti-competitive behaviour in the sector.
Competition in public procurement is essential to ensure that public money is used in an efficient and effective manner, the CCP remarked.
It asked procuring agencies to devise an immediate action plan to address the concerns raised. If these recommendations were not taken seriously, the CCP may take action against such organisations in accordance with the law.
The CCP said the discriminatory conditions have denied a level-playing field to prospective bidders, inhibiting competition from reaching its maximum potential. The recommendations came after an open hearing on the matter on February 17.
They were formulated to serve as guidelines for the procurement agencies in designing tender documents to ensure that no clauses restrict or impede competition.
The CCP has sent its opinion to all stakeholders including the Ministry of Water and Power, Wapda, NTDC, distribution companies, Ministry of Finance, Public Procurement Regulatory Authority, business undertakings and international financial institutions for necessary action.
It described electric power as a very important economic sector, providing the essential input for almost all industrial and commercial activities. Competition and efficiency in procurement activities will directly benefit the overall business climate and activities in the country, and contribute to savings in the public exchequer.
Published in The Express Tribune, April 17th, 2015.
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