The government is set to amend the existing law and rules in relation to public procurement (PP) to preclude a single contractor from getting too many projects, Planning Ministry sources said.
Under the existing Public Procurement Act 2006 and its supporting rules, big contractors usually get a large number of projects while a particular contractor bags so many projects at a time.The practice is depriving comparatively small and new contractors of getting the government development work. It is also creating a scope of wastage of public money in some cases, analysts say.
Central Procurement Technical Unit (CPTU) under the Ministry of Planning has already started a process to amend the existing legal framework to put an end to such practices.
The move to address the loopholes in the existing law come after the news surfaced that the detained Juba League leader GK Shamim bagged some 17 projects alone.
In a recent Ecnec meeting, Prime Minister Sheikh Hasina also raised the issue and questioned how a single contractor got so many projects, Planning Ministry officials said.
After this, CPTU moved quickly to amend the law to prevent such incidents.
It is also going to launch an electronic contract management system so that contractors cannot show lethargy during project implementation, sources added.Once the electronic contract management system is put in place, both the government agency and contractors are expected to get equally benefit from it while project implementation will be faster.
“Under the existing law, large contractors can bag most of the projects legally. On the other hand, a single contractor can get more than one work,” commented a high official of Implementation Monitoring and Evaluation Division (IMED) wishing annomity.
“Smaller and new contractors are being deprived due to the current practice. So, the initiative has been taken to stop this,” he pointed out.
CPTU held a meeting last month to find out the problems in the existing law and rules and how to fix them. It also sat last week on the same issue, sources said.
Apart from procurement act and rules amendment, disscussion was also held on bringing reforms to CPTU and turning it into Bangladesh Public Procurment Authority for its more effectiveness.
Meanwhile, electronic contract management system will be introduced to the tenders of LGED, Roads and Highways Department and Rural Electrification Board (REB) on a limited scale from Thursday.