Challenges of procurement of works through international open tendering method: a case study on moghbazar-mouchak flyover project
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Date
2015-02Publisher
BRAC UniversityAuthor
Samad, Kazi AbdusMetadata
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On the basis of a number of arguments by procurement experts and from findings of some
international organizations on International Open Tendering Method (IOTM) procurement
procedures, this study has sought to investigate the extent of its practices and major
challenges at the procurement for projects implemented in Bangladesh by the Local
Government Engineering Department (LGED).
This study has started with reviewing different aspects of IOTM through literature review. It
has found that there exist differences in IOTM procurement procedures followed by different
donor agencies like World Bank, ADB, IDB, DFID, USAID etc. It has found that IOTM as an
essential system in implementing major and complicated public works in Bangladesh
particularly by the LGED. Openness and transparency in IOTM is a must. There is no scope
of corruption in decision making process of tender evaluation stage.
This study also finds that procurement guideline of World Bank and ADB is very strong and
play dominant roles in the procurement policy process. It works in a well structured
framework. There exist strong internal control and accountability mechanisms making
decision making process unique.
In-depth investigation depicts that procurement official have the willingness and proper
attitude to serve the people. This study also reveals structural, managerial as well as efficiency
problems in the IOTM procurement. World Bank and ADB’s procurement guideline is still
flexible and decentralized. Official jobs for procurement, authority and responsibilities are
clearly specified. Both the World Bank and the ADB emphasized in favor of delegating
financial power to the procurement officials. They felt that there is scope for improving the
information disclosure system. Concepts like responsibility, transparency and good
governance exist in procurement guidelines of the World Bank and the ADB. If structural
deficiencies can be eliminated, level of ensuring efficiency of using IOTM procurement will
be enhanced.This study concludes that the total time required for invitation of tender, evaluation and
contracting is less than that of PPR 2008 of Bangladesh in the International Procurement of
works. According to the ADB Procurement guidelines 6 to 8 weeks are needed from
advertising to Evaluation and Contracting for the procurement of works internationally and
according to the WB Procurement guidelines, 6 to 13 weeks are needed from advertising to
Evaluation and Contracting for the procurement of works internationally.
On the other hand, according to PPR 2008 Procurement guidelines, 6 to 12 months are needed
from advertising to evaluation and contracting for the procurement of works internationally
which is too much. But the time required from invitation of tender to evaluation and
contracting depends on donors. The World Bank, ADB and JICA (Japan) takes less time
compared to others. SFD and IDB take more time for concurrence and approval.
So, for smooth implementation of projects having major and complicated works in public
sector of Bangladesh in general and for LGED in particular the existing time frame in the PPR
2008 for procurement through IOTM procedure should be reviewed.