Challenges of procurement of works through international open tendering method: a case study on moghbazar-mouchak flyover project

Abstract

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.