PPP infrastructure project procurement undergoes reforms
Sri Lanka goes ahead with public procurement reform in the implementation of private sector mega infrastructure projects under Public Private Partnership (PPP) basis.
A large sum of scarce resources has been wasted due to lack of procurement planning, contract management, and more significantly, disregarding the key principles of accountability, transparency, and value for money (VFM).
In the recent past a number of construction projects has commenced without proper budgetary allocations in the annual budget.
Some of the contracts appear to have been awarded without observing the fundamental principles of governance in procurement, such as transparency, accountability, and VFM, a senior official of the Finance Ministry told the Business Times.
Many contracts have been selected without following an open and competitive selection procedure, depriving public organisations of obtaining VFM, and also denying the public from reaping the benefits from large mega-infrastructure projects, he disclosed.
In order to ensure such PPP transactions are carried out through open and transparent procedure, the Treasury in consultation with the National Procurement Commission (NPC) is now preparing new PPP guidelines, a public finance circular issued by Treasury Secretary Dr. R.H.S Samaratunga revealed.
These guidelines will be addressing the present day requirements, based on the international best practices, he added.
Until the new PPP guidelines, which are currently under review by the NPC, are finalised and published, existing guidelines on Tender Procedure Part-11 of 1998 on Private Sector Infrastructure are the applicable set of guidelines for such PPP transactions, the circular stipulated.
It has been revealed that some of the PPP projects are being carried out within the provisions of the Government Procurement Guidelines -2006.
In accordance with these guidelines the procurements are handled by a Cabinet Appointed Negotiating Committee assisted by a Technical Evaluation Committee.
In future, government institutions should refrain from following such provisions and the PPP procurement process should be carried out by a Cabinet Appointed Negotiating Committee and a Project Committee.
Meanwhile Sri Lanka’s much awaited public procurement guidelines with necessary amendments to the relevant gazette have been forwarded to President Maithripala Sirisena enabling him to present it in Parliament via the Leader of the House in accordance with the Constitution.
This was disclosed by NPC Chairman Eng. B. Nihal Wickramasuriya adding that the Commission has already gazetted the new procurement guidelines and these are subject to Parliament approval.
The relevant gazette and other documents were submitted to the Presidential Secretariat for the consent of the President and later to be presented to Parliament.
According to the gazette, the new procurement guidelines will replace all previous procurement guidelines, circulars and directives within 30 days following Parliamentary approval to become law.
He noted that the 30-day period will provide sufficient time to make any further amendments relating to these guidelines.
Digitalisation of information in public procurement and adherence to the Right to Information Act were among the new inclusions under the new guidelines.