DANIDA-funded tender project draws flak

By Lakwimashi Perera

The award of the tender for the DANIDA-funded Greater Kurunegala Water Supply Project is raising questions over governance and transparency. A water sector specialist voiced concerns about the unequal treatment given to the two bidders. MT Hojgaard and E. Phil & Sons are both Danish companies as is required by the tender which is funded by DANIDA, the Danish government funding agency.

The Sunday Times learns from reliable sources that the bid made by MT Hojgaard was disqualified due to an internal miscommunication between the National Water Supply and Drainage Board (NWSDB) and the Cabinet Appointed Procurement Committee (CAPC). The reasons given for the disqualification was that MT Hojgaard did not fulfill the tender requirements and therefore the CAPC had declined the recommendations of the Technical Evaluation Committee (TEC).

The dispute is due to a clarification sought by MT Hojgaard regarding the waste treatment process. While the NWSDB answered a query raised by MT Hojgaard as to whether an alternative (to the suggested UASB system) could be proposed and whether any priority would be given to any bidders who propose alternative systems, as affirmative and negative respectively, the CAPC has denied the suggestion of an alternative, disagreeing with the NWSDB.

The tender was originally called in September 2005 but there were no bidders as the required evaluation criteria could not be met. The tender was re-issued in February 2006 and subsequently the criteria was relaxed at the request of NWSDB and DANIDA.

NWSDB General Manager K. L. L. Premanath told The Sunday Times that the evaluation report has been sent to DANIDA, adding: that it was the funding agency when asked if DANIDA had the final say on the matter. Sources said that the other bidder had high connections with the Government.