News
Open competition rule for unsolicited project proposals; new guidelines announced
View(s):By Namini Wijedasa
Unsolicited project proposals must be submitted via open competition and must adhere to procurement guidelines with the most advantageous proposal being selected, new rules published by the Finance Ministry state.
The project management guidelines—released by the Ministry’s Department of Management Audit in consultation with other Treasury Departments—say a review of local and foreign-funded development projects reveals that “most” of them did not yield expected results relative to the money spent. The majority were hit by economic, political, social and administrative issues. The Ministry calls this a key factor contributing to Sri Lanka’s economic crisis.
The comprehensive new project management guidelines cover the entire process from planning, appraisal, implementation, monitoring and completion to handing over of the project.
Separately, the National Procurement Commission (NPC) also gazetted the country’s new national procurement guidelines this week—the first revision of these poorly-followed rules since 2006. However, the accompanying manual instructing how the guidelines must be operationalised and implemented is yet to be published while a separate procurement law is still in drafting.
The new procurement guidelines for the first time include “collusive practice” as a prohibited activity. This is when two or more parties connive “to achieve an improper purpose” including attempts to adversely influence competition and price through bid-rigging (where competing parties collude to determine the winner of a bidding process). Also defined as prohibited are corrupt, fraudulent and coercive practices, and obstructive actions.
Under the International Monetary Fund Programme, Sri Lanka undertook to establish an enhanced regulatory framework for treatment of unsolicited proposals, including how such proposals can be received and evaluated. The method has become a pervasive mechanism for handing out all manner of projects, including high-cost infrastructure development and initiatives like the controversial VFS visa processing scheme.
The NPC’s procurement guidelines, however, have no reference to unsolicited proposals. There is only a section on direct contracting (a method involving a single source, no competition), stating that it “may be an appropriate method under special circumstances”.
Commission Secretary D. C. Siribaddana said unsolicited proposals will be addressed in yet another new set of procurement guidelines covering public-private partnerships being drafted by the National Agency for Public-Private Partnership of the Finance Ministry. The NPC will also gazette separate guidelines, each, for consultancy procurement and contract management, and pharmaceutical and medical products (this last one will be funded by the Asian Development Bank).
Meanwhile, the Finance Ministry’s project management guidelines have highlighted a series of issue that have led to “the failure to achieve the expected outcomes, or the outright failure” of projects. These include weaknesses in identifying which projects to undertake and the planning of them. It refers to “the selection of high-tech and high-cost projects unsuited to Sri Lanka’s socio-economic conditions”.
There have also been shortcomings in accountability and management (such as diversion for resources allocated to the project for other purposes); inability to maintain continuity in inputs, including funding, manpower, and technology; and policy instability—with frequent policy changes disrupting continuity, sometimes leading to mid-project suspension for insufficient support for it to be completed. Among other causes are inadequate monitoring and evaluation, neglect of environmental and social impacts, and insufficient risk management.
The guidelines have collated all previous circulars on project management including one issued last year that states “government institutions should not directly engage with development partners when formulating developing projects for foreign financing, without formal approval for project implementation…” This is another condition that could discourage unsolicited proposals, procurement experts said. ReplyForwardAdd reaction
The best way to say that you found the home of your dreams is by finding it on Hitad.lk. We have listings for apartments for sale or rent in Sri Lanka, no matter what locale you're looking for! Whether you live in Colombo, Galle, Kandy, Matara, Jaffna and more - we've got them all!