THE ISSUE of transparency in relation to awarding government contracts for services has been a topic for discussion for some time now. There have been indications in the press which point towards government officials not always ensuring best practices are kept and value for money is received. From speaking with people and reading some of these articles, the impression is given that government contracts (mainly infrastructure) awarded is biased. As someone who has some knowledge of the current systems, I have decided to shed some light on the matter of public procurement.
In this the first of two articles, I will examine the procurement process outlined by the National Procurement and Tender Administration Board (NP&TAB) and other systems which were developed over the past ten (10) years.
The Government of Guyana (GoG) is by far the largest procurer of goods and services in Guyana. Public Works and Construction Services account for the greater value of procurement. In 2003 with the assistance of the World Bank (WB) and other donors, there was the completion of the Procurement Act of 2003, which was passed in Parliament and assented to by His Excellency.
Approximately 50%-60% of the contracts are funded by donors including the Inter-American Development Bank (IDB). The systems employed by the donors are rigorous and precise. In the awarding of contracts, the NP&TAB would advertise publicly (in the newspapers and on the Government’s website) to interested bidders for whatever good/service is required. After the bids would have been received, an evaluation is done. The bids are evaluated mainly for compliance with the technical requirements, financial capacity and evaluation criteria required. This is done by a committee of experts evaluating each tender. Upon completion of the evaluation, a recommendation is made by the committee and forwarded to cabinet for its approval. The report is reviewed by cabinet and the pronouncement on awarding the contract is given usually in the form of a “No Objection”. This process has been employed since the Procurement Act was developed in 2003 and continues to serve us well.
The donors, in addition to the process instituted by the GoG, have insisted on several additional requirements outside of the Procurement Act in order to grant a “no-objection” before awarding the tender. In tandem with the operations of the NP&TAB, the donor agencies ensure the procurement procedures would have been transparent leading up to an award of contract. Rigid compliance to the bidding documents are also evaluated and pronounced upon. An additional safety measure taken by the donor agencies is their insistence that a “no objection” from the individual donor is required prior to the awarding of contracts partially funded and/or fully funded by them.
Over the past five years, there have been tremendous efforts by the donor agencies to ensure that there is value for money for all Loans/Grants to the GoG. Prior to that, in May 2009, the United States Agency for International Development (USAID) assisted the NP&TAB in formulating a Procurement Hand Book (Guide to the Public Procurement Procedures) which will be adopted for future procurement.
Additionally, to assist the government with the competencies required to institute a sound and reliable procurement process, the IDB over the past five years conducted monthly procurement forums for all officers including the staff of the NP&TAB where requisite training/advice was provided. This forum has proven to be an effective mechanism for ventilating tender issues.
In conclusion, one can say that government has established the necessary legal framework and the regulatory institution in reforming the process. The legal requirements and those instituted by the donors have aided in the continued efforts to eradicate insecurities in the public procurement process. As a result, Guyana has made significant progress to reach higher standards of integrity, transparency and value for money than those which were viewed in the past.
Transparency in procurement
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