Panel submits reform in Public Procurement Act

Panel submits reform in Public Procurement Act

A parliamentary sub-committee today submitted an initial report on reform plan in the Public Procure Act. The Finance Committee – under the parliament – was asked to study flaws in Public Procurement Act and submit a report. The sub-committee has concluded need for reform in long bidding process provision of awarding contract to the lowest bidder are mobilisation fee are some of the major flaws in the current Act. The mandatory provision of awarding contract to the lowest bidder has been affecting quality of work, concluded the initial report. The sub-committee that has also concluded that the Act lacks provision to punish contractors for delayed and defect liability period will prepare a detailed report to revise Public Procurement Act. It has also recommended a strong monitoring – to check malintentioan of the bidders – apart from checking a track record of bidders before awarding them contracts. The government is – under its second tier economic reform programme –amending Public Procurement Act, 2007 also to expedite development projects that has seen low spending in last seven years due to the Act. The sub-committee members visited various development projects including Sikta Irrigation Project, Postal Highway Project, Nepalgunj-Kohalpur Road Project and Ilam airport project, held discussions with development partners, related government agencies, and private sector, before making recommendations.
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