Procurement for civil construction: PPRA defers approval on request of Secretary DP

ISLAMABAD: The Public Procurement Regulatory Authority (PPRA) has deferred its approval on Standard Bidding Document for procurement of construction (Civil Works) on the request of Secretary Defence Production.

MD (PPRA) stated that the Public Financial Management System “Program for Results” (PforR) is supported by World Bank, wherein Disbursement Linked Indicator (DLI) 3 is linked with PPRA. DLl3 is further divided into three Disbursement Linked Results (DLRs), and DLR 3.2 pertains to publication of mandatory Standard Bidding Documents (5BDs).

He further noted that the Standard Bidding Document for Procurement of Construction (Civil Works) is required to be implemented in all the procuring agencies before December, 2023. Draft Standard Bidding Document for Procurement of Construction {Civil Works) after incorporation of views/ comments received from the stakeholders was placed before the PPRA Board in its 71st meeting held on June 22, 2023 for consideration.

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In this regard, after thorough deliberation the PPRA Board decided as follows: “the Board decided to defer the Agenda item. The Board further directed to prepare the Standard Bidding Document for Procurement of Construction (Civil Works) in consultation with PEC. However, the final Bidding Document so prepared shall be approved subject to final outcome of the Writ Petition No. 1607 of 2023”.

MD (PPRA) further stated that the Authority vide letter dated June 13, 2023, requested Pakistan Engineering Council (PEC) to provide the feedback/ views/ comments on the draft SBD for Procurement of Construction (Civil Works), so that the same may be placed before the PPRA Board.

In response, PEC vide its letter dated June 16, 2023, referred to the Court decision that “-…the final fate of the bidding document so prepared shall be subject to the outcome of this petition”. In addition, PEC stated that PPRA shall refrain from placing the bidding documents “so prepared” before its Board for approval and Approved Minutes of 72nd Meeting of PPRA Board notifying it further.

It was further conveyed that the said matter is placed before the relevant expert committee of the council and the outcome will be conveyed. Reminder in this regard, was also issued on August 17, 2023. However, no input has been communicated to this Authority till date.

MD (PPRA) highlighted that “price Adjustment Formula” is an integral part of the bidding documents. However, PEC has notified the same and intends to implement the same on the ongoing project. PPRA communicated its reservation on it in a meeting convened by the Planning Commission on March 09, 2023. MD PPRA emphasised that issuance of any such document with respect to the public procurement is purely the mandate of the PPRA and the same is also endorsed by Law Division letter of August 13, 2021. The reservation of the Authority was also communicated to the Planning Commission June 27, 2023.

He further added that views/ comments received from three more stakeholders, i.e., Civil Aviation Authority, Ministry of Defence and Ministry of Housing and Works have also been incorporated in the document.

In this regard, improved Draft Standard Bidding Document for procurement of Construction (Civil Works) is being placed before PPRA Board for consideration and approval. The document is considered as live document and will be updated from time to time.

Secretary Defence Production stated that he is waiting for input on the PPRA Draft SBDs for Procurement of Construction (Civil Works) from two to three departments of his Ministry; hence, the agenda item may be deferred. Secretary Communications stated that the draft is required to be deliberated at length from the civil works’ perspective.

He further invited MD (PPRA) along with his team to National Highway Authority (NHA) to deliberate further in this regard.

After deliberations PPRA deferred the agenda item for further consultations on the request of Secretary Defence Production.

Copyright Business Recorder, 2023