Realizing this fact, the government has introduced a legal provision allowing PEs, involved in trading of goods and services, to prepare a separate guideline to make procurement in a fast track mode. They, however, will have to get the guidelines approved from the Public Procurement Monitoring Office (PPMO).The new legal provision has been included in the Public Procurement Act 2007 (Amendment) Ordinance 2015 which was issued last week.
Tanka Mani Sharma, secretary of PPMO, said public enterprises involved in trading of goods and services will not have to follow lengthy procurement process. "They can take procurement decisions on a fast track mode. The new will make them competitive," he added.
The new provision will particularly help PEs like Nepal Telecom (NT) as it can now compete with privately-owned telcos, which keep on upgrading their technology to offer better services, by procuring latest technology in time.
Public procurement process takes at least two months. It can take months if the procuring firms have to go for re-bids.
"Trading and service-oriented organizations like NT need to take procurement decisions as quickly if they are to compete with the private sector," added Sharma.
The new law allows government offices to purchase products and services of PEs without going for open bidding. "The provision has been made to protect PEs with a belief that they provide competitive services," added Sharma.
Altogether there are 37 PEs.
Likewise, the ordinance also allowed government offices to make procurement from inter-governmental organizations without going for tender process. The provision was in the procurement law before it was removed from Public Procurement Act 2007.
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