ISLAMABAD: The Board of Public Procurement Regulatory Authority (PPRA) has deferred approval of standard bidding documents for procurement of construction (civil works), after the members expressed reservations over the “consultation” process and dispute between PPRA and Pakistan Engineering Council (PEC), well informed sources told Business Recorder.
On June 22, 2023, MD PPRA presented the agenda and informed the Board that Public Financial Management System “Program for Results” (P for R) is supported by World Bank, wherein Disbursement Linked Indicators (DLIs)-3 is linked to PPRA. DLR-3 is further divided into three Disbursement Linked Results (DLRs), and DLR 3.2 pertains to publication of mandatory Standard Bidding Documents (SBDs).
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MD PPRA apprised the Board that in compliance with requirement of the said DLI, so far Authority has notified five Standard Bidding Documents with the approval of PPRA Board which have been verified by the World Bank through 3rd party.
He further informed the Board that Standard Bidding Document for procurement of construction (Civil Works) was drafted by the Authority and circulated amongst stakeholders and hoisted on PPRA website for use/ feedback/comments.
He further added that a reminder on April 05, 2023 was also sent to the stakeholders for obtaining feedback/ views/ comments; however, no views/ comments have been received till date except from WAPDA, SBP and Civil Aviation Authority, whereas NHA and CDA sought some time for submission of their comments. The drafted document was also sent to the PPRA Board Members for views/ feedback/ comments (if any).
MD PPRA highlighted that there is a dispute on the development of Standard Bidding Document for procurement of Construction (Civil Works) between Pakistan Engineering Council (PEC) and PPRA.
He further added that at the moment in terms of Regulation 2008 of PPRA, a procuring agency when engaged in procurement of works, shall use the Standard Bidding Documents prescribed by the Pakistan Engineering Council constituted under the Pakistan Engineering Council Act, 1975 (V of 1976).
Moreover, in compliance with the requirement of World Bank DLI when PPRA started development of Standard Bidding Documents for Works, then PEC approached PPRA and conveyed that development of Standard Bidding Documents for Works is the prerogative of PEC only and the same is not mandate of PPRA. Subsequently, PPRA Management referred the matter to Law Division where Law Division argued that as per PPRA Legal Framework development of standard Bidding Document for the Public procurement is the mandate of PPRA.
Besides this fact Draft Standard Bidding Document (Civil Works) was shared with PEC for view/ comments along with three reminders. However, PEC approached Islamabad High Court in Writ Petition No.1607 of 2023 on the plea that Section 2 (XXV) and 8 (p) of PEC Act 1976, authorizes PEC to prepare and issue bidding documents with regard to the engineering works and consultancy services whereas PPRA act does not confer any such power or mandate upon PPRA to prepare and issue bidding documents.
MD PPRA invited attention of the Board to the operative part of the order of Islamabad High Court which is as follows: “Notice. In the meantime, respondent No.7 shall make sure that the standard bidding documents ore prepared in consultation with the petitioner. However, the final fate of the bidding documents so prepared shall be subject to the outcome of this petition”.
A Member inquired whether Pakistan Engineering Council has given any response to PPRA or otherwise. MD PPRA replied in the negative. He further added that the purpose of this explanation is to take PPRA Board into confidence for making a rationale decision.
MD PPRA explained that the Authority has purchased FIDIC manuals of 2014 and a Draft Standard Bidding Documents for Construction (Civil Works) has been developed in line with the said FIDIC manuals of (2017) whereas Standard Bidding Documents of Works developed by PEC and adopted by PPRA is based on the manuals of FIDIC (2011).
Secretary Finance/ Chairman PPRA Board inquired whether the draft Standard Bidding Document for works was shared with Finance Division or otherwise. MD PPRA replied that Draft Standard Bidding Document is for procurement of works; hence, these were shared in particular with the Procuring Agencies engaged in civil works, as well as, generally among all the Federal Secretaries.
Secretary Finance/ Chairman PPRA Board suggested that views/ comments Finance Division may also be incorporated in the draft Standing Biding Document. MD PPRA opined that the comments of all stakeholders shall be incorporated and the improved version of the said Biding Document may be attached with the minutes of this Board meeting.
One of the Board Members inquired whether the Islamabad High Court has passed the final order in writ petition filled by PEC or otherwise. MD PPRA replied that IHC has yet to pass the final order in the writ petition. For now, an interim order has been issued by IHC where Respondent No. 1 (PPRA) has to make sure that the Standard Bidding Documents are prepared in consultation with the petitioner (PEC).
Another Board Member maintained that the Board has to decide whether condition of consultation with PEC imposed by the IHC has been fulfilled or otherwise. Moreover, if PEC has not responded to PPRA does it mean condition of consultation has been fulfilled and if the answer is in the negative then we cannot move further regarding development of the Standard Bidding Document for Procurement of Constructions (Civil Works).
Another Board Member pointed out that simply writing a letter does not constitute consultation and proposed that PEC may be called in a meeting which will constitute consultation.
After threadbare discussion, the Board decided to defer the agenda item. The Board further directed PPRA 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.
Copyright Business Recorder, 2023
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