• Public institutions to be required to identify technical and financial specifications, and decide awarding dates before bids are announced.
• Advance payment, a condition for the purchase of project equipment and materials.
• Letters of guarantee to be seized in the event of default
• Work to continue on holidays to speed up the completion of government contracting projects.

The Minister of Finance, Dr. Boutros Ghali, has introduced amendments to the executive regulations of the law on bids and tenders for tighter controls and smoother procurement processes by the government, while protecting the rights of dealers.

Under the amendments, public institutions will have to abide by certain guidelines prior to the announcement of tenders and bids. These include a full list of all general and technical specifications, all items, goods and works involved, and a copy of the draft contract to be signed, noting the rights and obligation of the contracting parties (the public institution and the winning bidder), the Minister said.

Procurement departments at public institutions will be required to file a memo to secure the necessary approvals, propose and explain optimal contracting methods, and suggest a timeline for the tender. This includes a deadline for examining bids, as well as the expected dates for the announcement of the tender, opening the technical and financial envelopes, landing the contract and publicizing the winner, Dr. Ghali elaborated.

It will also be necessary to decide a time framework to execute the tender, supply the contracted goods and complete the whole process, he said.

Dealers involved in governmental purchases will no longer be restricted by specific advance payments. Instead, these amounts will be directly used to supply equipment and materials needed to commence work effectively in the contracted project, Ghali noted.

To preclude manipulation, contractors will be required to identify all equipment, material and arrangements that are to be provided under the advance payment. In the event of foul play, the contractor's letter of guarantee will be seized as a penalty.

Price differentials will not apply to materials and equipment covered by the first installment. The winning bidder will normally procure the necessary items as soon as the contract is awarded and the first installment is paid, Dr. Ghali said.

Contractors will be allowed to apply a shift system and continue to work during weekends and official holidays to speed up the completion of the works in question, he added.

(Source: Ministry of Finance)