The royal court issued orders banning the awarding of government projects to certain companies or even offering them limited tenders.
Sources said the royal orders were issued following an increase in applications by government bodies seeking exemption from terms and conditions in the bidding and government procurement system and demanding that projects be awarded to certain companies.
The demand for exemption is inconsistent with the system of government bidding and procurement, which gives a fair chance for all qualified contractors at a suitable tender cost to bag government projects through public tenders.
The royal decree also directed various government bodies to comply with the regulations and the executive list concerning public tenders and not to submit any requests for exemptions.
Wahib Cimfer, an expert in project management, said: “It is an important step that keeps in mind public interest, which requires distribution of government projects after taking into account risk factors such as the allocation of risks linked with state projects.
“It also ensures the speedy implementation of projects and the diversification of expertise, which will benefit both contractors and the state through expansion of the contractors’ base who deal with government projects,” he said.
“Companies that have monopolized the sector agreed to have defined costs in place for projects and to share the market on the basis of geographic regions and customer-base.”
This, Cimfer observed, had resulted in controlling and manipulating prices, forcing government agencies to deal with certain companies. “Such monopolies lead to a rise in bidding costs because of the limited number of companies that apply for tenders,” he said.
The government bidding and procurement system aims to regulate competition and procurement procedures carried out by government agencies, prevent personal gains and interests, protect public funds and achieve a maximum level of economic efficiency. “The fair process of bidding and competing ensures transparency in all aspects of the bidding process,” Cimfer said.
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