Business

PPADB awards P5bn in tenders

PPADB head office
 
PPADB head office

This significant increase has been attributed to the implementation of carry-over projects that were budgeted for the 2013/2014 financial year.

According to the recently released 2014/15 annual report, the board adjudicated 735 submissions which was a 10 percent increase compared to 667 submissions made in the prior year. From these, Special Procurement and Asset Disposal Committee (SPADC) adjudicated a total of 143 submissions valued at P639 million.

The total value of procurement channelled through PPADB and its committee’s for the 2014/2015 financial year amounted close to P9 billion. This excludes micro procurement by ministries.

“The value is higher than that of tenders awarded by PPADB and its committees during the 2013/2014 financial year which was close to P5 billion,” reads the report in part.

During the reporting period, PPADB exceeded target of generating revenue through contractor registration by 95.3 percent after collecting P11 423 655 from the 12335 contractors that registered. About 39 percent of the registered contractors were for works, followed by supplies, with 36 percent and services at 25 percent.

 “The increase in revenue from contractor registration is as a result of the increased demand for the service. The certification fee was reduced during the reporting period from P20 to P5 per copy in response to customer feedback,” states the report.

Performance regarding contractor registration in the year 2014/15 improved, which represented an increase in the number of contractors from 8239 in the 2014/15 to 12335 registered in the prior year.

However, the board continued to experience delays relating to online contractor registration. Some challenges encountered included low Internet speed in the country, low computer literacy of the contracting community as well as over-dependence on consultants for registration by contractors, which creates community gaps between PPADB and the contractors.

The board also identified challenges in the over-dominance of some contractors who tend to do sub-standard work when not properly supervised and limited participation of international bidders in major projects.

“The board will intensify its support on capacity building with a view to professionalising procurement in the public service to achieve value for money,” states the report.

During the reporting period, the Suspension and Delisting Disciplinary committee received one referral from the board as they considered and concluded two cases.