Latest update February 9th, 2025 11:49 AM
Feb 27, 2016 News
Government has started making changes with regard to the limits of contracts that Ministries and other state agencies are allowed to independently award.
According to a notice called the “Procurement Amendment Regulations 2016 and published on February 18, in the Official Gazette of Guyana, the Ministry of Public Infrastructure can award construction projects up to $14M.
Before time, under the old procurement system, the hands of the Regional Democratic Councils, Ministries and Agencies were tied when it came to certain amounts.
Under the new regulations, the thresholds have been raised.
Recently, Government explained that the idea behind the changes is to make the procurement system more efficient and reduce the workload of the National Procurement and Tender Administration Board, which handles the awards of all the large contracts.
Under the revised regulations signed by Minister of Finance, Winston Jordan, at the regional level, contracts for goods and services can awarded by authorities there for between $250,000 and $800,000.
For consultancy services, the amount will go up to between $400,000 and $800,000 and for construction between $600,000 and $14M.
At the Ministerial/Department and agency level, contracts for goods and services, (other than consulting), have been increased from $250,000 and $1.5M. Consulting contracts under this category are now $400,000 and $800,000 while construction projects can be awarded for amounts between $600,000 and $2M.
The Ministry of Public Infrastructure, under which significant road and other repair workers are being conducted, can now independently through its tender system, award Goods and Services contracts of between $1M and $6M; consulting contracts between $1M and $5M and construction of between $1M and $14M.
The limits of the Ministry of Agriculture for construction contracts have also been hiked to $14M while goods and services will go up to $6M and consulting between $1M and $5M.
Under the Ministry of Public Health and the Ministry of Public Security, construction contracts can be awarded up to $8M while goods and services between $250,000 and $1.5M and consulting services, $400,000 and $800,000.
The Ministry of Education will now award contracts for goods and services between $250,000 and $1.5M; consulting services $400,000 and $800,000 and construction, of up to $8M.
The new changes will come at a time when Government is making a number of reforms in the state procurement process which in the past was highly flawed and prone to corruption.
A significant amount of monies set aside for state contracts is reportedly being lost to bribery and corruption.
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