Finance Ministry completes executive regs for Public Contracts Act
LEGISLATION WATCH- The Finance Ministry has completed the executive regulations of the Public Contracts Act and will send them to Cabinet for review, Youm7 reports. The new regulations aim to promote fair competition for government tenders, increase interest, and improve the transparency of the bidding process. The regulations lengthen the payment period for tender participants, and cap the rate of primary insurance at 1.5% of the estimated value of the process. An electronic procurement system, automatically updated to ensure transparency, will also be set up.
Background: The bill (previously known as the Auctions and Tenders Act), which originally passed the House of Representatives last July, aims to decentralize and streamline government tenders as well as support SMEs and entrepreneurship. The Finance Ministry said in December that SMEs will get priority treatment and a 20% quota of government tenders under the law.