Finance rules amended to permit project awards without bidding
According to the amendment, projects approved by the Cabinet or a Cabinet committee may now be undertaken through single-source procurement or without tender.
The government has amended the Finance Regulation to allow the awarding of certain projects without a competitive bidding process.
According to the amendment, projects approved by the Cabinet or a Cabinet committee may now be undertaken through single-source procurement or without an open tender.
Previously, the Finance Regulation allowed procurement of goods and services without bidding and permitted private parties to submit unsolicited proposals.
Under the latest amendment:
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Projects that aim to improve the basic needs and quality of life of the public, and
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Special projects related to security services may be approved by the Cabinet or a Cabinet committee.
The awardee for such projects will be determined based on the advice of the Ministry of Finance, following a submission by the relevant office outlining the reasons for the award decision.
Unlike previous rules, the amendment no longer requires direct approval from the Finance Minister for each individual project.
A separate change to the Finance Regulation grants the Finance Minister the authority to exempt certain projects from providing bid security, performance guarantees, or advance payment guarantees.
Additionally, the minister may now authorise advance payments of up to 15 percent of a Public Sector Investment Programme (PSIP) project’s total cost, upon request from the project awardee.
The amendments came into effect on 26 February 2025 and will remain valid for a period of two years.
