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Policies and Guidelines >> Tender and Award Process

In keeping with its focus on reducing implementation delay and promoting transparency, the Guidelines specify the tender evaluation committees for infrastructure projects as a mix of members from the Executing Agency/Line Ministry, other Ministries and investor representatives/non-government.

The following criteria is used for pre-qualification in a Large Infrastructure Project:


(a)
Establishment as a legal entity in Bangladesh
(b)
Sufficient technical and managerial capability
(c)
Financial capability to carry out the Project
(d)
Experience in developing similar projects
(e)
Experience in operating similar projects
(f)
Experience in ownership of similar projects


For Small Infrastructure Projects, a relaxation of the requirements in (c), (d) and (e) above has been specified to ensure that local entrepreneurs do not face discrimination. The required experience and ownership should be for process or industrial plants or other non-infrastructure investments.

A tendered for a Private Infrastructure Project needs to submit an envelope containing the technical and financial proposal. The evaluation criterion for the financial envelope may be:

(a)
lowest present value of tariff, tolls, fees or charges;
(b)
highest present value or percentage of revenue sharing;
(c)
lump-sum amount of cash to the Government;
(d)
shortest Contract term;
(e)
lowest present value of subsidy over the contract period;
(f)
firm commitment for ongoing investment, capacity expansion, more connection etc.;
(g)
highest present value of lease payment or rent;
(h)
Lowest present value of management fees.


In order to reduce implementation delay, indicative times have been given for each activity and government approval during the tender process. Implementation is segregated into seven stages from conception to commercial operations. Unique milestones separate these stages. PICOM monitors and expedites the movement of Projects through these stages, using good project management techniques which will lead to early completion of the project.


 
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