Tender goes to most qualified and lowest cost applicant: deputy minister

Tender goes to most qualified and lowest cost applicant: deputy minister
Published 23 August 2019
Soe Min Htike, Sithu

Deputy Minister of Electricity & Energy Dr Tun Naing said at the Union Parliament session on August 21 that the tender for electricity costs went to applicants that passed the technical requirements and had the lowest cost - also explaining why Myanmar Economic Holdings Limited (MEHL) was not picked.



 

 

He says that back in 2016, a total of 200,000 hosehould and 60,500 industrial electricity measurements units were discussed to be directly bought from MEHL while other acessorices were to be done through open tender. An open tender was launched later but was scrapped as applicants were not up to fulfilling the requirements.

There were also other tenders put forward but were cancelled as applicants were found to have conducted unsavory business practices in order for them to win the tenders. 

Similar tenders were put forward in 2017 and amongst the six applicants, only Alpha Power and MEHL passed the technical test. But Alpha Power offered a rate of Ks 8.1 billion while MEHL called for 13.4 billion - a difference of 5343 million Kyats. Thus it was awarded to the cheaper option.

Since then, complaints and appeals have been sent to the Union Minister to reconsider the decision and to pick MEHL over its competitors while other companies also sent in similar letters. 

Dr Tun Naing goes on to mention that it is against the regulations to influence and manipulate the tender process through outside forces including seeking help from authorities in high places. Such attempts by applicants showed willingness to meddle in the ministry’s decision making process, thus the tender was cancelled entirely. 

He goes on to say that the ministry is acting in the best interest of the country with records showing that no one company having won consecutive tenders and that tenders such as purchasing electricity usage tracking units will show that they are being bought for as much as 50 per cent lower while better in quality.