Three of the island’s major private sector organisations are again expressing disappointment at the recent decision by the Office of Utilities Regulation (OUR) to further delay the bid process for the 360 Megawatt Generating Project.
The organisations have also expressed alarm at the decision by the OUR to also remove the requirement for an up-front bid bond to be posted at the same time as submission of the bid.
In a joint news release yesterday, the Jamaica Chamber of Commerce (JCC), Jamaica Manufacturers’ Association (JMA) and the Private Sector Organisation of Jamaica (PSOJ), said that they were alarmed at these latest developments, which have come just two working days before the previous July 29 deadline.
According to the organisations, “the bid bond serves the critical purpose of mitigating against (i) the presentation of frivolous, unrealistic, initially-low bids that upon award require further negotiation with the OUR, and/or (ii) the presentation of apparently attractive bids, devoid of substance, that lack the appropriate due diligence and serious consideration, on the part of the sponsor and investors, that would only come after award.
“A removal of the bid bond requirement with bid submission is therefore an invitation for mischievous bid behaviour, delays and false promises. In fact for a project of this size, any bidder that is reluctant to provide a substantial bid bond must be viewed with some skepticism,” the statement said.
The private sector organisations said that they are cautioning the Government against fostering an environment that incentivises these kinds of strategies in such an important project that is needed urgently for the country’s economic growth.
According to the groups, the up-front provision of a substantial bid bond is a normal procedure in major infrastructural bids in Jamaica and worldwide, and this current move does not follow best practices, adding that while they reluctantly accept that the delay seems to be a foregone conclusion, they are strongly urging that the bid bond requirement be reinstated immediately, in order to ensure that transparency and credibility is maintained throughout this process.
