Barker raises concerns over substandard contracts

WHILE the National Procurement Act embraces the local content of contracts below K10 million reserved for nationals, it must not be a mechanism for enabling substandard contracts, Papua New Guinea Institute of National Affairs director Paul Barker says.
“One wants to make sure that the national contractors and actually having to compete with each other legitimately and really produce a high standard because substandard contracting whether it is done by a national or international company is the same thing when it comes to the actual provision of those goods and services to the final users,” he said.
“Those final users are those people and businesses that use those roads and other infrastructures and services.”
Barker made the comments during a panel discussion on the National Procurement Commission Reform hosted by the PNG Australia Alumni Association last week.
“Some of the contracts here end up with problems very early on in the piece and you end up with high maintenance costs so trying to meet those standards, making sure that the whole process involves adequate oversight, supervision all the way through is crucial,” he said.
Finance secretary Dr Ken Ngangan said by law contracts between K10 million and K30 million would be a joint venture for national and foreigners, anything above K30 million was open.
“So we have got national interest, factored in law in the new national procurement act,” he said.
“Again that is subject to capacity in terms of finance and technical abilities.”