Colección: La Educación
Número: (117) I
Scenario of Events
A Project Management Team Cabinet agreed on 3 August 1979 to a schedule of activities culminating in the initialing of a contract by 12 October 1979, and appointed a Committee under the Chairmanship of the Permanent Secretary, Ministry of Education to take the necessary action.
In pursuance of the Cabinets decision, both local and international firms were invited to submit proposals for the
provision of ject Manage:
Nineteen (19) firms responded to the tender invitation and, following examination by the Cabinet-appointed Committee, nine (9) were short-listed in order of priority with a view to entering into negotiations.
When the decision was taken to appoint the short-listed team under the Chairmanship of the Permanent Secretary, Ministry of Education, there was no specific provision in the laws of Research Country entitling the Central Tenders Board to appoint consultants in the field of project management. However, between the date of the Cabinets decision (3 August 1979) and the time the Cabinet-appointed Committee had completed its exercise of short-listing the respondents, the Central Tenders Board Ordinance had been amended (assented to on 7 September 1979) to assign responsibility to the Central Tenders Board for the appointment of management consultants.
In light of the above, the Permanent Secretary, Ministry of Education, as soon as he was aware of the existence of the legislation referred to above, referred the matter of appointment of a management team to the Central Tenders Board on 15 November 1979.
When it had become clear that the 16 October 1979, date of loan effectiveness could not be met in view of the fact that the conclusion of an agreement for the employment of the Project Management Team had not been finalized, the Cabinet agreed that the World Bank should be requested to extend the effective date from 16 October 1979, to 15 December 1979. This effective date was subsequently further extended to 31 May 1980.
The joint-venture firm of D. B. Construction was ranked first among the nineteen (19) organizations which had submitted proposals. However, negotiations could not be successfully concluded with them by the Central Tenders Board thereby necessitating, in keeping with standard international practice in these matters, the commencement by the Central Tenders Board of negotiations with the second-ranked firm, Fiducial Construction Company of the United Kingdom.
Following negotiations with representatives of this firm, on 4 February 1980 the Central Tenders Board sought the advice of the Permanent Secretary, Ministry of Education on the proposal submitted by the firm before making an award.
After noting that the fee structure as proposed by Fiducial Construction Company excluded provision for taxes, social charges (changes), duties, and related costs that may be levied on the consultant or its staff, thereby requiring that the client accept responsibility for making such payment direct without charge to the consultant, the Permanent Secretary, Ministry of Education sought the advice of the Permanent Secretary, Ministry of Finance on 6 February 1980.
In a memorandum on the matter to the Permanent Secretary, Ministry of Finance dated 21 March 1980, the Chairman of the Board of Inland Revenue advised that in view of the fact that the Double-Taxation Treaty with the United Kingdom is an agreement made between the Government of Research Country and that Government, it would be difficult to justify the granting of any tax concessions over and above that provided in the Treaty.
The advice of the Chairman of the Board of Inland Revenue necessitated the Cabinets approval for the Central Tenders Board to renegotiate a price with Fiducial Construction Company which included the payment of taxes and for further extension of the date of loan effectiveness to 30 June 1980. The request for extension of the date of effectiveness to 30 June 1980 was communicated to the World Bank on 27 June 1980.
In a cable dated 7 July 1980 the World Bank advised the Permanent Secretary, Ministry of Finance that the date of loan effectiveness had been further extended to 31 July 1980, so that all required conditions could be satisfied within the terminal date for the Loan Agreement.
During the period 17-23 July 1980 an inter-Ministerial Committee met with the Chief State Solicitor to draw up an agreement and hold discussions with a representative of Fiducial Construction Company for the provision of project management services.
Following renegotiations with the firm, Fiducial Construction Company and based on a revised proposal inclusive of taxes, the Director of Contracts awarded a contract to Fiducial Construction Company on 27 July 1980.
This Draft Agreement was approved by the Cabinet on 1 August 1980 and submitted for the World Banks approval on 5 August 1980, prior to signing by the Permanent Secretary, Ministry of Education and the firm of Fiducial Construction Company.
By cable dated 13 August 1980, the World Bank advised that it had no objection to the Agreement except for a certain clause which the Bank suggested should be modified to remove reference to the World Bank as an Arbitrator in the event of any dispute.
As a consequence of the Banks observations, the Chief State Solicitor was requested to amend the said clause and this amended clause was submitted for Cabinets approval on 14 August 1980.
The amended Agreement was submitted to Fiducial Construction Company on 22 August 1980 through the Ministry of External Affairs for signing and sealing.
By cable dated 27 August 1980, Fiducial Construction Company advised the Permanent Secretary, Ministry of Education that they had signed and sealed the Agreement on 26 August 1980. Following receipt of this information, the Permanent Secretary, Ministry of Education signed the Agreement on behalf of Research Country on 27 August 1980, and this information was cabled to the Bank on the same date.
By cable dated 29 August 1980, the Bank advised that it was satisfied with the evidence provided that the Agreement had been executed.
The full complement of staff comprising the Project Management Team took up their appointment on 18 September 1980.