Impact of tender procedure on the performance of doner funded projects in Sri Lanka

Abstract

The World Bank has it's own procurement procedures and documentation to be followed by the borrowers of the bank. The Bank dictate these procurement procedures to safeguard their interests. By this act, the benefit gained from the project often diminishes and the employers' procurement and contractual options that could be used to address the real country specific problems are neglected. Thus, the increasing procurement problems and failures indicate the importance of re-appraisal of such procedures and documentation. This study is aimed at first, investigating the impact of procurement method, more specifically the tendering process, on the perforniance of the World Bank funded projects in Sri Lanka. Second, to compare evaluate the relevance of the wold bank procurement procedure and the government of Sri Lanka procurement procedure for the success of projects. The study revealed that the procurement process significantly affect the performance of the World Bank funded projects. Specially there is a grave concern on the time and quality targets of world bank projects. Cost targets seemed to be reasonably met by the contractors. The possibility of enhancing the performance by introducing country specific. procedure is workable only for few factors. In general, the possibility of enhancement is rather marginal.