Sherpa Hossainy's Blog

Myanmar Issues New General Regulation on Tenders

Posted in Business, Legal, Myanmar, Yangon by Sherpa Hossainy on July 9, 2013

Published in Myanmar Business Today (Vol 1, Issue 16) on May 23, 2013


The President’s Office of the Union of Myanmar has recently issued a directive with rules that government departments need to follow with respect to tenders.

The rules, under directive no. 1/2013 titled “Tender Rules in Allowing to Conduct Investment Activities and Economic Activities”, are applicable to oil and gas tenders, mining, tenders for government land, infrastructure BOTs and service activities such as telecommunication.

The tender rules cite “the need for transparency, accountability, responsibility and the possibility to inspect in allowing to conduct the respective investment activity and economic activity by government departments and organisations.”

The rules set forth a number of general rules that the government departments must follow with each tender they organise, whether it is for purchasing goods or services, construction projects or allowing an economic activity by enterprises.

“The tender rules will apply immediately, for example to the onshore and offshore oil and gas tenders, the ongoing infrastructure projects and the telecom tender. A number of these tenders are actually already in compliance with the new tender rules, as far as we can see,” Edwin Vanderbruggen, partner at VDB Loi, a leading law and tax advisory firm with offices across Southeast Asia, told Myanmar Business Today.

The rules require a government department to organise a tender committee, with representatives of the region or the states if needed, which will set out the tender rules “precisely” in advance. The committee will also have to invite all the bidders at once to evaluate the submitted prices.

The tender will have to be properly advertised in newspaper and on websites at least one month in advance, the rules say, while bids must be opened in public, meaning before representatives of the bidders.

The government department must ask for a deposit from the bidders and assess their financial background, according to the rule. The rules also provide specific rules for tenders for purchases, construction, land tenders, and services.

Employment to be provided by a bidder in the appropriate region comes forward throughout the tender rules as an important factor.

Tenders for land leases are largely to be decided on the prices offered in the bids, Edwin said.

According to the rules, delays or flaws in implementing the activity must be documented and investigated by the government department.

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