PHILIPSBURG:--- Prime Minister Dr. Luc Mercelina has addressed escalating concerns about the bidding process and the awarding of contracts for projects managed by the National Recovery Program Bureau (NRPB). The discussion, which focused on the reconstruction of the library, the Charles Leopold Bell School, and Sr. Marie Laurence School, brought attention to challenges faced by local contractors, the influence of World Bank procurement guidelines, and recent developments in the withdrawal of a previously awarded contract.
Prime Minister Mercelina clarified that the bidding and contracting for these projects are governed by procurement rules set by the World Bank, which oversees a €550 million trust fund provided by the Netherlands for recovery efforts. "The procurement rules are determined by the World Bank, not the Ministry of General Affairs or the NRPB," he stated, emphasizing the government's limited control over these regulations. However, he acknowledged that the stringent procurement standards have created significant hurdles for local contractors, many of whom struggle to meet the qualifications required by the World Bank.
A Chinese company secured the contract for these school projects at an earlier stage of the bidding process. However, the government later withdrew the contract, reflecting underlying inefficiencies in the procurement system.
It was revealed that no permits had been issued to the company before the withdrawal, which has now necessitated a new bidding process. "The system was not working efficiently to guarantee progress," Mercelina admitted, citing poor communication and misalignment between international standards and local practices as contributing factors.
Efforts are now underway to redefine the procurement framework to accommodate local participation better. Government representatives and the World Bank have initiated discussions to reassess the rules, allowing local contractors improved access to future opportunities. "We now have an opportunity to rebid, giving local companies a more accessible chance to participate in executing these projects," Mercelina noted.
He highlighted the importance of moving quickly, given that the funding from the Netherlands must be utilized by 2028. "We are accelerating the process to ensure we can move forward efficiently with the library and school projects. It’s a brand-new phase, and we are committed to enhancing channels for local involvement," he said.
This is not the first time high-profile public contracts have sparked controversies in the region, referencing the VAMED Group case. The Austrian healthcare contractor took national health insurer USZV and the former Minister of Public Health, Social Development, and Labor (VSA) to court after USZV awarded the contract for constructing the New General Hospital to Italian firm INSO. The legal battle culminated in a settlement, with a sum of one million dollars paid to VAMED following the dispute.
This case underscored the challenges of aligning competitive procurement processes with transparency and fairness, as well as the financial implications of resolving such disputes.
The government's revised approach to procurement seeks to avoid similar pitfalls. By promoting inclusive practices that respect international funding guidelines while fostering opportunities for local businesses, the administration aims to strengthen economic participation across sectors. These adjustments are seen as a necessary step toward achieving recovery goals within the constraints of the allocated timeline.
