MEF Issues New Regulations to Speed Up Local Infrastructure Projects Procurement

The Ministry of Economics and Finance (MEF) has instructed all sub-national administrations to accelerate local infrastructure construction projects procurement.

According to Circular No.002 dated 03 March 2022, the new order has been made after the ministry discovered many delays in project preparation, technical review, and payment for construction firms.

Procurement is the process of finding and agreeing to terms, and acquiring goods, services, or works from an external source, often via a tendering or competitive bidding process. (Read more)

Under this new regulation, the Commune-Sangkat administration shall prepare a bidding procedure from January to March of the fiscal year.

Then, the municipal, district and khan administration must add its projects with the project of the commune-Sangkat administration and send it to the capital-provincial administration.

Capital-provincial administrations must send officers to study the project(s) before the end of August and provide approval or disapproval before the end of November of each year.

Local administrations must not pay construction firms in advance. Payment should be done 45% two times during the construction period and another 10% six months after project completion.

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