CCP ENSURES LEVEL PLAYING FIELD IN THE PUBLIC PROCUREMENT OF BULLDOZERS

ISLAMABAD, 21 JANUARY 2016:

The Competition Commission of Pakistan (CCP) has ensured compliance by the Agricultural Engineering Department (A&E Department), Government of Balochistan, with the provisions of the Competition Act, 2010 in a tender floated for the procurement of bulldozers by removing anti-competitive clauses from the tender. CCP received a complaint from a supplier of bulldozers regarding restrictive clauses in a tender floated by the Agricultural Engineering Department (A&E Department), Government of Balochistan for procurement of bulldozers. Under the technical specifications, only equipment from USA, UK, EU and Japan were eligible for participation. This restricted, among others, the Chinese equipment manufacturers from the bidding process that are some of the biggest bulldozer manufacturer in the world. The complainant stated that for the past 20 years it has been working in Pakistan with different government departments and private companies. These pre-requisites in the tender document appeared to hinder a level-playing field among various suppliers of bulldozers by ostensibly foreclosing the market to the maximum available competition. Explaining its mandate, the CCP shared its concerns with the A&E Department and other concerned authorities as to competition implications that the inclusion of such restrictive clauses may have on competition in the market./p>

In response, A&E Department acknowledged the competition concerns raised by the CCP and resolved the matter by amending the bidding document and floating the tender again with the omission of country of origin. Some of the benefits that are expected to accrue as a result of this measure are:

a). Provision of a level playing field to all the suppliers of bulldozers in Pakistan.
b). Widest possible competition which leads to more choices, higher value for money, and since public funds are involved savings to the exchequer.
c). Encouragement for innovation in technology by eliminating discrimination against newer entrants in favour of the incumbents.

CCP is appreciative of the prompt response and diligent efforts by the A&E Department, Balochistan to promote competition in the market for public procurement of bulldozers in Balochistan.

Shahzad Ansar, CCP Member Office of Fair Trade & Advocacy addressing a seminar held at the Lahore Chamber of Commerce & Industry as part of the National Road Show on Competition Law organized by the Competition Commission of Pakistan.