Allowing some NCB (national competitive bidding) packages in any project gives an opportunity to engage and test the ability of reputable local contractors. In this project it was noted that the local contractors for smaller NCB packages offered some very competitive rates and, with close supervision from the project team, were able to complete and deliver components in a timely manner. However, not every local contractor may be in the best position to handle larger ICB (international competitive bidding) contracts, as was seen in the poor performance displayed under an ICB contract won by a local contractor in joint venture with an overseas partner. The PMU (project management unit) acted swiftly to resolve the issues caused by the poor performance, and all activities under the component could be completed within the grant implementation period.
Integrated Urban Development Sector Project