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VI. GOVERNMENT PROCUREMENT AND STATE TRADING ORGANISATIONS
Government Procurement
Under the provisions of the Financial Manual 2001 of the Ministry of Finance, an open bidding procedure is the preferred method of government procurement.
Depending on the value of the contract, limited tender may be used for procurements between US$2,000 and US$10,000, and open bidding for procurements over US$10,000. Limited tender is also used in case of limited time. If the necessary capabilities are not available in Bhutan, then international procurement may be necessary.
Invitations for bids are published in the mass media and posted on the Ministry of Finance website (www.mof.gov.bt). The minimum deadline for submission of bids is 30 days for open tenders and 15 days for limited tenders.
Procurement, Ministry of Finance
Jurminla Secretariat
Thimphu, Bhutan
Tel: (975 2) 322223, 322514, 322271 Ext.104
Fax: (975 2) 323154
E-mail: julmin@mof.gov.bt
Website: www.mof.gov.bt
State Trading Organisations
As Bhutan opens up its economy, efforts are being made to privatise commercial (trading) activities, with the exception of three state trading organisations, which hold exclusive rights to selected products.
(a) The State Trading Corporation of Bhutan (STCB) no longer has a monopoly for government procurement as now it operates through the bidding process. The Ministry of Finance still has 51% of STCB shares following partial privatisation in 1997. STCB has exclusive rights to import and export sensitive items (such as explosives) which require a special permit from the Ministry of Home Affairs. For other items, STCB must to compete. (No competition policy is yet in place in Bhutan to regulate fair competition.) STCB remains the main importer of steel, bitumen, vehicles and spare parts, vitamins, computers and office equipment.
State Trading Corporation of Bhutan (STCB)
P.O. Box 76
Phuentsholing, Bhutan
Tel: (975 5) 252286, 252610
Fax: (975 5) 252619
E-mail: stcbl@druknet.net.bt
Website: www.stebl.com.bt
(b) The Druk Seed Corporation (DSC) has the exclusive right to procure and import fertilisers and butachlor (herbicide). It imports seeds and seedlings that are not produced in Bhutan. It also supplies plants and planting materials.
Druk Seed Corporation
Chundudingkha
Paro, Bhutan
Tel: (975 8) 271465, 271462
Fax: (975 8) 271206
E-mail: drukseed@druknet.net.bt
Website: www.moa.gov.bt
(c) The Forestry Development Corporation Ltd. (FDC) is 100% government-owned and holds the exclusive right to log, extract, process and trade timber and timber products in both domestic and international markets. It carries out reforestation programmes as well as research and development work.
Forestry Development Corporation Ltd. (FDC)
P.O. Box 192
Thimphu, Bhutan
Tel: (975 2) 323834
Fax: (975 2) 325585
Website: www.moa.gov.bt
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