Rule barring foreign firms in projects below Rs3 billion cost limits competition, stakeholders say

Contractors say the threshold was increased from Rs1 billion to Rs3 billion to benefit select large contractors in a way to promote collusion and to bleed state resources.

A provision in the newly amended Public Procurement Rule barring foreign contractors from participating in construction projects with the cost less than Rs3 billion has stoked concerns if it could limit competition and promote collusion among big contractors.