Business Desk :
Banks from now on will not be allowed to withdraw the Letter of Commitment (LoC) for government tenders without approval from the procuring authority.
The parties participating in procurement tenders must submit a letter of commitment for the bank’s undertaking for the LOC as per PW3-7 form of Standard Tender Document (National) for Procurement of Works, reads a Bangladesh Bank (BB) circular issued on Wednesday.
The directives were issued as per Section 45 of the Bank Company Act 1991 in a bid to ensure transparency, prevent financial loss and expedite the government’s procurement process.
It has been observed that some banks are withdrawing their issued letter of commitment before the end of the tender process. Such actions may lead to higher bidders securing a tender instead of those with the lowest offers, the central bank said.
This not only hinders the government’s procurement process but also exposes it to huge losses, it added.
“So no bank can withdraw the letter of commitment during the tender process without approval from procuring authority,” the central bank added.
