Minister of Finance Ibrahim Ameer has said efforts are underway to open some projects only for local companies operating in the country.
Speaking at the Parliamentary Committee on State Owned Enterprises, Minister Ameer said the administration is working towards allowing some projects conducted under Public Sector Investment Programme (PSIP) only to local companies. He said projects deemed to be appropriate for local companies would only be awarded to local companies.
Ministry of Finance is working to bring necessary changes to the tendering process to accommodate the move. The USD 2.4 billion State Budget proposed for 2020 has allocated USD 654 million to projects conducted under PSIP, and the ministry intends to award some of such projects to only local companies.
Speaking at the committee, the finance minister highlighted the said changes to the tendering process will further strengthen local businesses. The administration aims to make changes that benefit local companies, rather than awarding projects for foreign companies, according to the ministry. The proposed changes will see a different tendering processes for local projects, joint ventures and international projects.
While the government is working towards allowing local companies to bid for PSIP projects, the proposed budget for 2020 has so far seen the biggest allocation for PSIP projects.