The World Bank says that the contract to purchase medical equipment was awarded to Philips, a company whose bid was 600,000 dollars higher than Nihon Kohden
Tirana Times
TIRANA, Sept. 1 – The World Bank has cancelled 1.1 million dollars of financing for the Albanian Health Ministry after identifying irregularities in a tender to purchase medical equipment for Albanian hospitals. Local media report that the World Bank has withdrawn from its financing after identifying that the contract to purchase the equipment was awarded to a company which submitted a bid 600,000 dollars higher than its rival. Daily Gazeta Shqiptare published on Thursday a letter in which Jane Armitage, the World Bank Country Director and Regional Coordinator for Southeast Europe, informs Albanian authorities including Finance Minister Ridvan Bode, Health Minister Petrit Vasili of the cancellation of funds because of irregular procedures in the tender.
The World Bank official says in her letter that the contract was awarded to Philips, a company whose bid was 600,000 dollars higher than Nihon Kohden. The World Bank says the bid evaluation committee at the Health Ministry violated World Bank rules by favouring the highest bidder and disqualifying the company which submitted the lowest bid.
Reacting on Thursday, Health Minister Petrit Vasili said the company the World Bank refers to had been disqualified from the tender after submitting fake documents.
“Unfortunately this company had made fake declarations in the tender which was also made known in writing to World Bank specialists and directors in Washington” said Vasili, adding that the ministry’s bid evaluation committee had awarded the contract to the lowest bidder.
Albania joined the World Bank in 1991. World Bank commitments to the country to date total approximately US$1.4 billion for 69 projects. Currently there are 14 operations under implementation totaling US$263 million in IDA credits and IBRD loans; US$180 million in co-financing loans, credits, and grants; and US$35 million of recipient-executed Trust Funds – amounting to a consolidated financial package of around US$480 million.
