Selection of TA for PPP and Delegation of Financial Power
Published in Finance. Tags: PPP.
Government of West Bengal
No. 8384-F(Y) Dated: 22.11.2013
A Panel of Transaction Advisors (TA) for PPP projects selected through open competitive bidding process was issued under the Finance Department vide Notification No. FS-116(PPP Cell)/2012 dt. 10.9.2012 with the objective of assisting the State Government departments and organisations in project planning and execution of PPP projects in terms of the PPP policy of the State Government contained in resolution no. 5266-F(H) dated 21.6.2012.
2. It has been observed that many departments approach Finance Department for approval of the TA where less than three bids are received. Besides, the departments are also approaching Finance Department for vetting the Scope of work/ Terms of Reference of the engagement of the TA. This is resulting in unnecessary delay in the engagement of the Transaction Advisor and also the subsequent stages of project planning and execution.
3. The issues involved have engaged the attention of the Government for some time past. Therefore, in order to remove delay in engagement of TA, the undersigned is directed by order of the Governor, to issue the following guideline and clarification for the selection of TA:-
(i) A minimum of two bids will be sufficient to select the TA out of the FD panel for PPP projects;
(ii) A Government Department may select Transaction Advisor through open tender process under para 6 of notification no. FS-116(PPP Cell)/2012 dt. 10.9. 2012 read with rule 47(8) of WBFR, Vol-I, since amended vide FD notification no. 5400-F(Y) dt. 25.6.12, if the Department is of the opinion that the panel is not suitable for the intended project;
(iii) The Scope of work/TOR of the TA need not be referred to the Finance Department for vetting/ concurrence;
(iv) The TA panel of FD may be utilised by the Government Departments to select TA for advisory service in (a) disinvestment related work, (b) exit from existing JV/PPP, and (c) projects which may not necessarily be PPP projects but involve complexity in terms of project preparation and execution. The concurrence of the Finance Department is also not required in such cases.
4. The undersigned is also directed by order of the Governor to delegate the Full financial power to Additional Chief Secretary/ Principal Secretary/ Secretary of the Administrative Department to incur expenditure for payment of professional service charge/ fee to the TA out of fund available under object head of “28-payment of professional & special services-02-other charges”‘ subordinate to the functional Major head of the Department concerned.
5. Necessary amendment will be made in West Bengal Financial Rules (WBFR) in due course.
Principal Secretary to the
Government of West Bengal
No. 8384-F dated 22.11.2013, Source