In a move that takes the government’s domestic aviation plans back to square one, the government will re-tender the domestic air services contract at the end of the week, according to the communications ministry.
“We’ll reopen the tender,” said communications secretary, Dasho Kinley Dorji. The move to re-tender the domestic contract means that negotiations between the government and the selected company have failed. Government officials did not reveal which company had been selected.
On reasons behind the re-tendering, Dasho Kinley Dorji said that the required criteria had not been fulfilled by the selected company.
Civil aviation director general, Phala Dorji, said that the proposal offered was not substantial. “We have to explore more viable proposals,” he said.
According to a ministry official, the selected company had demanded a ten-year monopoly on the domestic air services sector. The official said the cabinet was willing to grant it only a five-year monopoly, and that this issue had remained unresolved.
The selected company was also demanding that the government subsidise its domestic operations. “The government isn’t in a position to provide subsidies,” said aviation director general, Phala Dorji. “We’re looking for companies that will come forward without any subsidy requirement.” He did not provide the amount demanded by the company.
Earlier reports also pointed out that the selected company was negotiating for international connectivity as well.
Dasho Kinley Dorji said the government is currently working out details of the new tender or RFP (request for proposals). The government will most likely announce the new RFP on Friday.
In a significant new development, the new RFP may include the option of international operations for the proposing company, Kuensel has learned. Aviation director, Phala Dorji confirmed that such an option may be included. He added that more companies are expected to participate, if such an option is made available.
The tender will remain open until August 10 after its announcement on Friday.
On whether the government will still meet its October 1 deadline to launch domestic air services, Dasho Kinley Dorji said, “We hope to begin this year.”
He added that October 1 was actually an “anticipated deadline”, and that a deadline could only be formed, once the contract is awarded.
The first RFP was floated on January 18. Four companies: national airline, Drukair, and tour company, Rainbow tours and treks, along with two international companies, Route Network LLP, based in London, UK, and Niche (BBI), Singapore, submitted proposals by a February 12 deadline. Three still remained in contention, after a second round of evaluation. On May 7, an inter-ministerial committee submitted its selection to the cabinet for approval. The cabinet has remained in negotiations with the company until the current development.
Courtesy: Kuensel
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