BIA duty-free complex: Confusion over tender deadlines

International bids for operation of the two duty free shops at Bandaranaike International Airport have been called for -- but confusion and controversy have arisen over the deadline being twice changed.

The bids were called for by the Ministry of Civil Aviation, but to the confusion of prospective bidders, the Standing Cabinet Ap p o i n t e d Procurement Committee (SCAPC) tasked with evaluating the tender has twice changed the closing date for accepting bids.

The closing date to submit bids for “Operation of Core Category Duty Free Concession at the Arrival and Departure Restricted Areas of Terminal I, BIA,Katunayake, Sri Lanka” was initially published as June 23, 2016.

However, just nine days before this deadline, companies that had acquired the bid documents were notified that the SCAPC had decided to extend the bid closing date by a whole month, to July 25. This would, unusually, have given them two months to prepare their bids. But the very next day, Geeth Karunaratne, Head of Commercial and Properties of Airport & Aviation Services (Sri Lanka) Ltd, wrote back to the companies revising the closing date once again to July 7. The Sunday Times learns that this was after several prospective bidders raised alarm about the initial change which had led to fears that extra time was being granted “to allow for manipulation of the process”.

The duty-free facility at the airport was split between World Duty Free Group and Flemingo in mid-2011 for five years. Their contracts lapsed on June 1.

Bids were invited to award fresh contracts for the sale of liquor, perfumes, cosmetics/toiletries, and confectionery and tobacco products. The bid security was placed at US$ 900,000. A pre-bid briefing was subsequently held, followed by a visit to the locations.

Flemingo and World Duty Free are expected to bid again. The other prospective bidders are B&S Airport Retail, Ari-Anta International Duty Free, Duty Free Shopping (DFS) India (a part of Flemingo), Heinemann Duty Free and a Korean operator.

Previously, contracts were awarded as a franchise right with no tender procedure or competitive bidding. The new contracts will also be for five years. The shops will be located in both arrivals and departure areas.