The government has responded to reports surrounding the Rs. 50.7 million allocation for the procurement of Power Distribution Units (PDUs) under the Electronic National Identity Card (e-NIC) project.
In a statement, Acting Secretary to the Ministry of Digital Economy Waruna Sri Dhanapala said recent media coverage on the procurement has been misleading.
According to the ministry, the procurement of 700 PDUs followed the guidelines of the National Procurement Commission and was based on specifications prepared by technical experts from the University of Moratuwa and the Information and Communication Technology Agency (ICTA).
The Department for Registration of Persons initiated the bidding process on April 29, 2025, under reference number DRP/e-NIC/PRO/2025/06. Eleven companies collected bid documents, and eight submitted proposals under the National Competitive Bidding (NCB) framework.
The evaluation, conducted in line with national procurement guidelines, included a preliminary review, a detailed technical assessment, and a post-qualification evaluation. The bid deemed the lowest substantially responsive—meeting all technical criteria—was selected. The cost for 700 units was approximately Rs. 50 million, excluding VAT, the statement said.
Officials noted that three companies submitted higher bids, placing the selected supplier fifth in terms of bid value. Roughly one-third of the total cost was attributed to transportation of the units to district offices.
Before a final decision, the procurement committee reviewed two appeals under section 8.5 of the guidelines. Both were dismissed, and a recommendation was sent to the Ministry of Digital Economy for approval. As of now, a final decision has not been announced, the Ministry stated.
The government maintains that the procurement process was transparent and compliant. However, criticism has emerged after claims surfaced that the actual production cost could be as low as Rs. 7.7 million.
Critics allege that Browns Engineering Pvt Ltd, received favourable treatment in the tender process, and that units could be assembled by technical officers at the district level for a lower cost of Rs. 11,000 each. (Newswire)
