The Ministry of Digital Economy has issued a clarification regarding misleading media reports on the procurement of power distribution units (PDUs) for computers and equipment systems at Divisional Secretariats under the Electronic National Identity Card (e-NIC) Project.

Issuing a statement, the Ministry noted that the procurement of PDUs was undertaken with the objective of ensuring the safe and sustainable distribution of electricity to computers and equipment units previously distributed to Divisional Secretariats across the country.

These units are essential for the timely implementation of personal registration and biometric data collection as part of the e-NIC initiative. Various cost-effective options were also considered during this procurement, the statement added.

It further noted that the bidding documents for this procurement were prepared based on recommendations from a Technical Evaluation Committee comprising experts in electrical power systems and IT networking, representing the University of Moratuwa and the Information and Communication Technology Agency of Sri Lanka (ICTA). Technical specifications were developed accordingly to meet the required standards. Based on these specifications, the procurement of 700 equipment units was initiated by the Project Procurement Committee, under the guidelines of the National Procurement Commission, the Ministry stated. 

The Ministry of Digital Economy said considering the high-value and sensitive nature of the equipment used in the e-NIC process—such as devices used to collect biometric data—as well as the safety of both government officers and service recipients, the Committee opted for industrial-grade PDUs instead of domestic-grade units. 

Accordingly, bids were invited from experienced vendors on April 29, 2025 under the tender number DRP/e-NIC/PRO/2025/06, by publishing newspaper notices in all three languages. 

The statement from the Ministry said, “This was purely an open and transparent National Competitive Bidding (NCB) process, and was not targeted at any specific company. Of the 11 companies that obtained the tender documents, eight submitted sealed bids. The proposed pricing of the bidders indicated a wide variance, which was publicly disclosed in a manner accessible to all participants.

“The evaluation of the eight bids was carried out in three stages, in line with Procurement Guideline 7.1:

1. Preliminary Examination of Bids to verify minimum qualifications

2. Detailed Technical Evaluation

3. Post-Qualification Evaluation

“According to Clause 7.1 of the Government Procurement Guidelines, the selection of the bidder should not be based solely on the lowest price, but rather on the “Substantially Responsive Lowest Bid.” Some bidders who offered lower prices failed to meet preliminary or technical requirements and were therefore disqualified from further evaluation.

“Among the technically qualified bids, the selected vendor proposed a price of approximately Rs. 50 million (excluding VAT) for 700 units, meeting all required technical specifications. This was not the lowest bid, but it was the lowest among those that met all technical and procedural requirements. In fact, the selected bid was the fifth lowest among the eight, with three other bids offering even higher prices. It should also be noted that transportation costs for these units—each potentially weighing up to 3 kg—to all Divisional Secretariats across the country are included in the quoted price.

“Before the final award, under Clause 8.5 of the Procurement Guidelines, any appeals submitted by disqualified parties had to be reviewed. Two such appeals were received, and the relevant Appeals Committee concluded that it could not agree with the claims. Its final recommendation was therefore forwarded to the Ministry of Digital Economy to make a final decision. As of now, no final decision has been made by the Ministry, and the selection process remains under review.”

The Ministry also emphasized that the current status of this procurement is only the identification of the substantially responsive lowest bid among the qualified proposals. 

The Digital Economy Ministry said therefore, it rejects the claims circulating in some media alleging that the government procured unusually high-priced electrical units or that favoritism was shown toward a particular company.

It further reaffirmed that all remaining procurement related to the Electronic National Identity Card project will continue to be handled under the supervision of the Ministry of Digital Economy, with high transparency, adherence to standards, and cost-effectiveness, as has been the practice thus far.