Over the past four years, the municipality of Tórshavn has completed projects worth nearly 400 million DKK without any public tendering process. Furthermore, countless other projects have been tendered with unnecessarily strict criteria that only two companies could realistically meet, even though other companies could certainly have submitted suitable and competitive bids if given the chance.
This approach is neither a sensible business policy nor a sound financial policy. To maintain a diverse business environment and make the most of our taxpayers’ money, the municipality of Tórshavn needs to reconsider its tendering policies to ensure that more companies are allowed to compete, which, in turn, lowers project costs and prevents favouritism towards specific companies.
The justification often given for limiting tenders to a few companies is that this speeds up the project timeline. This claim is highly questionable, and the timeliness of project completions is not necessarily that big of a problem to begin with.
The municipality’s debt has skyrocketed in this term because every single small and large project has been activated simultaneously. At the same time, all sensible and fundamental environmental considerations, along with active citizen involvement, have been disregarded. Slowing down the pace would undoubtedly lead to greater overall gains in the long run.
Sound financial policy is essential for a robust and well-functioning municipality. The municipality of Tórshavn’s business sector is diverse, and we need to ensure solid structural support for businesses of all sizes to work and thrive. Ensuring they have equal opportunities to participate and submit bids for projects is a fundamental step towards greater transparency, better competition, and improved outcomes.
The upcoming years will see a wide variety of municipal tenders. We need improved sewage systems, expanded bike paths, maintenance and upkeep of infrastructure, and more. These municipal investments also boost the labour market, and if we manage the tenders correctly, we’ll secure the most cost-efficient solutions for our industries and citizens.
Elsa Berg,
City Council Member and Candidate for Tjóðveldi in the Tórshavn Municipal Elections
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