This study examined the effect of open tender procurement practices on donor fund absorption in infrastructure development projects in Uganda, using evidence from the Ministry of Works and Transport (MoWT). The study was motivated by persistent inefficiencies in donor-funded infrastructure projects characterized by low fund absorption, procurement delays, and implementation inefficiencies despite ongoing public procurement reforms. Guided by principal–agent theory and institutional theory, the study conceptualized open tender procurement practices in terms of procurement planning, bid evaluation, contract award procedures, and contract management, and assessed their influence on donor fund absorption measured through timely fund utilization, disbursement efficiency, and project completion within budget and schedule. A cross-sectional survey design was adopted, targeting 117 valid respondents drawn from procurement officers, engineers, accountants, and project managers at MoWT. Data were collected using structured questionnaires and analyzed using descriptive statistics, Pearson correlation, and multiple regression analysis. Findings revealed a generally strong positive perception of open tender procurement practices with an overall mean of 3.93. Correlation results indicated significant positive relationships between procurement planning (r = 0.684), bid evaluation (r = 0.641), contract award (r = 0.659), and contract management (r = 0.713) with donor fund absorption (p < 0.01). Regression analysis further confirmed that open tender procurement practices explain 46.8% of the variation in donor fund absorption (R² = 0.468, F = 192.526, p < 0.001), with contract management emerging as the strongest predictor. The study concludes that effective implementation of open tender procurement practices significantly enhances donor fund absorption in infrastructure development projects. It recommends strengthening procurement planning systems, improving efficiency in bid evaluation processes, streamlining contract award procedures, and reinforcing contract management systems to optimize donor fund utilization in Uganda’s infrastructure sector.
Open tender procurement, donor fund absorption, infrastructure development, procurement planning, bid evaluation, contract management, Ministry of Works and Transport, Uganda.
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