Nepal Introduces Measures to Curb ‘Low Bidding’ in Public Procurement

Nepal’s construction industry has welcomed the introduction of measures to curb ‘low bidding’ in public procurement, a practice that has long plagued the sector.

Nicolas Pandey, president of the Nepal Builders’ Association, hailed the second amendment to the Public Procurement Act as a positive step towards reforming the public procurement system.

Speaking at an event organized by the association in Lalitpur, Pandey noted that the tendency to bid at extremely low prices had affected development projects and expressed confidence that the new provisions would increase the government’s spending capacity and bring order to the construction sector.

Pandey pointed out that the amendment addressed several issues that contractors had been facing for years, thanks to the Public Procurement Act and regulations.

Impact on the Economy

The association had been advocating for these changes for a long time, and Pandey believed that they would have a positive impact on contractors, project implementation, and the overall economy.

‘Low bidding’ had prevented the government from effectively utilizing its development budget, but with the introduction of average bidding and rated criteria for complex projects, the government’s spending capacity would increase, and project implementation would become more effective, according to Pandey.

The amended act would also help resolve procedural complexities such as tree felling, environmental impact assessments, and the relocation of electric poles, he added.

This, in turn, would reduce project delays and decrease the government’s financial liabilities, Pandey said.

Modernizing the Construction Sector

Pandey emphasized the need to modernize the construction sector, adopt new technologies, conduct research, and explore alternative financial sources to drive it forward.

To accelerate infrastructure development, he stressed the need for increased cooperation between the government and the private sector.