KATHMANDU: Government has made some crucial amendments in the Public Procurement Regulations and provisioned it mandatory to undertake joint ventures with Nepali company if a foreign company wants to participate in the international bidding for construction projects estimated to cost up to Rs 10 billion.
The 11th amendment of the Public Procurement Regulations has made such provision. The government has published the rules amended on February 7 in the gazette on Thursday.
As per the amended regulations, the cost estimate of up to Rs 50 million has to be approved by the approved Gazetted Third Class Officer.
Similarly, cost estimates of up to Rs. 100 million have to be approved by the Gazetted Second Class Officer, and the cost estimates of up to Rs. 200 million have to be approved by the Gazetted First Class Officer. However, the department head’s approval is mandatory for the cost estimates of more than Rs. 200 million.
As per the new provision, a construction company is allowed to take only 5 contracts at a time. It can not take another contract without completing the previously signed contracts.
Earlier, the construction companies often failed to complete the task in the promised period under various pretexts and urged the government to add the cost as per the ‘changed scenario’. The state had to pay for the slackness of the companies. The project was delayed when the same company won the construction contract for several projects.
The revised rules stipulate that construction entrepreneur who participates in international level bids in a maximum of 25 percent partnership can also participate in the bidding process of more than 5 international level bids.
Now onwards, no foreign companies will be included in the contract up to Rs 3 billion. This will ensure that only domestic companies will compete in such small scale constructions.
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