Government Amends Public Procurement Act After 20 Years Via Ordinance
Summary
The Government of Nepal has amended the Public Procurement Act via ordinance after 20 years to streamline the procurement process, mandate pre-procurement preparations, promote domestic production, and introduce new competitive methods like reverse auction and EPC model for construction projects.
Key Points
- The government issued a 'Public Procurement (Second Amendment) Ordinance, 2083' to reform Nepal's public procurement system after 20 years.
- The ordinance mandates pre-procurement preparations including budget allocation and site clearance before tender calls to prevent project delays.
- New methods such as 'Reverse Auction' and 'Engineering Procurement & Construction (EPC)' models have been introduced to enhance competition and efficiency.
- Construction entrepreneurs have expressed dissatisfaction over strict penalties and lack of price adjustment provisions amid rising material costs.
