Passport dispute triggers diplomatic alarm as Nepal risks arbitration and foreign investor fallout
Summary
Nepal's multi-billion rupee electronic passport project faces crisis as allegations of procurement non-compliance risk international arbitration, diplomatic tension with Germany, and damage to foreign investment confidence.
Key Points
- Nepal's electronic passport project worth Rs 8.5 billion is embroiled in a dispute over alleged technical non-compliance by German contractors Veridos and Mühlbauer.
- Germany's Federal Foreign Office has been formally briefed, escalating the issue to a high-level diplomatic concern.
- The project is near full operational deployment with 550,000 passports already supplied and system integration completed.
- Potential contract suspension or alteration risks international arbitration, costly compensation claims, and long-term damage to Nepal's reputation with foreign investors.
