Government tightens procurement law with penalties, faster bidding and pricing reforms
Summary
Nepal has amended the Public Procurement Act 2007 to introduce criminal liabilities for misuse of advance payments, shorten bidding timelines, implement price adjustment provisions, and improve contract awarding and project delivery processes.
Key Points
- Nepal's amended Public Procurement Act 2007 introduces criminal liability for contractors misusing advance payments or diverting funds.
- The law replaces lowest-price contract awards with an average bid evaluation system to encourage fair competition and quality.
- Tender submission deadlines have been shortened for national and international tenders to speed up procurement processes.
- New provisions include decentralizing approval authority for contract variations, price adjustments during extraordinary circumstances, and incentives for early project completion.
