First Business News Portal in English from Nepal
KATHMANDU: Government has completed the 11th amendment on Public Procurement Regulations. As per sources, in the Cabinet, a new amendment has been done stating that the construction companies cannot take more than 5 contract at once.
At present, we can see many examples of incomplete projects as the company has many pending projects to complete. Government has made a special provision where a company taking more than 5 contracts at once will be blacklisted. The Public Procurement Monitoring Office will keep the record of contracts.
Similarly, only Nepalese companies will be able to compete for the projects up to Rs 3 Billion. Foreign companies cannot even participate. At present, Nepalese companies only compete for the projects up to Rs 1 Billion. As per new provisions by the governments only Nepali companies will be able to complete for the projects up to Rs 4 Billion.
Likewise, as per regulations in order to take contract up to Rs 10 billion, the foreign companies must work on joint venture with Nepalese companies. With these new amendments government hopes that it will increase the technical capacity of Nepali contractors.
Similarly, from the pledge amount, the government will collect and keep the 5 percent of the bill amount i.e line of credit for the liquidity available for the contractors. Keeping the bank guarantee these amounts can be taken. This will brinh a liquidity of Rs 35 Billion in the market says construction contractors. Earlier, the government had brought a regulation which would restricy the extension of due of due date. But now this provision has been collapsed.
As per Nicoloas Pandey, senior vice president of Federation of Nepal Construction Business saying if there was provision of only taking 5 contracts at a time then the construction business and industry would produce a satisfactory result. ‘Such provision will help us to eradicate the bad aspects in the construction business’, he said,’ The worker would also get deserved respect while the image of the construction company will also be polished.’
Construction businessman Deepak Gautam stated,” Finally my 15 year long demand of making in taking contract has been fulfillef through this amendment.” He said,” This amendment will help in eradicating the nature of making piles of contracts and keeping it on hold. It will better if the companies finishes its work on time and then start new work which will also increase the development rate.”
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