Kathmandu, February 8
The government has barred foreign companies from competing for construction contracts that are worth less than Rs 3 billion.
A cabinet meeting held on Monday amended the Public Procurement Regulations, according to which the existing Rs 1-billion threshold set for foreign companies has gone up threefold.
The government decision will benefit Nepali construction companies, it has been hoped.
Besides, foreign companies getting contracts worth up to Rs 10 billion have to establish a joint venture with a Nepali company, which will hopefully help Nepali companies improve their technical competence.
Meanwhile, the 11th amendment to the regulation says one construction company cannot get more than five contracts at once. According to the provision, the companies flouting this rule will be blacklisted.
The Public Procurement Monitoring Office will monitor the implementation of the rule.
Nicholas Pandey, the senior vice-president of the Federation of the Contractors’ Associations of Nepal, says the amendments will help the Nepal construction industry grow.