A “Dialogue on Possible Alternatives on Public Procurement Laws in Nepal” was organized by Niti Foundation on the 13th of September, 2024. The Health Minister of Nepal, parliamentarians and experts participated in discussing issues regarding public procurement in Nepal, including value for money and integrity in using public funds; transparency and impartiality in procurement procedures and decision; assurance of competition in the public tax usage; and accountability of concerned departments and officials in public procurement.
Major discussion points revolved around how public procurement procedures are vulnerable to corruption, the issue of non-performance brought upon by complexity of laws concerning public procurement and the need for the relevant laws to be more general and concise in order to avoid complications in implementation that may take form of perpetration. Key themes and concerns included:
- -Accountability gaps: Responsibility should extend beyond contractors to consultants, DPR approvers, supervisors, and payment authorities.
- -Low bidding & project delays: Calls for thresholds, better oversight, and incentives/penalties to ensure timely, quality delivery.
- -Overlapping laws and amendments: Frequent, politically driven changes and reliance on regulations rather than acts create loopholes and corruption opportunities.
- -Decentralization vs. capacity: While regional-specific laws are needed, questions remain about local governments’ ability to draft and implement them effectively.
- -Public-Private Partnerships (PPPs): Encouraged as a way to improve procurement but requiring clearer legal frameworks.
- -Site clearance & DPR flaws: Contractors often blamed unfairly for problems rooted in poor planning, discrepancies, and government inefficiency.
- -Gender and inclusion: Women face fewer opportunities; capacity building and fair access were highlighted.
- -Sectoral examples: Construction, health procurement, and infrastructure all face inefficiencies due to mismanagement, weak enforcement, and corruption.
Recommendations raised:
- -Draft a new, concise procurement law aligned with federalism, avoiding unnecessary overlaps.
- -Strengthen PPMO and PPRC but allow sectoral bodies some flexibility in technical procurement rules.
- -Clearly define accountability, responsibility, and duty within the law.
- -Incentivise good contractors with bonuses and penalize negligent ones.
- -Improve transparency in amendments, procurement processes, and donor-related exemptions.
- -Ensure regional equity in development and prevent excessive political interference.
- -Foster capacity building for local governments and procurement staff.
This initiative for discussion on the intricacies of public procurement and related laws in Nepal was acclaimed by the participants stating that commencing this dialogue is imperative. The session concluded by highlighting that Nepal’s current procurement framework is outdated, fragmented, and vulnerable to corruption. Comprehensive reforms—rooted in accountability, clarity, transparency, and inclusiveness—are urgently needed to align procurement with federal governance, ensure value for money, and improve public trust.
