Six construction companies have been blacklisted by the Public Procurement Monitoring Office (PPMO), Nepal’s public procurement watchdog under the Office of the Prime Minister and Council of Ministers, for failing to complete road projects on the Karnali Highway and Nagma-Gamgadi road. The companies are now barred from participating in any public procurement process for specified periods.
The blacklisting follows recommendations from the Road Division Office, Jumla, an office under the Department of Roads, Government of Nepal. The companies failed to adhere to contract agreements for the fiscal years 2075 to 2080 BS, according to Shrawan Kumar Mahatara, Chief of the Road Division Office, Jumla. The action was taken under Section 63, Sub-section (1) of the Public Procurement Act, 2063, which aims to ensure open, transparent, objective, and reliable procurement processes, promoting competition, fairness, integrity, accountability, and trustworthiness.
Details of Blacklisted Firms
- Vinamra Nirman Sewa Surkhet: three years
- Dhruva Nirman Sewa Birendranagar Surkhet: two years
- Avinash Nirman Sewa Chhayanath Mugu: one year
- Shankarmali Nirman Sewa Kathmandu: three years
- Man Shahi Nirman Sewa Kalikot: three years
- Kashyap Nirman Sewa Kathmandu: two years
Public notices regarding the blacklisting were issued in two phases. The notice for Vinamra, Dhruva, and Avinash Nirman Sewa was released on Saturday, Ashoj 16 (BS). Earlier, the blacklisting of Shankarmali, Man Shahi, and Kashyap Nirman Sewa was announced on Wednesday, Ashoj 13 (BS). (You can read our previous coverage on this matter here: Jumla Road Division blacklists contractors)
According to Birendra Rawal, a sub-engineer at the Road Division Office, Shankarmali Nirman Sewa failed to complete work on the Nagma-Gamgadi road, while Kashyap Nirman Sewa did not fulfil its contract for the Jumla Manang-Mustang connecting road. The remaining companies were blacklisted for not completing road upgrade and construction contracts in the Kalikot section of the Karnali Highway within the stipulated time.
Impact and Next Steps
Companies placed on the blacklist are prohibited from participating in any public procurement activities for the duration specified.
New procurement processes are expected to be initiated to complete the remaining work on these vital road projects. However, details regarding the timeline for these new tenders and the potential contractors are not yet available. It also remains unclear whether the blacklisted companies have sought any legal recourse against the decision, or the detailed extent of delays and financial losses incurred by the state due to their non-compliance.
