| Work Detail |
Jun 10, 2018-Even as the government warns of stringent action against non-performing and under-performing contractors, little attention has been paid to possible collusion among the contractors to limit competition. A report of the Public Procurement Monitoring Office (PPMO), the government entity that monitors public contracts and procurements, has exposed collusion in a number of projects in a way to cost the national treasury dear. The report titled ‘A Collection of Reports on Public Procurement Monitoring and Complaints’ points to possible collusion among bidders while participating in and bagging contracts for road and bridge projects in the under-construction Dharan-Chatara-Gaighat-Katari-Sindhuli road and the Galchhi-Trishuli-Mailung, Syabru-besi-Rasuwagadhi road project. The report also hinted at collusion when the Department of Health Services invited tenders for services related to medical equipment. In case of the Dharan-Chatara-Gaighat-Katari-Sindhuli road, two packages were designed each for road works and bridges while works under the Galchhi-Trishuli-Mailung-Syabru-besi-Rasuwagadhi project were in a single package. Thus, there were a total of five packages in the three projects. The maintenance services were sought in three lots. Due to limited competition, the department approved the bid which quoted prices almost equivalent to the estimated cost for the first two lots. Its approved bid in the third lot was competitive due to the entry of a foreign firm, the report said. “Such a situation was created where many firms could only purchase tender documents,” the report said. Jayaram Lamichhane, chairman and managing director of the Swachhanda Nirman Sewa, which got the contract for one of the Dharan-Chatara-Gaighat-Katari-Sindhuli road packages, denied charges of collusion in the projects where his company participated. “If there are not big differences in quoted prices, it may just be a coincidence,” he said. He said that limited competition in big projects was natural because there were only a small number of Nepali contractors who qualify for such contracts |
