Biratnagar Waste Management Contract Dispute Escalates Amidst Allegations

Biratnagar. The tender process called for the long-term 20-year contract for waste management of Biratnagar Metropolitan City is currently mired in controversy. 

On one hand, the Metropolitan City has canceled the contract citing past poor performance and financial irregularities. On the other hand, the contracting company has accused the Metropolitan City of canceling the contract with prejudice against a company that reached the final stage of selection.

The management of daily waste of up to 100 tons in Biratnagar is a serious issue. Experts in the Metropolitan City say that if this dispute continues, waste management may become complicated in the future.

The Metropolitan City had invited bids for the collection, transportation, and disposal of Biratnagar's waste on a Public-Private Partnership (PPP) model on March 19, 2025 (Chaitra 6, 2082 BS). Only Nepsemac Sewa Pvt. Ltd., located in Lalitpur, submitted a proposal through e-bidding.

On May 27 (Jeth 13), Chief Administrative Officer of the Metropolitan City, Yogendra Prasad Dulal, handed over a letter to Nepsemac informing them that the bid has been rejected. The letter cited Section 26 of the Public Procurement Act 2063, citing the company's past conduct and financial irregularities as the main reasons. However, the preamble of the same act mentions that it should be open, transparent, and objective. Nepsemac has stated that the issue of financial irregularities is just an excuse. It argues that the contract was canceled directly without giving an opportunity to settle the financial irregularities, raising questions about the Metropolitan City's intentions.

Mayor of the Metropolitan City, Nagesh Koirala, stated that the contract was canceled after questions arose about the past role of Nepsemac Chairman Tikaram Dahal. The current Nepsemac and the 'West Management Group JV', which previously managed waste in Biratnagar, have the same chairman. The Metropolitan City claims that the group owes Biratnagar Metropolitan City Rs 1,215,450.

“Tikaram Dahal was the chairman of West Management at that time and is also the chairman of the current Nepsemac. Previously, he had also made disappear tractors and tricycles belonging to the Metropolitan City, which were later recovered only with the help of the police administration. We canceled the contract because it would be suicidal to entrust the city to such a person with a bad record for another 20 years,” a source from the Metropolitan City said.

Chief Administrative Officer of the Metropolitan City, Yogendra Prasad Dulal, however, cited technical problems with the software and lack of competition as reasons. He believes that due to the public holiday on the last day of bid submission and software issues, other potential companies could not participate.

“When only one company participates, there is no real competition,” Dulal said. “Therefore, re-inviting the tender seems legally and ethically correct.” The Metropolitan City has also given Nepsemac an ultimatum to deposit the outstanding amount within 7 days. Otherwise, it has warned of recovering the amount from the security deposit.

Meanwhile, Nepsemac Sewa Pvt. Ltd. has called the Metropolitan City's decision a “planned conspiracy.” Company Chairman Dahal stated that the Public Procurement Act does not allow cancellation for receiving only one bid and that the issue of financial irregularities is being unnecessarily amplified to tarnish the company's reputation.

The company's Information Officer Laxmi Prasad Ghimire claims that it is wrong to cancel the contract through an executive meeting when the High Court Biratnagar has already ordered not to halt the contract process. The company alleges that the Metropolitan City made such a decision under political pressure despite being financially and technically capable.

Local politics is also involved in this contract dispute. Individuals including Suraj Babu Shrestha had pressured not to sign a new agreement until the land acquisition process for the landfill site was completed. Within the Metropolitan City itself, there are two factions: one favoring bringing in a new company and the other favoring continuing with the old one.

Some have called the Metropolitan City's move an attempt to break a 'setting', while others see it as a game to pave the way for another 'close' company. However, the Metropolitan administration has clarified that the decision was made in accordance with the opinion of the legal advisor and the spirit of the Public Procurement Act.

Mayor of Biratnagar Metropolitan City, Nagesh Koirala, said that if anyone is dissatisfied, they can go to court, and they will implement what the court decides. “The executive has already made a decision. Going to the media or elsewhere will not achieve anything. We have canceled the contract due to financial irregularities and a poor track record in the Metropolitan City,” Koirala said. “If you are not satisfied, you can go to court.”

Nepsemac has stated that they will go to court. While Nepsemac is preparing to seek legal remedies, the Metropolitan City is preparing to invite new bids.

More than one hundred tons of waste are generated daily in Biratnagar. Currently, 42 to 43 vehicles are collecting and disposing of waste daily. 

“The challenge of waste management in Biratnagar is evident from the 100 tons of waste generated daily,” said a Metropolitan City employee. “If waste is not collected for even a single day, the city becomes malodorous. In such a serious matter, when awarding a 20-year contract, it is the Metropolitan City's responsibility to look at the company's past, its capacity, and its integrity. We do not want what is happening in Pokhara due to awarding the contract to the wrong company to happen in Biratnagar.”