MP Mohan Acharya Highlights Procurement Law Weaknesses Hindering Infrastructure Development

Kathmandu. Nepali Congress lawmaker Mohan Acharya has stated that weaknesses in the existing Public Procurement Act and Regulations are hindering the country's infrastructure development and economic goals.

Participating in the discussion on the Appropriation Bill 2083 in the House of Representatives meeting on Tuesday, he expressed his views on various issues related to the Ministry of Physical Infrastructure and Transport. Lawmaker Acharya emphasized the need for extensive reforms in public procurement regulations to achieve the government's projected economic growth target of 7 percent for the upcoming fiscal year.

He mentioned that although the second amendment to the Public Procurement Act has brought some ease in budget reallocation and variation orders (VO), much work remains to be done. He argued that the main reason for delays in projects like the Narayanghat-Butwal and Kanchanpur-Kamala roads, while international construction companies complete their work on time in their own countries, is legal complexity. Pointing out the problem of price adjustment in infrastructure construction, Lawmaker Acharya drew the government's attention to the fact that Nepal's construction industry is currently in a very difficult situation.

He said, 'If we proceed by holding onto the current public procurement regulations, the government's economic growth target of 7 percent cannot be achieved; those will remain just our dreams. More than 60 percent of petroleum products are consumed in road construction, but the index factor for price adjustment in the standard bidding document is kept at only 10 to 15 percent. This has devastated the construction sector.'

Discussing technology and quality in the construction sector, he stated that the lack of standard designs for bridges in Nepal and the use of different sized girders also cause delays. Furthermore, he claimed that projects have been left in limbo due to the design and build model initiated around 2013-14 and the practice of awarding contracts to the lowest bidder.

Lawmaker Acharya suggested using environmentally friendly materials in infrastructure development and adopting hybrid annuity and public-private partnership (PPP) models on highways with high traffic volume. He expressed confidence that this would reduce the pressure on the economy and accelerate development work.