275 Construction and Supply Companies Blacklisted by End of Ashad 17

Kathmandu. As of Ashad 17 of the current fiscal year, 275 construction and supply companies have been blacklisted.

According to data from the Public Procurement Monitoring Office, bidders, consultants, service providers, suppliers, and construction companies have been blacklisted from Saun 2082 to Ashad 17, 2083.

According to Ram Prasad Acharya, spokesperson for the Procurement Monitoring Office, out of the total companies blacklisted so far in the current fiscal year, 10 companies have been removed from the blacklist.

Similarly, 32 companies have been suspended, the office stated. Among the 275 blacklisted, 228 are single companies, while 47 are joint ventures and 36 are under judicial review, he said.

These companies have been blacklisted for a specified period based on recommendations from various government agencies in accordance with Section 63 (1) of the Public Procurement Act, 2063.

Major Companies and Time of Blacklisting
On Jestha 13, 2083, 11 companies including Friends Construction (Kathmandu), Rhythm Construction (Kailali), Panch/Tara Laxmi J.V. were blacklisted for 1 to 3 years. Similarly, on Baishakh 29, 4 companies including Indian company 'Patel Engineering Limited' were penalized.

In Magh and फागुन of 2082, 7 companies including Kanchha Ram Construction Company, Capital Enterprises, Shree Shreeom Auto Lube were blacklisted. Similarly, on Magh 12, 6 companies including Selcom Technology and Vidya Construction were penalized.

In Ashoj and Kartik of 2082, 10 companies including Purnagiri Nirman Sewa, Durga Nirman Sewa, and Manakamana Construction were blacklisted for 1 year.

In Bhadra of 2082, 10 companies including Vishal Home Nirman Sewa, Jaleshwori Mahadev Yasvi Construction, and Sagun Fabrics were blacklisted.

Similarly, in Chaitra of 2082, 8 companies including Lok Nirman Sewa, Silk Market Pvt. Ltd., Brothers Construction, and Dhulikhel Nirman Sewa, based on the recommendation of Bagmati Municipality, were banned for 1 to 3 years.

Why Blacklisted?
According to the Public Procurement Monitoring Office, these companies have been blacklisted mainly due to abandoning projects.

They have been blacklisted for not starting work within the time limit as per the contract agreement or abandoning the work midway.

The office stated that companies have been blacklisted as a punitive measure for not using construction materials as per the criteria mentioned in the agreement or for substandard work, for not complying with the terms of the procurement agreement with public entities, and for failing to complete the work even after repeated extensions.

Companies blacklisted will not be allowed to participate in the procurement process or tender of any public entity across Nepal for the specified period (1 year to 3 years).

The Procurement Office has taken this action based on recommendations from the Department of Roads, various municipalities and rural municipalities, the Nepali Army, and other government offices.

The provision to blacklist companies that do not fulfill the conditions of the public procurement process, based on the recommendation of public entities, is stipulated in Section 63 of the Public Procurement Act 2063 and Rule 141 of the Public Procurement Regulations.

As per that provision, bidders, proposal givers, tender givers, consultants, service providers, suppliers, construction businesses, institutions or companies, and their authorized individuals can be blacklisted for 1 to 3 years based on the severity of their actions.

After being blacklisted, participation in new procurement processes is prohibited for a specified period.