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Supreme Court’s order sets strict standards for joint ventures

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Kathmandu. The Public Procurement Monitoring Office (PPMO) under the Office of the Prime Minister and Council of Ministers (PPMO) has made significant changes in the tender evaluation process for construction works as per the Supreme Court order.

The Office has issued a new directive to all public bodies after the Constitutional Bench of the Supreme Court issued an interim order not to implement Rule 31 (i) of the Public Procurement Regulations, 2064 on 23rd of 2083. It is stated in the document that the Public Procurement Monitoring Office received information about the order on 28.01.2008.

According to the new provision, the eligibility criteria for joint ventures for construction works above Rs 100 million have been changed. From now on, for general operations above $100 million, one partner of the JV must have successfully completed at least one similar work within the last 10 years.

Similarly, in case of complex works, each partner should have completed at least one contract agreement and one partner should have specialized experience. This notice was issued on 2083/01/2083 certified by the Section Officer Acting Officer of the Public Procurement Monitoring Office. These standards will remain in force until the final decision of the court and all public bodies have been instructed to follow this when preparing tender documents.

This change is expected to have a direct impact on the qualification determination process of contractors involved in large infrastructure projects.

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