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Public Procurement Act, 2063 Policy Brief

With the goal of making procurement activities of Public Entities in Nepal competitive, transparent and accountable to the public, the Government of Nepal enacted Public Procurement Act (PPA) on 14th January 2007. In the years following the enactment, PPA became the topic of discussion for various unpopular reasons, due to which the Act was amended on 14th July 2016. The newly amended act also incorporated provisions that facilitated and supported the new constitution of Nepal.

However, public procurement continues to face numerous problems, majorly due to the pitfalls that persist in its legal provisions. Finance Minister Dr. Yuva Raj Khatiwada pointed out the confusion in the construction modality, the involvement of multiple-stakeholders in monitoring and evaluation, low bidding, hurdles in land acquisition, and the shortage of skilled technical human resources as the major problems in the execution of public procurement in Nepal. Identifying the issues and coming up with practical solutions to these hindrances to smoothen the operation of Public Entities and consequently, the development activity of Nepal itself are the main goals of this policy brief.

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