25th August 2025, Kathmandu
The Government of Nepal, through the Public Procurement Monitoring Office (PPMO), has blacklisted 11 companies due to unsatisfactory performance on public contracts.
Government Blacklists 11 Companies
The Government of Nepal, through the Public Procurement Monitoring Office (PPMO), has blacklisted 11 companies due to unsatisfactory performance on public contracts. This action, announced via a public notice, is a strong step toward enforcing accountability and quality in Nepal’s public procurement system.
Blacklisted Companies and Penalties
The blacklisting applies to both the companies and their key personnel, who are now barred from participating in any public procurement process for a specified duration. The penalties vary based on the severity of the performance failures:
Two Years: Kasyap Construction Service & Suppliers of Kathmandu, led by Madhav Ghimire.
One and a Half Years: Mashta Bhawani Construction Service of Dolpa, led by Karna Bahadur Budha.
One Year: The remaining nine companies, along with their key persons, have been blacklisted for a period of one year. These firms include:
- Bishal Home Construction Service, Udaypur (led by Home Bahadur Basnet)
- Jaleshwari Mahadev Yasvi Construction, Budhanilkantha, Kathmandu (led by Sundar Shrestha)
- Sagun Fabrics Pvt. Ltd., Morang (led by Mayank Shah)
- Shubha R.S. Builders Suppliers, Banke (led by Ram Bahadur Budha)
- Nabin Construction Service, Achham (led by Chhatra Bahadur Budha)
- J.M.C. Construction Pvt. Ltd., Surkhet (led by Mithun Chand)
- Galaxy Construction & Suppliers Pvt. Ltd., Kathmandu (led by Krishna Kumar Rai)
- Jalpa Construction Service & Suppliers, Kathmandu (led by Sitaram Shrestha)
- Shahid Construction Service, Arghakhanchi (led by Sahidin Miya)
Reasons for Blacklisting and Restrictions
The blacklisting was a consequence of these companies’ repeated failures to deliver satisfactory work on projects related to construction, supply, and other services. The primary reasons for the blacklisting included significant work delays, non-compliance with quality standards, and the failure to complete projects as per contractual agreements.
During the blacklisting period, these firms are prohibited from bidding on or securing contracts with any government agencies, state-owned enterprises, or public sector bodies. This restriction is intended to ensure that only capable and reliable companies are entrusted with public projects, thereby protecting taxpayer money and improving the overall quality of public service delivery.
Impact on Nepal’s Public Procurement System
This action by the government is expected to have several important implications for Nepal’s public procurement system. By penalizing non-performing firms, the government sends a clear message that substandard work and a breach of public trust will not be tolerated. This move is designed to:
Improve Accountability: It encourages companies to be more diligent and committed to delivering quality work on time.
Strengthen Transparency: It adds credibility to the public procurement process, showing that the system holds contractors accountable.
Enhance Market Discipline: The action encourages competent and ethical firms while discouraging those who might try to exploit public resources.
Build Public Confidence: It assures taxpayers and stakeholders that the government is actively working to safeguard national interests and ensure value for public funds.
This move is a strong step toward building a more reliable and trustworthy procurement system, ultimately ensuring the timely delivery of projects that benefit the people of Nepal.
For More: Government Blacklists 11 Companies