Government Initiates Blacklisting Process for 15 Construction Companies and Suppliers
5th August 2026, Kathmandu
The Government of Nepal through the Public Procurement Monitoring Office has initiated formal legal proceedings to blacklist 15 construction companies and suppliers for failing to fulfill their contractual obligations, displaying poor project performance, and violating public procurement requirements.
Government Initiates Blacklisting Process
The central procurement monitoring body issued a public notice on Shrawan 20 directing the concerned firms to submit written clarifications and supporting evidence within seven days as a final opportunity before debarment decisions are officially executed.
Final Regulatory Opportunity Prior to Debarment Sanctions
According to official statements from the Public Procurement Monitoring Office, individual written notices seeking explanations had previously been delivered directly to the registered office addresses of the concerned entities with a mandatory thirty day response window.
However, because no formal responses or justifications were submitted by the companies during that initial thirty day timeline, the office proceeded with publishing a formal public notice to grant one final opportunity for written clarification before issuing binding blacklisting orders.
The ongoing legal proceedings are being conducted in accordance with Rule 141 subrule 4a of the Public Procurement Regulations 2007, which mandates that regulatory authorities provide affected parties a fair opportunity to present their written explanations before a final administrative decision is rendered.
Detailed List of 15 Companies and Joint Ventures Facing Potential Blacklisting
The construction firms, supply enterprises, and joint ventures facing potential debarment from government projects include:
- Nishman International Private Limited located in Udayapur District
- Jaya Nirman Sewa located in Kapilvastu District
- Himanshu Lokas Dev Joint Venture located in Kathmandu District
- Brothers Construction located in Mahottari District
- Shivam Construction located in Dhanusha District
- Surekha Nirman Sewa located in Dhanusha District
- Sai Baba Nirman Sewa located in Dhanusha District
- Siddhi Sai Prakash Construction Private Limited located in Kathmandu District
- Ambar Nirman Sewa located in Tehrathum District
- Lagansheel Nirman Sewa located in Humla District
- Maya Construction located in Dadeldhura District
- Srijana Construction located in Kavrepalanchok District
- Bamti Bhandar Private Limited Shree Narsingh Construction Joint Venture located in Mahottari District
- CIPEL Shailung Joint Venture located in Lalitpur District and India
- G B Metal Craft Industries and Suppliers located in Parsa District
Recommendations Submitted by Multiple Public Bodies and Local Governments
The formal recommendation to blacklist these fifteen contractors and suppliers was submitted by several government agencies, development project offices, and local government units across Nepal.
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The recommending public institutions include:
- Budhanilkantha Municipality
- Shivaraj Municipality
- Irrigation and Water Resources Management Projects operating in Dhanusha and Okhaldhunga Districts
- Sundarharaicha Municipality
- Tajakot Rural Municipality
- Bhageshwar Rural Municipality
- Various other public infrastructure agencies and municipal offices
Official submissions from these public entities cited widespread project execution delays, failure to mobilize required technical and physical resources, abandonment of ongoing public works, and persistent non-compliance with statutory public procurement obligations.
Restrictions on Future Government Procurement Contracts
If the cited firms fail to submit convincing and legally sound explanations within the designated seven day window, the Public Procurement Monitoring Office will finalize the administrative procedure and publish official blacklisting orders.
Once a blacklisting decision is finalized, the identified construction firms, suppliers, and joint ventures will be barred from participating in any bidding process, tender application, or contract award across all government agencies, public institutions, and local levels in Nepal for a specified duration ranging from one year to three years.
Administrative Accountability and Infrastructure Impact in Nepal
The strict regulatory measures undertaken by the central government highlight increasing administrative oversight aimed at ensuring accountability across public infrastructure projects in Nepal. Delayed development works, underperformance by contractors, and non-compliance with tender specifications have frequently stalled critical regional road, bridge, municipal, and irrigation projects.
By enforcing rigid adherence to the Public Procurement Act and associated regulations, public procurement authorities seek to deter negligent practices, protect state funds, and ensure that public infrastructure contracts are awarded strictly to capable and compliant construction partners.
Summary of Blacklisting Legal Process Facts
- Issuing Agency: Public Procurement Monitoring Office under the Office of the Prime Minister and Council of Ministers
- Target Entities: 15 construction companies, suppliers, and joint ventures
- Governing Legal Framework: Rule 141 subrule 4a of Public Procurement Regulations 2007
- Final Notice Duration: 7 days from the date of public publication
- Primary Reasons for Action: Contractual default, project delays, non-responsiveness to previous notices, and non-compliance with procurement terms
- Potential Sanction: Complete prohibition from participating in all public procurement and government tenders across Nepal for a period ranging from one to three years
