Kathmandu-The government led by Balendra Shah has amended the Public Procurement Act, 2007 through an ordinance after nearly two decades. The changes target delays, cost overruns, and weak accountability in public projects.

Here is what changes for you and why it matters.

Stricter rules for contractors
Contractors who abandon projects will face stronger penalties.If a project stops midway, the full performance guarantee will be seized.The government can recover any extra cost needed to complete the work from the same contractor.

This aims to reduce unfinished roads, bridges, and buildings.

New Procurement Service Office
A central Procurement Service Office will be set up under the Prime Minister’s Office.It will help government agencies choose suppliers and manage purchases.This could reduce confusion and improve coordination across agencies.

Faster decision-making on project changes
Project changes, called variations, are now easier to approve. Officials at lower levels can approve small changes.This cuts delays when projects need quick adjustments on the ground.

Before, even small changes required higher-level approval.

Shift to digital bidding
Government agencies no longer need to publish tender notices in newspapers if they use the electronic procurement system.All bids can be invited online.This reduces costs and speeds up the process.

It also pushes more transparency if implemented well.

Why this matters
Nepal has long struggled with delayed public projects and rising costs.These changes try to fix three core problems.Weak accountability. Slow decisions. Outdated processes.

The impact will depend on enforcement. If rules are applied strictly, you could see faster project completion and fewer abandoned contracts.