Public procurement reform in Nepal: From procedural control to governance reform

Public procurement sits at the heart of Nepal’s development system. It is the mechanism through which public resources are transformed into roads, schools, hospitals, irrigation systems, hydropower projects, and other public infrastructure. Yet it has also become one of the weakest areas of governance, characterised by chronic delays, cost overruns, abandoned projects, fragmented regulations, political interference, and persistent corruption risks.

The issue has returned to the center of national debate following recent government action against several construction companies accused of failing to complete projects and misusing public funds. While these actions reflect growing frustration over poor project delivery, they also expose a deeper reality: procurement failures are rarely caused by contractors alone. Delayed projects, escalating costs, and stalled infrastructure are often symptoms of broader weaknesses in planning, project preparation, oversight, and accountability.