Lumbini Development Fund's Contract Worth Rs 3.5 Billion In Dispute

June 13, Kathmandu- Bids worth Rs 3.5 billion published by the Lumbini Development Fund for various construction works under the Lumbini Master Plan have been dragged into controversy.

The controversy has arisen after the construction businessmen alleged that the fund had called for bids in collusion with some businessmen, including the provision that only they can agree. The fund had published bids for various construction works including road, sewerage and electricity under the Lumbini Master Plan. The bids prepared in the four packages are worth around Rs 3.5 billion excluding value added tax (VAT).

Other construction businessmen have alleged that there was collusion between some officials of the fund and some construction businessmen while preparing the bids and accordingly, the experience of only four businessmen was included in the provision. It has been alleged that the fund has not only sidelined dozens of entrepreneurs from competing in the alliance but has also shown intent to commit financial irregularities.

The Federation of Construction Entrepreneurs of Nepal, an umbrella organization of construction businessmen, has said that the provisions (criteria) in the contract have not been met. The federation has written to the fund to amend the provision. He has also informed the Commission for Investigation of Abuse of Authority and the Public Procurement Monitoring Office.