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Efficiency in public procurement in Rural Road Projects of Nepal, Volume 1
Author:Benamghar, Radia; Iimi, Atsushi; Country:Nepal;
Date Stored:2011/07/26Document Date:2011/07/01
Document Type:Policy Research Working PaperSubTopics:Government Procurement; Debt Markets; Transport Economics Policy & Planning; Post Conflict Reconstruction; Investment and Investment Climate
Language:EnglishRegion:South Asia
Report Number:WPS5736Collection Title:Policy Research working paper ; no. WPS 5736
Volume No:1  

Summary: Transport infrastructure is important for economic growth. In Nepal, about 20 percent of rural residents have to spend more than 3 hours to go to the nearest marketplace or agriculture center. Public procurement is an important policy instrument to use resources wisely and efficiently. This paper analyzes a series of policy questions, from procurement design to contract management and project quality assurance. The paper finds that the competition effect is significant. To enhance competition, bidding documents can be distributed free of charge on a website. The bid preparation period can be extended. Security issues are also found to be particularly important to avoid unnecessary cost overruns and project delays. Heavy rainfall and the bidders' low-balling strategy are identified as other factors of project delays. The quality of roads would deteriorate with not only security incidence but also time, precipitation and traffic volume.

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