Govt Revises Procurement and Licensing Laws

The Government of Nepal has introduced significant legal reforms aimed at expediting stalled infrastructure projects, enhancing public service delivery, and tightening legal procedures in governance.

In a landmark policy shift, the government will now assign incomplete public construction projects, whose contracts have been terminated due to prolonged delays, to the state-owned infrastructure company. This is made possible through an amendment to the Public Procurement Act, 2007, enabling the government to bypass re-tendering in such cases.

Previously, under Clause 59 of the Act, unfinished contracts could only be reassigned to other shortlisted bidders through a 15-day proposal process. With the new provision, a government agency’s head can directly commission the state infrastructure company to carry out the remaining works, provided cost thresholds are respected.

Notably, projects transferred to the state infrastructure company cannot be subcontracted to private firms. Additionally, in special cases, materials required for procurement can also be sourced through the same public entity, streamlining government operations during emergencies or priority projects.

Driver’s License Validity Extended to 10 Years

Amendments to the Motor Vehicle and Transport Management Act, 1992 have extended the validity of driver’s licenses to 10 years from the current 5 years. This change is expected to reduce administrative burdens and improve efficiency in license issuance and renewals.

Similarly, vehicle fitness certification for new vehicles will remain valid annually for five years from registration. Beyond that, certifications will need renewal every six months, reflecting a more stringent regulatory approach to vehicle safety and emissions.

Private Sector Authorized for Vehicle Emissions Testing

In a move to decentralize services, private sector workshops that meet government criteria will now be permitted to conduct vehicle fitness and pollution tests. The Department of Transport Management will authorize these centers to issue compliance certificates, ending the current monopoly held by government-run testing facilities. This change is anticipated to ease congestion and delays at public vehicle testing centers.

Power Project Survey Licenses Can Be Extended by Two Years

Amendments to the Electricity Act, 1992 now allow survey licenses for power projects to be extended by up to two additional years under exceptional circumstances such as natural disasters, strikes, or curfews. This replaces the earlier provision that allowed a maximum five-year extension, increasing the total permissible survey period to seven years. The new clause requires justification based on necessity and relevance, providing greater flexibility to developers facing unforeseen delays.

Revenue Evasion Cases to Be Handled by District Courts

The government has revised the Revenue Leakage (Investigation and Control) Act, 1995, shifting the jurisdiction of initial hearings in revenue evasion cases from the High Courts to District Courts. The change is expected to expedite judicial proceedings and enhance enforcement at the local level.