Two Bridge Construction Tenders Worth 1 Billion Rupees Fail to Attract Bidders

Kathmandu. The Road Division Office, Khalte's call for tenders for the construction of two 'design and build' bridges worth approximately 1 billion rupees has failed to attract any bids. Construction entrepreneurs claim that the bidding process for these important projects failed due to unrealistic cost estimates and rates that do not match market prices. According to Engineer Tulakant Chaudhary of the Road Division Office, Khalte, the division had called for tenders under four different headings on May 17. Of these, the tenders for two major bridges to be built over the Sun Koshi River did not attract any interest from construction entrepreneurs. Engineer Chaudhary explained the reason for the failure of the tenders, stating, 'After the contractors bid, they said they could not work for the specified amount and did not bid. We faced problems with the 'design and build' model, which is why the tenders did not get awarded.' He added that a file has been sent to the department and that the cost estimate will be revised in the future, with additional budget requested, or the process will be advanced according to regulations. According to the information from the Road Division Khalte, tenders for two large bridges, RDKHT/DB/3701132/082/083-25 (Sun Koshi Bridge at Khurkot under the Khurkot-Manthali road section) and RDKHT/DB/33701132/082/083-26 (Sun Koshi Bridge at Nepathok connecting BP Highway to the Mid-Hills Highway), with an estimated cost of approximately 1 billion rupees, did not receive any bids from entrepreneurs. The Federation of Contractors' Associations of Nepal has expressed serious concern over this incident. According to Mangal Bahadur Shahi, spokesperson for the Federation, construction entrepreneurs did not participate in the bidding process because the cost estimate, rates, and contract conditions prepared for these projects did not match the current market prices, the actual situation in the construction sector, and the project risks. 'Construction entrepreneurs are not running away from competition,' said spokesperson Shahi. 'Due to unrealistic cost estimates, high technical and financial risks, and a definite possibility of commercial loss, entrepreneurs could not participate in the bidding process.' In 'design and build' type projects, the entire responsibility and risk of both design and construction lie with the construction entrepreneur. Therefore, the Federation states that the cost estimate should appropriately include actual market prices, construction materials, labor, equipment, financial costs, risk management, and technical complexities. The Federation has urged the government to proceed with the procurement process for such tenders in the future based on realistic cost estimates, practical contract conditions, and adequate consultation with the private sector. The Federation believes that this will ensure healthy competition, quality construction, and timely completion of development projects.