Capital

Controversial Pappu Construction barred from bidding contracts

- SAILENDRA ADHIKARI, Kathmandu

Nov 20, 2018-

The Public Procurement Monitoring Office (PPMO) under the Office of the Prime Minister and Council of Ministers has barred Coastal-Pappu Construction from bidding into new contracts.

Issuing a notice on Tuesday, the PPMO stated awarding any contracts to the company would further harm the country and hinder the development works. It would also have a negative effect in the living standard of the general public, the notice states.

The Sikta Irrigation Project in Banke had written to the PPMO on November 12 and recommended the company be blacklisted. The PPMO said the decision to bar the construction company from bidding contracts was taken on November 16 after detailed study of the papers sent by the project.

The decision to blacklist the company follows the termination of a major national contract of construction of the main and link canals and rehabilitation of headworks of the Dunduwa Irrigation System of the Sikta Irrigation Project. The contractor was awarded the contract worth Rs 980 million for the construction but completed only 6.96 percent of the works when the deadline ended on the first week of October.

The construction company, owned by suspended lawmaker Hari Narayan Rauniyar, had gained notoriety for significant delays in dozens of infrastructure projects across the country. Rauniyar was suspended as lawmaker after Commission for Investigation of Abuse of Authority charged him with corruption.

The contractor will now be ineligible for government contracts until the ban is revoked.

Also read: Pappu Construction has billions in contracts—and little work to show

Arrest warrant issued against Pappu Construction chairman

Published: 20-11-2018 12:55

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