Important: The downloadable 179-page document is consolidated only through the 15th Amendment. The 16th Amendment remains a separate 51-page Gazette. Read both documents together. This page does not present the older compilation as a fully consolidated 16th-amendment text.
The Public Procurement Regulations, 2064 translate the Act into working procedures. The 179-page compilation incorporates amendments through the 15th Amendment dated 2083.03.30. The Public Procurement (Sixteenth Amendment) Regulations, 2083 were published in Nepal Gazette Extra No. 36 on 2083.05.03 and commenced immediately. The amendment contains 41 clauses, including new rules, replacements, threshold changes and repeals.
What is inside
| Area | What the Regulations provide |
|---|---|
| Planning & estimates | Procurement preparation, master and annual plans, packaging, cost estimates and approvals. |
| Qualification & documents | Technical capacity, experience, specifications, prequalification and bidding-document requirements. |
| Procurement procedures | Open bidding, two-stage and two-envelope processes, consulting services, quotations, direct procurement and other methods. |
| Contract delivery | Performance security, work plans, insurance, advance payment, inspection, variation, price adjustment, extension and payment. |
| Remedies & administration | Review, disputes, disclosure, conflict of interest, blacklisting, e-procurement, evaluation committees, records and schedules. |
16th Amendment: major changes
| Rule or area | What changed | Practical effect |
|---|---|---|
| Rules 7 and 14 | Revised cost-estimate approval and procurement thresholds. | Check the amended approval level and amount before approving an estimate or choosing a procedure. |
| Rule 12क | Allows capable technical employees to prepare designs or join consultant-led supervision teams, subject to the stated approvals and procedures. | Public entities may use internal technical capacity in design and supervision with approved arrangements. |
| Rule 17 | Recasts preference for domestic goods. The nearest domestic offer may be selected where it is not more than 15% above the nearest foreign-goods offer, subject to the stated evaluation method. | Domestic preference must be applied during evaluation, not added informally after ranking. |
| Rules 26क and 65ख-65छ | Introduces detailed technical and financial scoring for specified complex works above Rs 1.5 billion, with 50 points for each component and selection by the highest combined score. | These procurements do not follow a simple lowest-price ranking after technical responsiveness. |
| Rules 31ज, 31झ and 31ञ | Revises two-envelope procurement, the average-bid-price route and reverse auction. | The correct route depends on procurement type, amount and the governing Act provision. |
| Rules 65 and 66 | Strengthens rate analysis, clarification, additional performance-security and evaluation wording for potentially unreliable prices. | Evaluators must document whether quoted rates can perform the contract and apply the amended safeguards. |
| Rules 85 and 86क | Revises direct-purchase wording and creates the government e-marketplace procedure. | Marketplace purchases now have separate Rs 10 lakh, Rs 20 lakh and Rs 50 lakh routes. |
| Rule 94क | Adds a procedure for purchasing land for commercial or business projects. | Land proposals are studied, inspected, valued and recommended through the prescribed committee process. |
| Rules 112, 120 and 125 | Revises insurance, contract-period extension and work-completion reporting. | Public entities must check insurance recovery, approval authority, security extensions and completion records against the new text. |
| Rule 139क | Permits incentives, bonuses and other benefits for employees on specified projects where quality performance produces excellent results. | Any benefit must follow the conditions and authority stated in the rule and Act. |
Financial bid evaluation and safeguards
The 16th Amendment substantially changes financial evaluation. Rule 26क applies a 50:50 technical-financial evaluation to qualifying complex works with an approved estimate above Rs 1.5 billion. Rules 65ख to 65छ prescribe separate technical evaluation, reporting, notification, financial opening, financial evaluation and final combined selection.
- The average-bid-price procedure is linked to the amended Act and its applicable procurement route.
- Where rate analysis does not establish satisfactory performance capability, Rule 65 provides for additional performance security equal to 8% of the bidder's quoted amount, subject to its stated conditions.
- The amended financial-evaluation provision removes a financial proposal that is more than 30% below the approved cost estimate, or substantially above the approved estimate, before scoring under the applicable route.
- For the 50:50 method, the successful bidder is the one receiving the highest combined technical and financial score.
See the worked examples and detailed procedure in Financial Bid Evaluation in Nepal.
Government e-marketplace
New Rule 86क authorizes PPMO to develop and operate the government e-marketplace under Section 41क of the Act. For listed goods and other services, the amendment provides:
- up to Rs 10 lakh: direct purchase from one manufacturer, supplier or service provider;
- up to Rs 20 lakh: quotations requested from at least three providers, followed by purchase at the lowest price; and
- up to Rs 50 lakh: purchase through the prescribed reverse-auction procedure.
Domestic manufacturers, suppliers and service providers pay Rs 3,000 for registration and Rs 1,000 for annual renewal. A registration not renewed must be made inactive. Read the full guide: Government E-Marketplace in Nepal.
Contract administration changes
The amendment also changes day-to-day contract management. Rule 112 adds a process for assessing and settling insured damage on public-infrastructure works. Rule 120 redistributes authority for extending procurement-contract periods, links approvals to annual or proportional limits, and requires performance security, insurance and advance-related securities to be extended promptly. Rule 125 now requires a work-completion report, including the as-built drawing, within 30 days of completion and provides for verification, approval and issuance of the completion certificate.
15th Amendment: Rule 120A remains relevant
The earlier compilation's special Rule 120A remains part of the framework. It created a time-bound application window from commencement of the 15th Amendment; it should not be read as creating a fresh 30-day window today. Its main operational points are:
- Certain unfinished contracts with at least 50% physical progress, as well as specified contracts from fiscal year 2082/83, may use the special route.
- The supplier, contractor, consultant or service provider must apply within 30 days of commencement of the rule, explaining the delay and submitting a revised work schedule, justification, assurance of completion and a commitment not to make an extra financial claim because of the extension.
- The public-entity chief may require the schedule to be revised, must verify securities and insurance, and may grant a final extension based on the realistic period needed to finish the balance of work.
- The extension decision is to be completed within 30 days of the application. Predetermined damages are not charged for the period extended under this special rule.
- If no application is made in time, or the work still remains incomplete after the extended period, the contract is to be terminated, the performance security forfeited and blacklisting action initiated.
- The relevant ministry must monitor progress against the submitted schedule; milestone dates may also be revised where necessary.
Repealed provisions and earlier amendments
The 16th Amendment repeals Rules 6, 65क and 145क. The 14th-amendment provisions for design-and-build, EPC and turnkey arrangements remain visible in the base compilation, together with earlier amendments covering electronic procurement, thresholds, direct procurement, review, contract administration and blacklisting.
How to use it
Start with the 179-page base compilation, then apply every relevant replacement, insertion and deletion from the 51-page 16th Amendment. Read the resulting rule together with the parent section of the Act and the applicable standard bidding document. A threshold or procedure can depend on the procurement category, approving authority, method, funding arrangement and contract conditions.
Source note: The amendment PDF attached here reproduces Gazette Extra No. 36 dated 2083.05.03. The source pages were visually checked from cover through the final certification page. For an official publication record, use the PPMO and Department of Printing links provided beside the downloads.