April 30: The Public Accounts Committee (PAC) of Federal Parliament has written a letter to the Nepalese Army instructing the latter to scrap the contract process of the Kathmandu Terai Fast Track Project.
The committee had earlier instructed the Nepalese Army to halt the process and initiate new procurement process following a decision taken on April 1. However, the Nepalese Army ignored the instruction of the committee and moved ahead with the procurement process on Sunday (April 25). Following the move of the army, the parliamentary committee issued a fresh directive to halt the process.
The Nepalese Army on April 25 had approved the financial proposals of two Chinese companies selected in the prequalification round and handed then with the Letter of Intent (LoI). The Nepalese Army was planning to sign contract agreements with the two companies after 15 days. However, the process is likely to halt due to the intervention of the PAC.
The follow-up letter signed by PAC Secretary Dr Rojnath Pandey has instructed the Nepalese Army to terminate the contract process and avail the committee with relevant documents.
The parliamentary panel has concluded that the contract process of the second package of fast track is against the law and the tender bid does not ensure competition among the bidders. Therefore, the committee has instructed the army to scrap the process and initiate fresh process.
Earlier, the committee had written a letter in this regard to the Ministry of Defense. However, the committee has not received any reply from the ministry regarding whether the instructions have been implemented or not. After the Nepalese Army moved ahead with the procurement process, the committee demanded the ministry to furnish details within three days.