Status of Collusive Bidding in World Bank Funded Road Projects of Nepal

Abstract

The comparative bidding is assumed to be implemented through public procurement for infrastructure projects. The case study of world bank funded projects has been conducted as extension of earlier study to assure the current status of collusive bidding in road projects usingbidding data, contract data, focus group discussion as effective data collection tools fromBid Evaluation Reports, DTOs, World Bank Country Office for Descriptive, qualitative and quantitative analysis to know the status of collusive trend of bidding in two different environment.

The Collusive trending in conventional bidding system is reasonably high with 47% while the number sharply declines with 13% of the total sampled bid. It is revealed that 25% of winning bid is in the range of 0-5% below the Engineers’ Estimate in conventional bidding system while it is only 13.85% in E-bidding. The ratio of bidders purchasing the bid documents and submission is considerably reduced after the launching of e-bidding system.

The environment of construction business has been improved with consistent bidding pattern as revealed in the E-bidding system. Conventional ways of rate analysis uses the district rate and GoN Norms (DOR, DOLIDAR) which are based on labour intensive technology and this doesn’t match with mechanized work system. Norms developed by concerning departments are not compatible with the desired specifications of clients.