Responding to a steady stream of complaints from prospective international bidders who have been arguing that the tender specifications for the multi-million dollar national ID project have been manipulated to suit one specific bidder—so far it is unclear which one—Chief Secretary Leela Mani Poudyal has reportedly directed National ID Management Center (NIDMC) to ensure ‘fair competition’ among companies that meet minimum criteria. [break]
The problem is that the ‘minimum criteria’ seems to have been chose rather arbitrarily. If there have indeed been manipulations to suit a particular bidder, as seems to be the case considering the subtle additions in tender specifications that tilt the balance towards a bidder with very specific requirements, it is a matter of grave national concern. The ID cards are supposed to act as a substitute for a number of identity documents for 27 million Nepalis, including citizenship certificates and driving licenses. Substandard ID cards would not only cause the holders great inconvenience, but could also significantly increase the chances of identity theft, false citizenship claims and a number of other frauds.
The chances of such underhand practices should be deemed high since this is the biggest project of its kind ever undertaken in the country, with a whopping price tag of US $117 million. The first phase of the project is being carried out with grant assistance from the Asian Development Bank (ADB) worth US $8 million. Spooked by the prospect of missing out in the windfall, the international bidders have sought amendment to certain clauses in tender specifications like inclusion of companies specializing in ‘driving license’ rather than ‘health cards’ which seem to have been rather arbitrarily inserted in the document. But there are specifications which merit a closer scrutiny before the government considers amending them.
For instance, another tender specification that prospective bidders want amended is the provision of 10 or more years of experience in the relevant field. While the prospective bidders who do not meet this criterion would obviously want to amend this provision, it might also be necessary to ensure quality of the ID cards.
Interestingly, the tender announced on April 29 has been designed under QCBS quality and cost base selection model. This means technical aspects of the proposal would carry 80 percent score, and cost aspect 20 percent. Therefore, if the technical parameters favor one company, there will be no competition at all. The Chief Secretary has rightly inquired if there is still a possibility to renegotiate this clause with ADB.
Considering the enormous importance of the project, this possibility must be looked into, especially by our international donors who claim to be working in the interest of common Nepalis.
Billions of rupees change hands in a contract of such a magnitude, and every precaution should be taken to control wrongdoing. But that is not enough. The quality of the final product is even more important in this case. There is hence a legitimate reason to widen the pool of bidders in order to properly weigh the pros and cons of individual bidders—and choose the best among them.
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