Effectiveness of Introduction of E-Bidding System at Department of Roads (DoR)

Completed Projects

Bidding of public works through electronic media (e-bidding) was introduced in Nepal via a World Bank supported project- Road Sector Development Project (RSDP) in 2007, and Rural Access Improvement and Decentralization Project (RAIDP) in 2010 implemented by the Department of Local Infrastructure Development and Local Roads (DoLIDAR).

Following the successful implementation of e-bidding system through these projects, more than 73 public departments in Nepal and DDCs have been using this system for procurement of services. Moreover, the use of e-bidding for all public works contracts over a value of more than NRS 10 million has been made compulsory and the Public Procurement Monitoring Office (PPMO) is in the process of developing a central e-procurement portal to enhance the efficiency and transparency of public procurement.

Objective

The study seeks to assess the impact of the introduction of e-bidding, especially in Road Sector Development Project (RSDP) and in the Department of Roads on the prices of awarded contracts, and on the Government’s procurement cost.
Moreover, the study also explores the links between introduction of e-bidding and price changes (e.g., increase in number of bidders, increase in competition among bidders, reduction in transaction costs) and estimate their relevance.

Services provided by SW Nepal

Based on the information and experiences of using e-bidding in RAIDP, the study has reviewed the procurement scenario in local roads. In doing so, the study team from SW Nepal has collected data from different road offices, road projects and road directorates in Central Development/Kathmandu Valley, Eastern Development, Western and Mid-Western Development and Far Western Development Regions. Appropriate data entry format has also been developed in MS excel for data compilation and analysis.