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Efficiency in public procurement in Rural Road Projects of Nepal

Author

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  • Benamghar, Radia
  • Iimi, Atsushi

Abstract

Transport infrastructure is important for economic growth. In Nepal, about 20 percent of rural residents have to spend more than 3 hours to go to the nearest marketplace or agriculture center. Public procurement is an important policy instrument to use resources wisely and efficiently. This paper analyzes a series of policy questions, from procurement design to contract management and project quality assurance. The paper finds that the competition effect is significant. To enhance competition, bidding documents can be distributed free of charge on a website. The bid preparation period can be extended. Security issues are also found to be particularly important to avoid unnecessary cost overruns and project delays. Heavy rainfall and the bidders'low-balling strategy are identified as other factors of project delays. The quality of roads would deteriorate with not only security incidence but also time, precipitation and traffic volume.

Suggested Citation

  • Benamghar, Radia & Iimi, Atsushi, 2011. "Efficiency in public procurement in Rural Road Projects of Nepal," Policy Research Working Paper Series 5736, The World Bank.
    • Handle: RePEc:wbk:wbrwps:5736
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    Citations

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    Cited by:

    1. Paul Collier & Martina Kirchberger & Måns Söderbom, 2016. "The Cost of Road Infrastructure in Low- and Middle-Income Countries," The World Bank Economic Review, World Bank, vol. 30(3), pages 522-548.
    2. Atsushi Iimi, 2013. "Testing Low-Balling Strategy in Rural Road Procurement," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 43(3), pages 243-261, November.
    3. Chong, Uven & Hopkins, Omar, 2016. "An international experience on the evolution of road costs during the project life cycle," Transport Policy, Elsevier, vol. 48(C), pages 60-66.

    More about this item

    Keywords

    Transport Economics Policy&Planning; Government Procurement; Debt Markets; Investment and Investment Climate; Post Conflict Reconstruction;
    All these keywords.

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