Subregional Transport Facilitation Project
sector: Transport | country: Nepal
The absence of international joint venture partners in the implementation of international competitive bidding (ICB) contracts awarded to them was observed during project implementation. To ensure involvement of all joint venture partners in contract administration, it would be necessary for each individual joint venture partner to issue a guarantee against the collateral for their individual and joint liability. Issuance of individual and joint liability along with a performance bond would ensure liability for the work among all joint venture partners.
The government needs to review and include interim milestone dates in the contract documents to ensure timely work completion and avoid extensions.
There were some difficulties in contract administration between Department of Customs (DOC) and United Nations Conference on Trade and Development (UNCTAD). Although the contract for automatic system of customs data (ASYCUDA) was signed between Department of Roads (DOR) and UNCTAD, DOC was the main agency to supervise UNCTAD’s work. DOC felt that it was less effective in the UNCTAD contract implementation because it was not a party to the contract. Contract provisions should have clearly stated the role, responsibilities, and implementation arrangements of DOC.
The government needs to institutionalize a safeguard system within the organizational framework of the project, particularly during implementation, for effective monitoring and supervision of and timely compliance with safeguard covenants.