Discusses the legal requirements for selling to the host government, including whether the government has agreed to abide by the WTO Government Procurement Agreement or is a party to a government procurement chapter in a U.S. FTA. Specifies areas where there are opportunities.
Last Published: 8/1/2019
Like many governments around the world, the GON finances public works projects through borrowing from the Multilateral Development Banks.  Please refer to “Project Financing” Section in “Trade and Project Financing” for more information.  Under current regulations, the government may purchase goods and services worth up to Nepal Rupee (NPR)100,000 (approximately $1,000) directly from the market.  For goods worth NPR 100,000 to 500,000 (approximately $1,000 to $5,000), the government is required to invite price quotes from at least five suppliers.  Government procurements over NPR 500,000 (approximately $5,000) must be submitted for tender or bidding.  The GON publishes its tenders in accordance with procedures outlined in the Financial Administration Regulations (1999), Financial Procedure Rules (2007), and Public Procurement Rules (2007).  Goods and services must be procured from the supplier or contractor that quotes the lowest price.  There are reports of widespread corruption in government tenders.  Tender calls for major projects with a minimum lead time of 45 days are disseminated to U.S. businesses via the U.S. Department of Commerce’s Trade Opportunity Program (TOP) and Business Information Database System (BIDS:  http://bids.state.gov/).  Many foreign firms find the use of a local distributor or commission agent effective in dealing with government sales, especially since many tenders allow less than two weeks for bid submission.
 

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.