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Date: October 30, 2025
By: Nepal’s Construction Times
ADB Nepal Focuses on Progress, Performance, and Quality in New Project Pipeline
The Asian Development Bank (ADB) organized a Business Opportunities Seminar in Kathmandu today, bringing together government agencies, contractors, and development partners to discuss the progress of ongoing infrastructure projects and unveil the roadmap for new investments in the upcoming fiscal year.
The seminar focused on improving project quality, execution efficiency, and transparency, marking a major step toward reforming Nepal’s construction sector.
Shift from “Lowest Bid” to “Best Quality” Selection
One of the most applauded announcements from the seminar was ADB’s move away from the traditional “lowest bidder wins” approach — which has often resulted in poor workmanship and delays — toward a Merit Point Criteria (MPC) system.
Under this system, contractors will be evaluated based not only on cost but also on technical capacity, quality assurance, safety compliance, and past performance. This aligns Nepal with global procurement standards practiced in advanced economies.
“It’s encouraging to see that ADB Nepal is prioritizing quality over price. This will set a new benchmark for Nepal’s construction industry,” said one participant attending the event.
Upcoming Projects Identified Under the Merit Point Criteria
ADB Nepal presented a list of key projects that will adopt the new procurement model during the 2025 cycle. These projects span multiple infrastructure sectors vital to Nepal’s growth:
- SASEC Highway Improvement and Ecology Restoration Project (4 packages)
- SASEC Electricity Transmission and Distribution Strengthening Project – Jumla Substation (estimated value: USD 12 million)
- Urban Resilience and Livability Improvement Project (Pokhara Metropolitan package)
- Kathmandu Valley Water Supply Improvement Project – Phase II (Melamchi New Intake System)
These initiatives collectively aim to boost connectivity, sustainability, and urban resilience, reinforcing ADB’s long-term development partnership with Nepal.
Key Actions to Strengthen Project Portfolio Performance
The seminar also emphasized ADB’s strategic framework for enhancing project delivery and performance. Slides presented during the session highlighted the following focus areas:
- Harmonization among ADB, World Bank, and the Government of Nepal on project readiness and implementation filters.
- Upgrading Nepal’s e-GP (Electronic Government Procurement) system with integrated digital contract and payment management.
- Piloting merit-based procurement to reward value and expertise rather than the lowest cost.
- Improving e-approvals and clearances for environmental, social, and right-of-way (E-ROW) processes.
- Capacity building for procurement, safeguards, and financial teams through continuous training.
- Contract management modernization — real-time progress tracking, cost monitoring, and risk mitigation tools.
- Stronger enforcement of safeguards and OHS standards within project contracts and budgets.
These reforms reflect ADB’s goal of ensuring that infrastructure in Nepal is durable, safe, and sustainable.
Industry Reactions and Future Outlook
Construction professionals and business leaders attending the event welcomed ADB’s direction, noting that focusing on quality and technical merit will help elevate Nepal’s construction standards.
Many participants agreed that low-bid practices often undermine quality, leading to project delays and increased long-term maintenance costs. ADB’s quality-first approach, they said, will promote responsible bidding, fair competition, and stronger project outcomes.
Looking ahead, ADB officials assured continued collaboration with the Government of Nepal and private sector stakeholders to strengthen project readiness and execution.
With improved governance, transparent systems, and value-based procurement, Nepal’s infrastructure sector is poised for more sustainable and impactful growth.
Conclusion
The ADB Business Opportunities Seminar 2025 concluded with optimism and commitment. By shifting toward merit-based selection, digital procurement reforms, and capacity development, ADB has set the stage for a future where Nepal’s infrastructure reflects both quality and accountability.
As the country prepares for its next phase of development, the message was clear:
“Quality is the new foundation of progress.”
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