Kathmandu, August 6

After finding that Raman-Pappu Joint Venture had been involved in numerous irregularities and was flouting rules and regulations related to procurement and construction, the government has blacklisted the construction firm.

The Public Procurement Management Office (PPMO), under the Office of the Prime Minister and Council of Ministers (OPMCM), has also informed that Raman-Pappu JV was found to be acting in a negligent manner in construction of Postal Highway.

Earlier, the Postal Highway Directorate under the Department of Roads had filed a report recommending the government to blacklist the company. After receiving the recommendation from the Directorate, the PPMO decided to blacklist Raman-Pappu JV, which was responsible for the overall construction works of the Postal Highway.

The joint venture was working on the Postal Highway project with financial support of the Indian government.

Interestingly, Raman Construction, a partner of the joint venture, has also won the contract for the reconstruction of the historic Dharahara in Kathmandu.

As per Raman Mahato, managing director of Raman Construction, the company will be allowed to complete the reconstruction of Dharahara.

However, with the company being blacklisted by the government, it will not be allowed to bid for future projects being implemented by any government agency, as per the PPMO.

It has been learnt that various government agencies were preparing to hand over contracts for various works of the Bheri-Babai Diversion Project and Melamchi Water Supply Project to Raman Construction.

Meanwhile, Raman Construction has claimed that other competitor contractors have been putting immense pressure on governmental officials by offering financial sops to get the contracts won by the company cancelled, so that they can build those projects.

“The PPMO is biased against us. It decided to blacklist us without seeking any clarification from us,” Mahato alleged.

Mahato further said that his company will continue to build projects for which it has already received the contracts. About a week back, Raman Construction had won the bid to construct the national pride Bheri-Babai Diversion Multipurpose Project worth Rs 6.17 billion.

Sanjiv Baral, project chief of the Bheri-Babai project, meanwhile, informed that the project office will take a decision regarding whether or not to allow Raman Construction to continue with the project only after holding consultations with the Ministry of Energy, Water Resources and Irrigation.

A few weeks back, the firm had filed a case at the Supreme Court requesting the court to allow the company to bid for future projects.

The court initially issued an interim order in its favour, but quashed the writ in the next hearing.

Last year, the government had blacklisted 46 companies, including two Chinese companies, for flouting rules and regulations related to procurement and construction.