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Nepal to Procure 2.8 Million Passports from IDEMIA through Negotiations to Alleviate Passport Woes

Foreign Minister NP Saud states that the new supply will address the demand for 18 months.

FrontWires by FrontWires
December 31, 2023
Reading Time: 3 mins read
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Nepal to Procure 2.8 Million Passports from IDEMIA through Negotiations to Alleviate Passport Woes

Cabinet Decision to Replenish Passport Stock

To address the pressing issue of passport shortages, the Nepali government has taken a proactive step by resolving to procure 2.8 million biometric passports from IDEMIA Identity and Security SAS France. The decision, made during a Cabinet meeting, aims to replenish the diminishing stock of passports and mitigate the challenges individuals face seeking this essential travel document.

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The Ministry of Foreign Affairs has been entrusted with the task of initiating talks with IDEMIA, a renowned company based in France, to secure the supply of passport books. The urgency arises as the current stock of passport books with the government is on the verge of depletion.

Foreign Minister NP Saud emphasized that the Cabinet’s decision entails procuring 2.8 million passports from the existing supplier and initiating new international bidding processes. This additional bidding process will cover the supply of passport books and the installation of a supporting system for an estimated six million passports. The forthcoming supply of 2.8 million passports is expected to meet the demand for a period of 18 months.

Passport Demand and Supply Situation

The Department of Passports currently possesses approximately 370,000 passport books, which would only suffice for three months of demand. Without immediate action, the country would face a passport shortage. Given that the global competitive bidding process or government-to-government deals for passport procurement can take up to 18 to 24 months, the government opted for negotiations to avoid any disruption in passport availability.

Foreign Minister Saud stated, “We have already initiated a new procurement process to ensure the continuous delivery of passports.” Additionally, plans are underway to issue a new global tender for the procurement of an additional six million passports over the next five years. This initiative will ensure a seamless passport supply after the stock of the newly procured 2.8 million passports is exhausted.

The Department of Passports intends to engage an international consultant to prepare the tender documents for the upcoming international bidding process. Once the consultant completes the document preparation, a new international bid will be announced following a thorough review. Alternatively, a government-to-government deal will be considered if a credible and reliable country presents a proposal.

The official explained, “We will have sufficient time to decide once we finalize the deal for procuring 2.8 million passports. The Department of Passports has already communicated with IDEMIA to inquire about the timeline for supplying the new batch of passports, as the government has entrusted the department to sign a new agreement with the company.”

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Additional Plans and Costs

Simultaneously, the government’s proposal includes plans to establish a passport enrollment center at the Nepali consulate in Chengdu, China, and 26 additional enrollment centers in Nepal. Furthermore, an automated biometric identification system (ABIS) with a capacity to store data for three million people is part of the proposed plan.

To ensure a smooth supply chain and enhance the system’s efficiency, the government has chosen to procure 2.8 million passport books through negotiations, as permitted by article 54 (1) (E) of the Public Procurement Act. The government will be paying IDEMIA a sum of US$10.13 for each passport book.

In December 2020, IDEMIA and the Nepali government reached an agreement for the supply and delivery of the required number of passport books through a competitive bidding process. This marked Nepal’s transition from machine-readable passports to biometric passports or e-passports, fulfilling its obligations to the International Civil Aviation Organization (ICAO). IDEMIA commenced the supply of Nepal’s first-ever biometric passports on November 17, 2021.

Conclusion and Future Plans

According to the proposal put forward by the Ministry of Foreign Affairs and approved by the Cabinet, the Department of Passports had previously purchased passport books at a cost of US$10.45 after tax for 34-page passports and US$10.95 after tax for 64-page passports. The agreement with IDEMIA will remain valid until December 2023 or until the existing passport stocks are depleted.

Due to the high demand for 34-page passports, the current stock of 1.575 million passports has been exhausted. An additional 300,000 passports were procured through negotiations at the same price. Presently, the department has a stock of 370,000 passports, which will suffice for only the next three months, per the proposal the Ministry of Foreign Affairs put forth. The need to procure an additional 2.8 million passports through negotiations with IDEMIA is crucial to prevent a shortage.

Before deciding on the direct purchase of 2.8 million passports, the ministry formed a team of experts to explore possible solutions. The team recommended procuring 1.5 million to 1.8 million passports through negotiations with IDEMIA while simultaneously preparing for bidding.

Stay informed about Nepal’s efforts to ensure a steady supply of passports as the government negotiates with IDEMIA to alleviate the current shortage and enhance passport services for its citizens.

Tags: IDEMIAnegotiationsnepalpassport shortage.passportsprocurement
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