亚开行-尼泊尔的幽灵承包商（英）-2023-6页_133kb

Summary of Ghost Contracting Report in Nepal

Introduction

Ghost contracting refers to a situation in procurement where a foreign bidder, part of a joint venture with a local contractor or subcontractor, disappears after winning a bid, leaving the local partner or subcontractor to handle all contract execution without foreign involvement. This report details the analysis from the Asian Development Bank (ADB) in Nepal, focusing on sectors like transportation, urban, and water projects, with comparisons between 2018 and 2021.

Background

• Ghost contracting is a significant issue in Nepal, particularly in the transport and urban/water sectors.
• The Nepal Resident Mission, in collaboration with ADB, conducted analyses in 2018 and 2021 to evaluate the effectiveness of mitigation measures.
• Foreign contractors often dominate larger contracts, but this does not always address project delays due to capacity and compliance issues.

2018 Findings

• High prevalence of ghost contracting, especially for smaller contracts. Data showed:
  • Less than $5 million: 100% absence of foreign partners.
  • $5 million–$10 million: 100% absence.
  • $10 million–$20 million: 70% absence.
  • Over $20 million: 63% absence.
• In the energy sector, foreign contractors notably executed contracts in-house, reducing ghost contracting risks.

2021 Update

• Ghost contracting improved in the urban and water sectors, with:
  • Less than $5 million: 100% still affected.
  • $5 million–$10 million: 67%.
  • $10 million–$20 million: 50%.
  • Over $20 million: 50%.
• Transport sector showed improved compliance due to the use of single foreign contractors, eliminating joint ventures.
• Local partners may perform well without foreign support, but issues like insufficient capacity and poor local engagement remain common.

Stakeholder Opinions

• Road project directors cited reasons such as:
  • Insufficient local capacity.
  • Time-consuming initial adaptation.
  • Undervaluation of Nepalese labor and hostilities from strikes.
  • Legal hurdles without local partners.
• Water project directors highlighted barriers, including contract requirements for high experience levels beyond local capabilities, leading to reliance on "ghost contractors."

ADB Recommendations

During Bidding and Preparation

• Appropriate contract sizing: Align based on market analysis to ensure effective local involvement.
• "Abnormally low bid" provision: Discourage low bids by requiring explanations and potential rejection if not justified.
• Flexible evaluation criteria: Reduce minimum experience requirements to support domestic contractors.
• Clarified engagement plans: Mandate joint-venture partners to detail roles and responsibilities.
• Representative requirements: Ensure contractor representatives are full-time employees and on-site.

During Contract Implementation

• Monitored adherence: Use certifications and notices to enforce presence requirements.
• Time-bound action plans: Work with contractors to rectify issues and track progress.
• Performance monitoring: Implement systems to evaluate resource use and advance payments.
• Alternative payment mechanisms: Consider paying advance and interim payments in the employing country to address cash flow issues.
• Capacity development: Enhance training for executing agencies and supervision.

Concluding Thoughts

The measures suggested and implemented appear effective in mitigating ghost contracting, with notable improvements in 2021. The experience from Nepal offers valuable lessons for other ADB-funded projects and countries facing similar procurement challenges.