German firms win Rs 7.5 billion passport printing contract

By Republica
Published: June 07, 2025 11:15 AM

KATHMANDU, June 7: Two German companies have secured a combined government contract worth approximately Rs 7.5 billion for printing 6.4 million passports, according to the Department of Passports.

The project was divided into two packages. For the first package, German firm Muehlbauer ID Services GmbH won the bid with an offer of Rs 1.55 billion, outbidding competitors with a lower quoted price. This package includes pre-enrollment, data management, and the establishment of the delivery system.

Muehlbauer is represented in Nepal by Pavindra Malla, who is reported to be close to Prime Minister KP Sharma Oli. The same company currently supplies smart cards used for printing driving licenses in Nepal.

The opening of financial proposals, initially scheduled for May 27, was delayed due to technical issues and completed on Thursday, according to the Department.

For the second package, Veridos GmbH was awarded the contract with a bid of Rs 6.11 billion. This package covers the production of passport booklets, personalization, quality control, and packaging systems. Veridos is represented in Nepal by Sunil Bahadur Thapa, a central committee member of the Nepali Congress and an advisor to President Ram Chandra Paudel.

The DoP said contract agreements with both firms are expected to be signed within the next three weeks. The companies are projected to begin supplying the new passports within six to eight months.

Earlier in the process, the DoP had shown interest in working with French company Idemia. However, the Commission for the Investigation of Abuse of Authority (CIAA) summoned the Department’s Director General and other officials for questioning regarding the procurement process. This led to revisions in the bidding documents and an extension of the application deadline.

Although Idemia submitted the lowest financial bid for the second package, it was disqualified for including a self-imposed discount condition that violated procurement rules. 

Despite efforts to secure the deal for Idemia, the company was ultimately unsuccessful. It is currently supplying passports under an existing contract at a higher rate.