Govt to rent homes for VIPs after buying plan collapses

KATHMANDU, MAY 18 - After the government’s plan to buy houses and apartment units in Kathmandu for VVIPs, VIPs and other high-ranking officials failed, it has now proposed to rent the property.

The government was forced to shelve the plan after only a single property developer bid for the scheme, which was against the Public Public Procurement Act (PPA) that seeks competition.

The government changed tack and pursued a different approach to acquire accommodation for its top brass considering “security concerns” and their “prestige”.

As per the government’s action plan, former presidents, vice-presidents, prime ministers, judges, special personalities and members of the constitutional bodies appointed after mid-April 2007 and incumbent high-ranking officials will be eligible to live in these houses.

The Department of Urban Development and Building Construction (DoUDBC) is preparing to issue a tender notice to rent them.

“We have now planned to acquire houses on rental basis, and we have sent a proposal to the Urban Development Ministry. Once we get the go-ahead from the government, we will move forward with the process,” said Shambhu KC, director general at the DoUDBC.

“The plan to purchase houses has been put off for now as it could not be implemented by following the PPA. The number of houses to be rented will be fixed after the decision of the government,” said KC.

The original plan was to buy 25 standalone houses and 25 apartments. The scheme to buy homes for government bigwigs comes under the Immediate Action Plan for Governance and Economic Reform 2012, which includes “management of residences for high ranking officials and judges” in the Kathmandu valley. The government has allotted Rs 100 million for the purpose while the Ministry of Finance has pledged another Rs 100 million.

Housing developers had responded coolly to the government’s offer to purchase homes and apartments when the first tender notice was published despite the slowdown in the sector.

Only one company, Civil Homes, had replied to the tender call. The others stayed away citing bureaucratic hassles, tedious procedures and confusing rules.

Meanwhile, DoUDBC officials said that the new plan was being discussed at the ministry while the department has been working on the tender document.

“A decision is likely to be taken soon as the programme falls under one of the immediate government priorities,” said Suroj Raj Rajkarnikar, division chief and superintendent engineer at the Building Construction Maintenance Division Office of the department. According to Rajkarnikar, both firms and individuals will be able to place bids as per the planned tender notice.

“All the people complying with our provision will be allowed to participate in the tender process,” he said. 

Earlier, when the government had proposed to carry out feasibility studies of housing estates for its possible use, 10 property developers had applied for their projects to be considered. However, nothing came of it as the prices were well beyond the government’s projections. Three housing projects and seven apartment projects had applied for the feasibility study.