Nepal’s Passport Procurement Faces Renewed Scrutiny Amid Supply Concerns

Kathmandu — Nepal’s passport procurement process has once again come under public scrutiny as concerns grow over the country’s dwindling passport inventory and the government’s ability to ensure uninterrupted services for citizens.

The country’s Machine Readable Passport (MRP) project began in 2010 after the Ministry of Foreign Affairs, led by then Foreign Minister Sujata Koirala, terminated the direct agreement with the Indian government for passport production at the Indian Security Press in Nashik.

Following an international bidding process, French company **Oberthur Technologies**—now operating as **Idemia**—was awarded the contract to supply Nepal’s MRP system. Since then, more than 10 million passports have reportedly been issued. The Department of Passports has received recognition for the successful implementation of the technology, with senior officials receiving national honors for their contributions to passport services.

During the COVID-19 pandemic in 2020, the government initiated a procurement process for a new generation of passports by issuing a tender for 50 million passport booklets. However, the bidding process was canceled on the final day of bid submission under the government led by then Prime Minister KP Sharma Oli.

The government subsequently sought to implement a Security Printing Project (SPC), but the initiative became mired in controversy after an audio recording allegedly involving then Minister for Communications and Information Technology Gokul Baskota discussing a financial transaction worth more than Rs. 700 million was leaked to the media.

As Nepal faced shortages of MRP passports, the government issued another international tender for the procurement of two million passport booklets and related systems. Idemia emerged as the lowest responsive bidder and completed the delivery within the agreed timeframe despite the logistical challenges posed by the pandemic.

Following the completion of the initial order, delays in launching a new procurement process prompted the Department of Passports to place an additional order through a variation agreement with the French supplier to maintain uninterrupted passport issuance.

In 2025, the government launched a new passport procurement tender, dividing the contract into two separate packages. The procurement process later became controversial, with allegations that then Foreign Minister Arzu Deuba Rana influenced officials at the Ministry of Foreign Affairs and the Department of Passports in favor of German suppliers over the incumbent French company. Critics also alleged links between the selected bidders and individuals connected to prominent political figures, including Siddhartha Thapa, son of politician Sunil Thapa. Those allegations have not been proven in court.

The procurement process was further questioned after claims emerged that a bid reportedly containing more than 70 compliance deficiencies was nevertheless declared technically qualified. Despite an ongoing legal challenge over the procurement, the government signed contracts with the German companies in July 2025.

Following widespread protests that led to the fall of the KP Sharma Oli-led government, an interim administration headed by former Chief Justice Sushila Karki assumed office. According to accounts of the procurement process, the interim government soon identified an impending shortage of passport booklets.

The German contractors reportedly failed to deliver passports within the agreed contractual timeframe, prompting the interim government to seek emergency assistance from Idemia. The French company subsequently supplied additional passport booklets and associated services, allowing passport issuance to continue without major disruption.

After Nepal’s general election, the Rastriya Swatantra Party (RSP) formed a new government under Prime Minister Balen. However, within its first 100 days, the administration reportedly faced another looming passport shortage as deliveries under the contracts awarded to the German companies had yet to materialize.

Officials are said to be concerned that fewer than 50,000 passport booklets remain in government inventory—enough to meet demand for less than one month. With new passport production requiring approximately two months, the government may once again need to rely on Idemia for emergency supplies to ensure uninterrupted passport services, particularly for citizens seeking foreign employment and overseas medical treatment.