French Company IDEMIA Challenges Passport Deal as Nepal Faces Possible Shortage

 KATHMANDU, JULY 13 — The Department of Passport (DoP) has awarded Nepal’s e-passport supply contract to two German companies—Muehlbauer and Veridos—after an international bidding process. The German firms offered prices that were nearly $12 million cheaper than their French competitor, IDEMIA.

Muehlbauer won Package 1, which includes data enrollment, for $11 million. Veridos secured Package 2, the supply and delivery of e-passports, with a bid of $43.94 million. Together, the total contract is worth around $55 million. In comparison, IDEMIA had quoted $17 million for Package 1 and $50 million for Package 2.

After losing the bid, IDEMIA filed a formal complaint with the Public Procurement Review Committee (PPRC). Shortly afterward, a Public Interest Litigation (PIL) was filed at the Supreme Court by a law firm—raising concerns that legal action may be used to delay the project.

The DoP currently issues around 120,000 passports every month and has only about 500,000 e-passports left in stock. Officials warn that if the legal case isn’t resolved soon, delays in finalizing the contract could lead to serious disruptions in passport services.

Some people questioned why Nepal’s own Security Printing Center (SPP) wasn’t given the contract. But documents show that SPP officially declined the project, saying it lacked the necessary technology and staff. A letter from the Department of Passport (dated 06/06/2081 BS) confirmed that SPP did not have the equipment, like a passport printer, or the technical staff required for such a task.

SPP’s only high-capacity printer—the Rotatek 5K Offset—is not suitable for passport printing and hasn't even been fully installed. The center currently operates with just three staff members, and critical technical positions remain vacant. Additionally, SPP has been given only NPR 30 crore for the 2082/83 fiscal year and still owes NPR 65 crore to previous vendors.

Given these limitations, assigning the project to SPP would have been risky and could have led to a passport shortage nationwide, according to government officials.

The DoP says the bidding process was open and competitive, and is urging a quick legal resolution to avoid any disruption in public services.

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