Nepal has officially ended the 16-year-long partnership with French company IDEMIA, which had been managing the country’s passport system. The government has now handed the job over to two German firms to improve transparency, reduce costs, and upgrade to a more secure and modern system.

Kathmandu, July 22 – The Nepal government has officially ended the long-standing control of French security company IDEMIA over the country’s passport system, handing over the project to two German firms after a drawn-out legal and procurement battle.

The Public Procurement Review Committee (PPRC) this week dismissed IDEMIA’s objections against the Department of Passport’s (DoP) decision to split the new e-passport contract between German companies Veridos GmbH and Muehlbauer GmbH. The committee found no merit in IDEMIA’s claims of irregularities, clearing the way for the new contractors to move forward.

As a result, IDEMIA will lose its $560,000 bid security deposit, which will now be transferred to the Inland Revenue Office.

The DoP issued formal Letters of Award to Veridos and Muehlbauer on July 22, giving both firms 15 days to sign the contract. The new passport system is expected to be up and running by February 2026.

IDEMIA, which has managed Nepal’s passport system since 2009, has faced repeated criticism for high costs and lack of transparency. A 2024 report from Nepal’s Auditor General revealed that although IDEMIA was initially contracted to supply 2 million passports, it was later allowed to deliver 3.1 million — a 150% increase — without fulfilling key IT infrastructure requirements.

More troubling was the pricing. IDEMIA charged $10.13 per passport, totaling around $67 million. The new contract, by contrast, will cost $55 million — or $8.59 per passport — including both passport booklets and the full digital enrollment system, saving the government $12 million.

Officials say this move exposes flaws in past procurement practices and highlights the importance of involving multiple vendors in major government projects. Although IDEMIA denied being behind a separate Supreme Court case aimed at halting the new contract, the same lawyers appeared in both legal proceedings, raising questions about the company's intentions.

A senior legal official remarked, "IDEMIA tried to block the new deal not by competing fairly, but by dragging the process through legal loopholes."

With both the Supreme Court and PPRC now having dismissed legal challenges, the DoP can move ahead with implementation.

Under the new plan, Veridos — partly owned by Germany’s federal printing office — will manufacture Nepal’s biometric passports. Muehlbauer will handle the nationwide setup of the digital enrollment system, covering all 77 districts and diplomatic missions.

The new system will comply with international e-passport standards (ICAO e-MRTD) and is expected to improve security, efficiency, and transparency. The first batch of passports from Veridos is expected within six months of signing the contract.

“This isn’t just a change of supplier — it’s a major step toward transparency and cost-effectiveness,” said a DoP official. Full implementation is expected by early 2026.

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