IDEMIA Smart Identity has filed a formal complaint against Nepal’s Department of Passports after losing a major e-passport contract to two German firms. The department awarded Letters of Intent to Veridos GmbH and Muehlbauer ID Service GmbH for passport printing and system management on June 6, 2025. IDEMIA, which has supplied passports to Nepal since 2010, claims the decision was flawed due to administrative and technical non-compliance by the selected companies.
The contract was divided into two packages. Muehlbauer ID Service received the first package for managing the eMRTDS system, valued at over Rs1.55 billion. Veridos GmbH won the second package for ePassport production, worth over Rs6.1 billion. IDEMIA had submitted bids for both packages on February 21, 2025, but was informed on June 5 that its bids were unsuccessful.
A technical committee led by Tirtha Raj Aryal, director general of the Department of Passports, confirmed receiving IDEMIA’s complaint and stated the committee will review the issues raised. However, the complaint details remain confidential. Sources revealed concerns about missing technical items from the winning bidders and pressure on committee members to alter evaluation reports.
Nepal’s procurement law allows bidders to file complaints within seven days if they believe the evaluation process is unfair. The Public Procurement Review Committee handles further disputes if needed. IDEMIA emphasized that its financial bids were very close to the winners’ and that differences in currency exchange rates could have resulted in cost savings for Nepal.
Since 2010, IDEMIA has provided Nepal with machine-readable and biometric passports, supplying over 10.5 million passports since biometric versions were introduced in 2022. The Department of Passports issued an international tender on November 28, 2024, to supply 6.4 million passports over five years, attracting five international bidders.
Foreign Minister Arzu Rana Deuba said the bids were evaluated following regulations and that an agreement with the selected firms is expected within 20 to 25 days. IDEMIA maintains its commitment to transparency and delivering secure identity solutions meeting international standards.
