Nepal Advances Biometric Passport Plans Despite Idemia's Legal Challenge Fa

Published Date : 7/28/2025 

The Nepalese government has cleared the way for German firms Veridos and Mühlbauer to sign contracts for the new biometric passport system, following the rejection of Idemia's legal challenge. 

The Nepalese government has invited German companies Veridos and Mühlbauer to sign their contracts with the Department of Passports (DOP) following clearance from the country’s Supreme Court. The contracts, which involve the supply and management of a new biometric passport system, were awarded to the two firms early last month. However, the process was challenged by Idemia Smart Identity, which cited alleged irregularities in the tender process.

Both German companies were chosen over Idemia, which held the passport contract until then. According to the contract terms, Veridos is expected to supply 6.4 million biometric passports, while Mühlbauer will provide the eMRTD (electronic Machine-Readable Travel Document) system to support the issuance, management, and verification of passports and other secure travel documents.

Idemia raised several issues with the tender process, including what it called “critical administrative and technical non-compliance” issues. The company also claimed that the evaluation committee members faced undue pressure, which may have led to the alteration of the final results. Missing files in the winning bids and currency exchange discrepancies were also cited as concerns.

Idemia filed a complaint with the DOP, but the department’s response was not deemed favorable. This prompted the firm, recently acquired by IN Groupe, to approach Nepal’s Public Procurement Review Committee (PPRC) and file a parallel public interest litigation with the Supreme Court.

The PPRC rejected Idemia’s challenge, stating that the complaint had no merit. The committee also ruled that the $560,000 bid security paid by Idemia should be forfeited and directed to the country’s Inland Revenue Office. The Supreme Court’s decision aligns with the PPRC’s, allowing the German companies to proceed with the signing of their contracts within a two-week period, scheduled for early August.

The new passport production is expected to begin from February next year. This marks the end of Idemia’s 16-year contract with the Nepalese government, which has been in place since 2010. The government claims that the new contract will save it around $12 million compared to Idemia’s previous pricing.

The successful implementation of the new biometric passport system is a significant step forward for Nepal’s digital identity infrastructure, enhancing security and efficiency in travel document management. Both Veridos and Mühlbauer are known for their expertise in the field, and their involvement is expected to bring modern, reliable solutions to Nepal’s passport system. 

Frequently Asked Questions (FAQS): 

Q: Who were the two German companies awarded the contract for Nepal's new biometric passport system?

A: The two German companies awarded the contract for Nepal's new biometric passport system are Veridos and Mühlbauer.

Q: What did Idemia Smart Identity challenge in the tender process?

A: Idemia Smart Identity challenged the tender process, citing alleged 'critical administrative and technical non-compliance' issues, undue pressure on the evaluation committee, missing files in the winning bids, and currency exchange discrepancies.

Q: What was the outcome of Idemia's legal challenge?

A: The Public Procurement Review Committee (PPRC) and the Supreme Court rejected Idemia's legal challenge, allowing Veridos and Mühlbauer to proceed with the signing of their contracts.

Q: How much money is the Nepalese government expected to save with the new contract?

A: The Nepalese government is expected to save around $12 million with the new contract compared to Idemia’s previous pricing.

Q: When is the new passport production expected to begin?

A: The new passport production is expected to begin from February next year. 

More Related Topics :