March 12: The government has adopted strict criteria while awarding multi-year projects to contractors due to the non-performance of the contractors. While the number of projects is increasing, the implementation part is quite pathetic. Therefore, the government has set new criteria for awarding multi-year projects to ensure timely completion of such projects.

The new criteria have made it mandatory for the contractors to secure the source of funds as per the medium-term expenditure framework before signing the contract.  The contractors will now have to first sign agreement with donor agencies if the projects are to be funded with foreign investment.

As per the new criteria, the Ministry of Finance cannot sign an agreement with the contractors to waive customs duty, income tax, VAT and other taxes without the prior approval of the National Planning Commission (NPC).

According to the Ministry of Physical Infrastructure and Transport, more than 500 projects each worth Rs 300,000 to Rs 1 billion have been delayed, mainly due to non-performing contractors.

Other reasons for the delay is the contractors’ access to influential politicians, dispute in compensation for land acquisition, management of electric poles and drainage system, court orders, protests from the locals among others.