The government has begun the process of terminating 17 long-delayed road and bridge construction contracts that have remained incomplete for years despite repeated deadline extensions.
The Postal Road Directorate, the Federal Road Supervision and Monitoring Offices in Kathmandu and Itahari, and their subordinate road division offices have started procedures to cancel these non-performing contracts.
According to public notices issued Friday, October 17, the Road Division Offices in Biratnagar and Chandranigahapur, along with the Directorate, each proposed the termination of five contracts, while Nuwakot announced two. Most of the projects under review involve bridge construction.
Minister for Physical Infrastructure and Transport Kulman Ghising had earlier directed agencies to take strict action against contractors who delay or abandon projects after securing contracts. The Department of Roads currently has 258 such “sick” contracts.
Ghising also holds the Energy, Water Resources and Irrigation, and Urban Development portfolios.
The largest among those facing termination is the 723-metre Kanakai Bridge in Jhapa, which has been stalled for 14 years. The bridge, under the Postal Highway Directorate, connects Jhapa Rural Municipality-2 and Gaurigunj Rural Municipality-1.
The contract, signed in fiscal year 2010/11 with Pappu Mahadev Khimti Joint Venture (JV) under a design-and-build model, has achieved only about 55 percent physical and financial progress. During a field inspection on October 12, Minister Ghising told local residents that a final decision on the project would be made soon.
According to the public notice, all the projects under review have received multiple extensions but still show little to no progress. Many contractors have abandoned work sites and ignored repeated written and verbal instructions to resume construction, violating the terms of their agreements.
Contractors have been given 15 days to submit a revised work schedule, a credible resource mobilisation plan, and written justification—supported by evidence—explaining why their contracts should not be terminated.
If they fail to respond or show readiness to continue within the deadline, the offices concerned will terminate the contracts in line with the Public Procurement Act. The firms will be blacklisted, and their performance bonds, deposits, and advance securities confiscated. The government will also recover 10 percent interest on the advance payments and initiate proceedings to recoup any additional costs incurred in completing the projects as government dues.
you need to login before leave a comment
Write a Comment
Comments
No comments yet.