The Department of Water Resources and Irrigation has terminated 12 long-stalled irrigation contracts that had remained inactive for years. The decision followed a recent directive from Energy, Water Resources and Irrigation Minister Kulman Ghising to end contracts where contractors had failed to perform and left projects incomplete.
According to the department, all the terminated contracts fall under the former People’s Embankment Programme overseen by Field Office No 2, Jaleshwar, in Mahottari district. The department said it had already published a 15-day public notice on October 16 to terminate six additional stalled contracts related to the Babai Irrigation Project.
Minister Ghising had instructed subordinate agencies to take firm action against contractors who secure contracts but fail to carry out the work, leaving projects in limbo. Acting on this directive, the department advanced the process to terminate non-performing contracts.
The Irrigation and Water Resources Management Project in Janakpurdham issued a public notice on Sunday, confirming the termination of contracts originally intended for completion between May 29 and July 16, 2024. It said contractors had abandoned the works despite repeated requests and public notices. The office has also moved forward with action to seize performance bonds in line with contract provisions.
Furthermore, in accordance with the Public Procurement Act, the project has instructed relevant offices to complete assessment of the completed works and valuation of the remaining ones within 15 days to proceed with further action.
The cancelled contracts date back to Fiscal Years 2011/12, 2012/13, 2016/17, and 2017/18.
Process Begins to Terminate 40 Additional Road Contracts
Meanwhile, the Department of Roads has initiated the process to terminate 40 more stalled road and bridge construction contracts that have remained incomplete for several years.
The Road Division Offices in Tumlingtar, Ilam, Hetauda, and Nepalgunj issued separate public notices on Sunday, seeking clarification from contractors about why the contracts should not be cancelled. Tumlingtar has 17 such contracts, Ilam 12, Hetauda seven, and Nepalgunj four — totaling 40 stalled projects.
The department has already begun the process of terminating 68 other non-performing contracts in previous rounds.
Minister Ghising had earlier directed all concerned agencies to end the tendency of contractors acquiring projects without completing them, causing long delays and leaving development works stranded.
The notices state that contractors repeatedly extended project deadlines without showing progress and remained absent from work sites for long periods, violating the basic terms of the contract. Despite multiple written and verbal requests, the contractors failed to complete the works as agreed.
The department has called on contractors to appear within 15 days with a revised work schedule, a reliable resource mobilization plan, a firm commitment to complete the work, and any valid evidence to justify why their contracts should not be terminated.
If contractors fail to demonstrate the intent to resume work within the given period, the offices will terminate the contracts under the Public Procurement Act, blacklist the firms, seize performance bonds, deposits, and advance guarantees, and recover 10 percent interest on the advance payment along with other outstanding government dues. -- RSS
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