Kathmandu, Oct 19: The Department of Roads has begun terminating 50 additional non-performing contracts for road and bridge projects that have remained stalled for years.
According to department offices under the Pushpalal (Mid-Hill) Highway and various federal road supervision units in Kathmandu, Itahari, Pokhara, Surkhet, Janakpur, and Damauli, the process to scrap these contracts is now underway. Officials said procedures were initiated for 17 contracts on Friday and one more on Saturday.
The Janakpur Division Office has issued a public notice to cancel 21 contracts, the highest among all divisions. Kathmandu reported seven, Okhaldhunga and Achham five each, while Damauli and Palpa have each listed four for termination. Similar notices have also been issued by offices in Dhankuta, Pokhara, Gorkha, and the Mid-Hill Highway project.
Out of 258 contracts currently classified as “ailing,” 50 are being processed for cancellation. Minister for Energy, Water Resources and Irrigation, Physical Infrastructure and Transport, and Urban Development Kulman Ghising recently directed all subordinate agencies to take strict action against contractors who repeatedly delay work and leave projects incomplete.
Public notices say many of these contractors repeatedly extended project deadlines but failed to show progress, leaving worksites abandoned and violating key contract terms. Despite multiple written and verbal requests to complete construction, the contractors showed no interest, the notices state.
Contractors have been given 15 days to submit a revised work plan, a credible resource mobilization proposal, and a written commitment to complete their projects. If they have legitimate reasons to avoid termination, they must present verified evidence in person to the respective offices.
If no effort is made to resume work within the given period, the government will terminate the contracts as per public procurement law, blacklist the companies, confiscate performance and advance guarantees, and recover 10 percent interest on advances. The remaining project costs will also be recovered as government dues, according to the notice.
People’s News Monitoring Service
Login to add a comment