234 contracts of sick road projects to be terminated

By A Staff Reporter,Kathmandu, Sept. 28: Some 234 contracts signed for the construction of roads and bridges, which have been abandoned for years without work, are to be terminated. 

The contracts for unattended projects under various divisions, including the Federal Road Supervision and Monitoring Office, Postal Highway, and the Mid-Hill Highway projects, are to be terminated, according to the Ministry of Physical Infrastructure and Transport.

Specifically, 38 sick projects have been identified under the Federal Road Supervision and Monitoring Office, Damak, 75 in Kathmandu, 39 in Pokhara, 49 in Surkhet, 16 in the Postal Highway, and 17 in the Mid-Hill Highway.

The Ministry has also decided to form a special committee to investigate the then and current responsible employees involved in making the contracts dysfunctional by not doing the work required on behalf of the project.

Speaking at a meeting on Saturday with senior officials from the Ministry of Physical Infrastructure and Transport, the Department of Roads, and the Federal Road Supervision and Monitoring Offices, Minister for Energy, Water Resources and Irrigation, Physical Infrastructure and Transport and Urban Development, Kul Man Ghising, emphasised that there is no alternative to terminating contracts for sick projects to put an end to the growing trend of contractors taking projects but failing to deliver.

He said that if a contract for poor performing projects is terminated, the trend of taking a lower amount and signing a contract agreement and taking an advance and investing the money elsewhere but not working will also end.

"There is a situation where contracts are awarded for road projects but work is not done. The state is spending billions of rupees every year for road construction, but citizens are not receiving its benefits. Contract management is seen to be nil. Impunity has increased as action is not taken against those involved in making the contract unattended. Contracts have become sick due to some decisions not being made on time by employees. Such employees should also be investigated," he said.

"Whoever is involved in a poor performance contract, please terminate the contract freely and confidently without succumbing to any temptation. This step will be an important milestone in maintaining peace. I will fully protect you."

 Minister Ghising said any contactors involved in a sick project should terminate the contract freely and confidently without being tempted by anyone. This step would be an important milestone in maintaining good governance. “I will fully protect you."

A contract with a contract value of more than Rs. 20 million is considered a sick project if the construction work is ongoing despite the deadline being extended for various reasons, but progress is less than 50 per cent compared to the initial construction period, even after the deadline has been extended by more than 100 per cent.

Similarly, a contract with more than Rs. 20 million where the construction progress is less than 80 per cent even after the extension of more than 200 per cent of the time, and a contract with more than Rs. 20 million where the construction progress is less than 95 per cent even after the extension of more than 400 per cent of the time, is considered sick contract.

Minister Ghising said that immediate action will be taken against those involved in any work done by the ministry and its subordinate offices, who are found to be involved in irregularities, delay, bribery, or causing inconvenience to service recipients under various pretexts. 

He directed the officials to immediately inform them if anyone caused unnecessary inconvenience by taking their name.