Govt to end non-performing contracts

By A Staff Reporter,Kathmandu, Oct. 17: The government has initiated the process of terminating contracts for several irrigation projects that have remained stalled for years due to lack of progress.

The Babai Irrigation Project has issued a public notice on Thursday announcing the termination of contract agreement signed with Aman Construction Company, Gulariya Municiplaity-5 about six years ago.

The project had entered a contract agreement with the company in the fiscal year 2020/21 to carry out canal maintenance, command area protection, building maintenance and other works. 

The construction progress of four out of the six contracts is zero. One has 30 per cent and the other has 55 per cent progress.

Earlier, Minister for Energy, Water Resources and Irrigation Kul Man Ghising had directed subordinate bodies to terminate contracts of non-performing projects to end the trend of taking contracts but not working and leaving projects stalled.

According to the Babai Irrigation Project, despite publishing notices repeatedly, it has not started the work as per the agreement and has not given any progress towards completing the work even after the contract period has expired. 

A notice has been issued to the concerned authorised person to present at the project office with evidence within 15 days if there is any concrete reason not to proceed with the process of action by terminating the contract agreement.

"If the evidence submitted is not reliable or satisfactory as per the rules, the process of confiscating the amount deposited as performance security and deposit and blacklisting will proceed as per the provisions of the agreement and the Public Procurement Act," read the notice.

Under the Department of Water Resources and Irrigation, 25 contracts, including the national pride project Bheri Babai Diversion Multipurpose Project and Sunkoshi Marin Diversion Multi-Purpose Project, are listed as no-performing projects.

Out of them, the process of terminating the contracts of six projects has been taken forward.