Govt moves to terminate long-stalled projects

By A Staff Reporter,Kathmandu, Oct. 18: The government has initiated the process to terminate several long-stalled contracts for road and bridge construction projects that have remained incomplete for years, despite signing agreements.

The Postal Road Directorate under the Department of Roads, the Federal Road Supervision and Monitoring Office, Kathmandu, and the Road Division Offices under Itahari have taken forward the process to terminate contracts of 17 non-performing projects.

Public notices have been issued by the Road Division Offices of Biratnagar, Chandranigahapur, and the Directorate, seeking justification from contractors on why the contracts should not be terminated. 

Of the 17 projects, five each are in Biratnagar and Chandranigahapur, and two are in Nuwakot. Most of these projects involve bridge construction

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

According to the ministry, about 258 contracts related to bridge construction have been stranded for a long time.

The largest contract to be terminated is for the Kankai Bridge in Jhapa. 

The process of terminating the contract for the approximately 723-metre-long Kankai Bridge connecting Jhapa Rural Municipality-2 and Gaurigunj Rural Municipality-1, which has been neglected for 14 years under the Postal Highway Directorate, has moved forward.

A contract agreement was signed with Pappu Construction and Mahadev Khimti Joint Venture (JV) for about Rs. 510 million in 2011 for the construction of the concrete bridge in the design and build model. 

The physical and financial progress of the bridge construction in 14 years is only about 55 per cent. 

Minister Ghising had told residents during the discussion on Sunday that a decision would be taken soon on the construction of the bridge.

It has been mentioned in the notice that in all the projects for which the contract is to be terminated, the contract and plan have been extended repeatedly, and the construction work has been left incomplete and abandoned. The contractors for the project are not showing interest in completing the construction work even within the specified period, read the notice.

It is alleged that the contractor has violated the contract agreement by not showing any interest in completing the construction work, even after being requested and informed in writing and verbally on various dates.

The notice instructs authorised personnel to present evidence within 15 days if there is a valid reason not to halt the termination process. 

Failure to provide satisfactory evidence will trigger contract termination, confiscation of performance security deposits, blacklisting of contractors, and recovery of all government dues, including advance guarantees, 10 per cent interest on advances, and the costs for remaining work, as per the Public Procurement Act, read the notice.

If the contractor does not show readiness to start the work within the said period, the contract agreement will be terminated and blacklisted as per the provisions of the Public Procurement Act, and action will be taken to recover the performance guarantee, deposit amount, advance guarantee and 10 per cent interest on the advance amount, as well as the expenses incurred for the remaining work as government dues.