Govt to end contracts of 50 road projects

By A Staff Reporter

Kathmandu, Oct. 20: The process has begun to terminate an additional 50 long-stalled contracts for road and bridge construction projects that have remained incomplete for years despite agreements being signed.

Under the Pushpalal (Mid-Hill) Highway Project and the Department of Roads, the Road Division Offices under the Federal Road Supervision and Monitoring Offices in Kathmandu, Itahari, Janakpur, Pokhara, and Surkhet have initiated the termination process for 50 non-performing contracts.

The process to terminate 17 long-pending contracts was initiated on Friday, and one non-performing contract on Saturday.

The concerned road division offices have taken initiative to terminate contracts for projects that have remained incomplete for years following the instruction of Minister for Physical Infrastructure and Transport Kul Man Ghising.

Minister Ghising had directed subordinate offices to terminate contracts for non-performing projects in order to end the trend of contractors taking contracts but leaving projects stranded without progress.

Public notices have been issued separately by the Road Division Offices in Janakpur, Kathmandu, Okhaldhunga, Achham, Palpa, Damauli, Dhankuta, Pokhara, and Gorkha, seeking justification from contractors on why their contracts should not be terminated.

According to the notice, the Road Division Office Janakpur has asked to explain regarding 21 contracts, Kathmandu seven, Okhaldhunga and Achham five each, Palpa and Damauli four each, and Dhankuta, Pokhara, Mid-Hill (Pushpalal) Highway Project, and Gorkha one each.

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

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 but 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 extended period, read the notice.

It is alleged that the contractors have violated the contract agreement by not showing any interest in completing the construction work, even after requesting and informing the contractors in writing and verbally on various dates.

The notice instructs authorised personnel to present evidence within 15 days if there is a valid reason to halt the termination process. 

Failure to provide satisfactory evidence will result in 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 costs for remaining work, as per the Public Procurement Act, read the notice.