KATHMANDU: The Ministry of Defense and the Nepal Army (NA) have urged the Public Accounts Committee (PAC) to reconsider the directive given by parliament to cancel contracts in the fast track project.

Rather than obeying the PAC directives, NA and its line Ministry have dragged on the processes related to the project ahead.

Concluding that the Rs 21 billion contract carried out by the NA is erroneous; the committee had first asked the government to cancel the project-related process on April 1.

Again, finding that its directives were not implemented by the Ministry and NA, PAC had written on April 28 and directed the Ministry of Defense to inform about the implementation of the directives as soon as possible.
However, rather than implementing the directives and canceling the contract, the Ministry has written to the Committee urging the latter to reconsider their decision.

At present, Prime Minister KP Oli is taking charge of the Ministry of Defense himself. Sources claim that the letter sent to the committee was prepared under his direction.

The PAC had ruled that the army had narrowed the contract competition in violation of the Public Procurement Act and Regulations. Concluding that there had been irregularities and breaches of the prevalent laws, NA was directed to cancel it and start the pre-qualification process again.

However, NA signed a memorandum of understanding (MoU) for tunnel construction of two packages of Kathmandu-Terai-Madhesh fast track on May 16.

The contract was signed with China State Construction Engineering Corporation Limited for package 1 and Poly Chyangda Engineering Company Limited for package 2 of the tunnel. The MoU to this effect was signed by the project chief of the Kathmandu-Terai Fast Track and Brigadier General Bikas Pokahrel on behalf of the project and Executive Director Xu Yan for package 1 from the contractor side and Project Manager Xhu Taniagyu Barbara for package 2.

The contract signing process was completed as per the provisions of the Public Procurement Act in a full transparent manner. As per the MoU, the contractor was provided six months for the design and three years for the construction. Out of the 11 clusters developed by the NA to complete the project within the stipulated time, the MoU has been signed to construct nine clusters, it is informed.

However, the Public Accounts Committee of the House of Representatives (HOR) had directed to scrap the project noting that the contract was against the preamble of the Public Procurement Act.

Following the committee’s directive, the NA had requested through the line ministry to reconsider its decision claiming that all works were being undertaken in a transparent manner. So far the overall progress is reported to be 11.11 percent and there is a target to reach 16.21 percent by the end of the current fiscal year.

The 72.5-km expressway with a four-lane has a breadth of 25-meter in mountainous areas and 27-meter in Terai areas.

The Defense Ministry has urged PAC for reconsideration of the committee’s directions citing the process contract and its implementation has already moved forward.