KATHMANDU: The Kathmandu Upatyaka Khanepani Limited (KUKL) has terminated the contract with Chinese construction company Softbonwater Services (Holding) Inc.

According to the Project Implementation Directorate under KUKL, the agreement made with the said company for the construction of the wastewater treatment plant at Sallaghari in Bhaktapur and Balkumari and Dhobighat in Lalitpur has been terminated.

An agreement was signed with the company to complete the construction of 68.7 million liters of wastewater treatment centers per day within two and a half years.

The agreement was signed in January 2017 to operate for five years.

However, it is said that the contract was terminated because the Chinese company did not proceed with the construction of the processing centers as per the agreement.

The Chinese company did not work satisfactorily despite repeated requests for an extension of the deadline five times.

KUKL decided to break the contract as the company did not work even though it extended the contract period till July 2022.

According to the project, the Chinese company failed to construct the processing center, and violated the instructions given by the KUKL.