Wednesday, March 25th, 2026

Govt warns to terminate contract of Narayanghat-Butwal road section citing slow progress



KATHMANDU: As the construction works along the Narayanghat-Butwal road section of the East-West Highway remained intolerably slow, the government has warned the contractor of contract termination.

The South Asia Sub-Regional Economic Cooperation Road Connectivity Project of the Department of Roads said that the contract agreement would be terminated if the existing way of working of the contractor was not improved.

The 114 kilometers of road stretch was separated into two sections while awarding the contract through a global bidding process.

The China State Construction Engineering Corporation Limited had won the tender bidding of both sections for pledging to construct the road section at the minimum base rate.

It is said that several complaints were received on the part of the construction company regarding the dillydallying of the project.

The project was expected to complete on August 7, 2022.

However, the construction company completed just 18 percent of the total task by the final deadline.

Against this backdrop, the Department of Roads has warned construction companies to mend their ways and ensure reforms in a month otherwise get ready to face contract termination.

The Department has further said that the travelers and vehicles have faced several issues including difficulties in travel, air pollution and others due to the carelessness of the construction company.

The community people in the affected area have also suffered while road accidents have soared.

As the contract agreement ended on August 7, the government has extended the deadline for one more year at the request of the construction company but the construction works at present have halted, Chief Engineer of Narayanghat-Butwal Road Project (Eastern Section) Ramesh Kumar Dristi said.

The project being developed with nearly Rs 17 billion in loan assistance from the Asian Development Bank.

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