Govt to terminate contracts for Pokhara-Muglin and Narayangadh-Butwal roads amid Chinese contractor’s lax performance

KATHMANDU: The government is set to terminate its contracts with the Chinese construction company responsible for the construction of the Narayangadh-Butwal and Pokhara-Muglin roads.

Despite numerous warnings from the government, the Chinese contractor has failed to demonstrate an improvement in their work, prompting the decision to cancel the contracts.

The government’s decision stems from the exceedingly slow physical progress on these road projects, which should have been completed within a reasonable timeframe.

The contracts with the Chinese companies have been in place for an extended period, and the lack of substantial progress has become a matter of serious concern.

The government is actively preparing to cancel the contracts for the expansion of the western section of the Pokhara-Muglin road and the eastern section of the Narayangadh-Butwal road. Both of these road contracts were initially awarded to Chinese companies.

The extension project for the Muglin-Pokhara road is being executed in two sections.

According to the project’s progress report, there has been only a 31.5 percent completion rate in the eastern section, stretching from Ambukhaireni to Jamune.

In contrast, the western section, from Jamune to Pokhara, has seen a meager 8 percent completion rate.

The contract for the western section was signed on May 16, 2021, and work commenced on August 28, 2021, with the Chinese company Yanhui Kaiyuan Highway and Bridge Construction in charge.

This contract is valid until August 2024.

Arjun Jung Thapa, Joint Secretary of the Foreign Division of the Ministry of Physical Affairs, reported that preparations were underway to cancel the contract for the western section of the Pokhara-Muglin road extension.

This decision comes as a result of the Chinese contractor’s failure to meet their obligations, despite prior warnings from the ministry.

Thapa notes that, despite the warnings, the construction company only sent photos of equipment that were brought to the Kerung checkpoint but had not entered the Nepali server.

In two years, the company’s progress has been virtually nonexistent, with even basic road repairs, such as pothole filling, left unaddressed.

In the eastern section, work has already begun on a 7 km stretch of black pavement in the Anbukhaireni section of Tanahun.