KATHMANDU: The government has intensified efforts to scrap dozens of long-delayed contracts for road and bridge projects that have remained incomplete for years despite repeated deadline extensions.
According to the Department of Roads, the Postal Highway Directorate, the Federal Road Supervision and Monitoring Offices in Kathmandu and Itahari, and several divisional offices have initiated the process to terminate 17 non-performing contracts.
Among them, the Road Division Offices in Biratnagar and Chandranigahapur, and the Postal Highway Directorate each have moved ahead to cancel five contracts, while the Nuwakot Division Office has started procedures to terminate two. Most of these contracts involve bridge construction works that have seen negligible progress.
Minister for Energy, Water Resources and Irrigation, Physical Infrastructure and Transport, and Urban Development Kulman Ghising had earlier instructed subordinate agencies to take strict action against contractors who bag projects but fail to deliver, leaving infrastructure projects stranded. There are currently 258 inactive or “sick” contracts under the Department of Roads.
The largest among the contracts set to be scrapped is the Kankai Bridge in Jhapa, which has remained stalled for 14 years. The bridge—stretching approximately 723 metres and connecting Jhapa Rural Municipality–2 with Gaurigunj Rural Municipality–1—was awarded under a design-and-build model during fiscal year 2010/11 to Pappu-Mahadevkhi JV.
Despite over a decade of extensions, physical and financial progress on the project stands at only about 55 percent, officials said. Minister Ghising had recently told local residents that a final decision regarding the bridge would be made soon.
In most of the projects under review, contracts had been extended multiple times, yet contractors failed to mobilize necessary resources or complete the work within the stipulated timeframe. Many contractors have not been physically present at the sites for extended periods, according to the department.
Authorities said that despite repeated written and verbal requests to resume work, the contractors showed little interest in completing the projects, thereby breaching contract terms.
Public notices have been issued calling the concerned contractors to appear at the respective offices within 15 days with revised work schedules, credible resource mobilization plans, and valid reasons for not terminating the contracts. They are also required to provide written commitments to complete the projects.
“If contractors fail to demonstrate readiness to restart work within the given timeframe, contracts will be terminated as per the Public Procurement Act,” the notice reads. The agencies will then move to blacklist the contractors, confiscate performance bonds, security deposits, and advance payments, recover 10 percent interest on advances, and pursue recovery of remaining costs as government dues.
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