KATHMANDU: The government has initiated the process of terminating 50 more long-idle construction contracts related to road and bridge projects that have remained incomplete for years despite signed agreements.
This follows renewed efforts by the Department of Roads and its subordinate offices to take action against contractors who failed to carry out the work within the agreed timelines.
The termination process is being pursued by various Road Division Offices and regional branches under the Department of Roads, including the Pushpalal (Mid-Hill) Highway Project and the Federal Road Supervision and Monitoring Offices based in Kathmandu, Itahari, Janakpur, Pokhara, and Surkhet.
As part of this initiative, one contract was moved forward for termination on Friday and Saturday, and a public notice was issued on Sunday for 50 contracts in various locations.
The Road Division Office in Janakpur has published a formal notice regarding the planned termination of these contracts. Of the 50 contracts listed, 21 are in Kathmandu.
Other affected areas include Okhaldhunga and Achham, with seven contracts each; five each in Okhaldhunga and Achham divisions; four in Palpa and Damauli; and one each in Dhankuta, Pokhara, Gorkha, and the Mid-Hill Highway project.
This move follows a directive from Urban Development Minister Kulman Ghising, who instructed all subordinate bodies to take firm steps to cancel non-performing contracts and end the trend of contractors winning bids but failing to start or complete projects. Currently, there are 258 contracts officially categorized as “sick” under the Department of Roads.
According to the Department, the contractors in question repeatedly failed to complete the construction works even after receiving multiple deadline extensions and were not responsive to written or verbal requests to resume the projects.
Many of the sites have been left abandoned, causing long delays and hindering infrastructure development.
In the public notice, the government has called upon the authorized representatives of the listed contractors to appear before the relevant office within 15 days of the notice’s publication.
They are required to present a revised work schedule that guarantees project completion within the revised timeline, a credible plan for resource mobilization, a written commitment to complete the work, and a factual explanation supported by evidence if there is any valid reason to avoid contract termination.
Should the contractors fail to show readiness to resume and complete the work within the given timeframe, the government will move forward with terminating the contracts. In addition, the contractors will face blacklisting in accordance with the Public Procurement Act.
The government will also initiate the recovery of all financial securities including performance guarantees, advance payments, deposits, and an additional 10 percent interest on the advance amount. Furthermore, any remaining expenses for the incomplete works will be recovered as government dues.
This strong stance marks a broader effort by the government to ensure accountability in public procurement and infrastructure development, aiming to prevent delays and inefficiencies that have plagued such projects for years.
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