KATHMANDU: The Department of Water Resources and Irrigation has terminated 12 long-pending irrigation contracts that had remained inactive for years after being signed.
According to the Department, the terminated contracts were under the former People’s Embankment Program Field Office No. 2 in Jaleshwor, Mahottari. Likewise, a 15-day public notice was issued on October 16 to terminate six other non-performing contracts under the Babai Irrigation Project.
Minister for Energy, Water Resources and Irrigation, Physical Infrastructure and Transport, and Urban Development Kulman Ghising had earlier directed all subordinate bodies to cancel such “sick” contracts to end the practice of contractors taking on projects but failing to carry out any work, leaving them stranded for years. Acting on this directive, the Department has advanced the process of terminating non-performing contracts.
The Irrigation and Water Resources Management Project, Janakpurdham, informed that despite public notices, the contractor failed to complete the work as per the agreement and eventually abandoned the project. The contract was therefore terminated on Sunday, and the department has also confiscated the performance security as per the terms of the agreement.
Furthermore, the department stated that the measurement of the work completed so far and the evaluation of the remaining tasks must be finalized within fifteen days in accordance with the Public Procurement Act to move ahead with further procedures.
Process underway to terminate 40 more road contracts
The Department of Roads has also begun the process of terminating 40 long-abandoned road and bridge contracts that have remained inactive for several years after agreements were signed.
The Road Division Offices in Tumlingtar, Ilam, Hetauda, and Nepalgunj have initiated action to terminate these contracts as of Sunday. Of the total, Tumlingtar accounts for seventeen contracts, Ilam for twelve, Hetauda for seven, and Nepalgunj for four. Various road division offices across the country have already initiated procedures to terminate sixty-eight sick contracts in total.
Minister Ghising had earlier instructed the concerned offices to take firm action against contractors who fail to start or complete work within the stipulated timeframe.
According to the Department of Roads, many contractors have violated their agreements by showing no interest in completing construction, ignoring repeated written and verbal notices, and remaining absent from work sites for prolonged periods.
A public notice has been issued calling on the authorized representatives of the concerned contractors to appear at the respective offices within fifteen days with a revised work schedule that can be completed within the specified time, along with a reliable plan for resource mobilization and a clear commitment to resume and complete the work. Contractors who have valid reasons for delay have been asked to submit factual evidence accordingly.
If the contractors fail to respond or resume work within the given period, their agreements will be terminated and they will be blacklisted as per the provisions of the Public Procurement Act. The government will also recover the performance guarantees, deposits, advance payments with ten percent interest, and the costs incurred for the remaining work as government dues.
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