Saturday, August 22nd, 2026

Process begins to scrap 16 stalled road contracts along Karnali highway



JUMLA: The Road Division Office in Jumla has initiated the process to terminate 16 long-stalled road construction contracts along the Karnali Highway after contractors failed to carry out work despite signing agreements.

Issuing a 15-day public notice, the office said the contracts, covering road projects in Kalikot, Jumla and Mugu, were being scrapped after repeated failure to complete work within the agreed timelines.

According to Information Officer Saurav Kumar Singh, the affected contracts include 12 projects in Kalikot, three in Jumla and one in Mugu. The agreements had been signed between fiscal years 2074/75 and 2082/83.

The office said it had moved to end the contracts to curb the growing trend of contractors securing projects and leaving them incomplete for years.

Road Division Office Chief Shravan Kumar Mahtara said contractors had been repeatedly urged—both formally and informally—to complete construction works but showed no interest in resuming or finishing the projects.

He said the contracts were being terminated in line with public procurement laws.

Under the legal provisions, authorities will proceed with blacklisting contractors, confiscating performance bonds, deposits and advance payment guarantees, recovering 10 percent interest on advance payments, and collecting the cost of completing remaining works as government dues.

Earlier, the office had already terminated contracts of 10 other stalled road projects along the Karnali Highway.

Publish Date : 27 June 2026 20:26 PM

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