Friday, March 27th, 2026

Contract terminated for long-delayeaa 9d Babai Irrigation Project works



BARDIYA: The Babai Irrigation Project has begun terminating long-stalled contracts that were left incomplete for years despite repeated extensions and warnings.

The project on Wednesday issued a public notice announcing the termination of its contract with Aman Construction Company, based in Gulariya–5, for failing to carry out construction work even years after signing the agreement.

According to the project office, the contract with the company was signed in fiscal year 2020/21 for the repair and maintenance of canals, command area protection, and building maintenance. Out of six contracts awarded, four have recorded zero progress, while one has achieved only 30 percent and another 55 percent completion.

The move comes in response to directives from Minister for Energy, Water Resources and Irrigation, and also Minister for Physical Infrastructure and Urban Development, Kulman Ghising, who has instructed subordinate agencies to terminate “non-performing and dormant contracts” that have left key projects paralyzed.

Project officials said Aman Construction was repeatedly notified to resume work but failed to comply.

“Despite several public notices and reminders, the contractor neither mobilized workers nor completed work within the contract period,” the project stated in its public notice.

The Babai Irrigation Project,  a long-running national priority project, has faced multiple setbacks due to non-performing contractors and procedural delays. Officials said the termination process would now open the way for re-tendering to ensure timely completion of remaining works.

Publish Date : 16 October 2025 10:34 AM

Economic Digest: Nepal’s Business News in a Snap

KATHMANDU: Economic Digest offers a concise yet comprehensive overview of

US President Trump extends pause on strikes against Iranian energy sites by 10 days

WASHINGTON DC: US President Donald Trump has extended a pause

Western system to bring rain across Nepal today

KATHMANDU: The Weather Forecasting Division has reported a partial influence

NRB issues today’s foreign currency exchange rates

KATHMANDU: Nepal Rastra Bank (NRB) has set the foreign exchange

RSP poised to form govt with historic mandate

KATHMANDU: The Rastriya Swatantra Party (RSP) is preparing to form