KATHMANDU, July 17: The government has started penalizing the companies responsible for building a parapet and installing floodlights at the Kirtipur-based Tribhuvan University (TU) Cricket Stadium after they failed to meet the July 14 deadline.
As per the contract agreement, the companies must now pay a daily fine of 0.05 percent of the total project cost, which amounts to approximately Rs 200,000 per day.
The Ministry of Urban Development had contracted BKOI-KCDC-BG JV to construct the parapet and Vishan Ishwori Joint Venture to install the floodlights. The parapet project was awarded at Rs 492.5 million, while the floodlight installation was valued at Rs 473.7 million.
Govt pays only Rs 2.5 billion to builders
On July 15, officials informed both companies of the penalties, which will continue to apply until they complete the work, according to Chakravarti Kantha, Chief of the Federal Secretariat Construction and Management Office.
As per the agreement, the companies may continue the work for a maximum of 200 additional days or pay a penalty of up to 10 percent of the total project cost. If they still fail to complete the project within the extended period, authorities will blacklist them.
Kantha said the companies have committed to completing the remaining work within a month. So far, the contractors have installed 4,000 chairs in the parapet section, achieving 63 percent fiscal progress and 77 percent physical progress. For the floodlight project, fiscal progress has reached 29 percent and physical progress 45 percent.
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