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ECONOMY

Babai Irrigation Project to terminate contract with Aman Construction for lack of progress in four years

KATHMANDU, Sept 12: The Babai Irrigation Project is set to terminate its contract with Aman Construction due to the...

By Republica

KATHMANDU, Sept 12: The Babai Irrigation Project is set to terminate its contract with Aman Construction due to the company's failure to complete any significant work in over four years.


In a notice issued on Wednesday, the project announced its decision to proceed with the termination of the contract after Aman Construction halted progress on six key sections of the project.


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The project has also instructed the company to provide an explanation within 15 days should there be any reasons to avoid contract termination.


The contract will be formally terminated if the company fails to provide a satisfactory explanation. Aman Construction had initially signed an agreement with the Babai Irrigation Project in 2020 AD to complete works on six different sections of the project.


However, despite the lapse of four years, the company has yet to begin work on four of those sections. While limited progress has been made on two sections, with one section reaching 30 percent completion and another 55 percent, the overall work has stalled.


According to the project officials, the company has left parts of the work unfinished, showing no intention of completing the project before the expiration of the contract.

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