ECONOMY

Govt terminates three infrastructure projects contracts over non-performance

The government has terminated contract agreements for three infrastructure projects in Rautahat that have long remained stalled.
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By REPUBLICA

KATHMANDU, Nov 1: The government has terminated contract agreements for three infrastructure projects in Rautahat that have long remained stalled.



The Lamaha Khola bridge on the Chandranigahpur–Gaur road, the Laukaha Khola bridge on the Chapur–Sukdev Chowk–Laukaha road section, and the road upgrading project on the Dhansar–Bagmati section of the Mahendra Highway are among the projects that faced contract termination. As per the Ministry of Infrastructure Development, these projects failed to reach completion despite repeated extensions of the construction deadlines.


Minister for Infrastructure Development, Sunil Lamsal, stated that a decision has been made to terminate the contracts for these three stalled projects in Rautahat and to move forward with the work through a new procurement process.


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According to Minister Lamsal, the construction of the Lamaha Khola bridge (on the Chandranigahpur–Gaur road) and the Laukaha Khola bridge (on the Chapur–Sukdev Chowk–Laukaha road section) had been left in limbo for the past 10 years.


The agreement for the construction of both bridges was signed on April 3, 2017 with the joint venture of Pappu and Shivashankar, based in Garuda, Rautahat. Although the terms required completion within the fiscal year 2018/19, the deadline was repeatedly extended, eventually reaching a final cutoff date of July 15, 2023. However, the construction was not completed within this stipulated timeframe.


Due to the delays in the construction of these bridges, local residents have long endured significant hardship in their daily travel. Minister Lamsal indicated that the government has decided to complete the remaining work on these stalled projects through a new process. Similarly, the contract agreement for the upgrading and rehabilitation of the Dhansar–Bagmati section of the Mahendra Highway has been terminated.


Minister Lamsal stated that the decision to end the contract was made after it was found that there was zero physical progress on the project, which was supposed to have been completed within the last fiscal year.


The Road Division, Chandranigahpur, has also issued a public notice regarding the termination of these contracts. According to the notice, two contracts with Pappu/Shivshankar JV—for the construction of bridges over the Lamaha and Laukaha streams—as well as the contract for the upgrading of the Dhansar–Bagmati section of the Mahendra Highway, have been terminated.


The government has adopted a strict policy to advance the construction of stalled infrastructure projects across the country. He explained that projects showing a viable path toward completion will be granted one final opportunity; if work still fails to progress, the contract will be terminated, and the remaining work will be completed through a new procurement process.


Minister Lamsal clarified that the government has tightened contract management to put an end to the hardships faced by citizens due to long-stalled projects and to accelerate the construction of public infrastructure.


 

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