KATHMANDU, Oct 19: The government has moved to scrap 50 road contracts that have remained incomplete after agreements.
Under the Department of Roads, 50 contracts in poor condition under the Pushpalal (Mid-Hill) Highway and the Federal Road Supervision and Monitoring Offices in Kathmandu, Itahari, Janakpur, Pokhara, and Surkhet are being terminated. On Friday, 17 contracts were processed for termination, and one more on Saturday.
Contracts with four construction companies including Pappu Cons...
The Road Division Office in Janakpur initiated termination proceedings for 21 contracts, Kathmandu for seven, Okhaldhunga and Achham for five each, Palpa and Damauli for four each, and Dhankuta, Pokhara, Mid-Hill, and Gorkha road projects for one each. A public notice was issued on Sunday asking why these 50 contracts should not be terminated.
Minister for Energy, Water Resources and Irrigation, Physical Infrastructure and Transport, and Urban Development Kulman Ghising had directed subordinate offices to cancel contracts that remain idle despite being awarded. There are 258 such problematic contracts under the Department of Roads.
The notice stated that contractors repeatedly extended deadlines but failed to complete work within the agreed period, leaving projects unfinished and abandoned. Many contractors have not been physically present at work sites for a long time, violating basic contract terms.
Despite written and verbal requests at different times to complete construction, contractors showed no interest, breaching their agreements.
The notice calls on concerned contractors to appear in person within 15 days of publication with revised work schedules, credible resource mobilization plans, completion commitments, and valid justifications supported by evidence if they want to prevent contract termination.
If contractors fail to show progress within that period, their contracts will be canceled as per the Public Procurement Act. They will be blacklisted, and their performance bonds, deposits, and advance guarantees will be confiscated. Ten percent interest on the advance amount will be recovered, and any remaining expenses needed to finish the projects will be collected as government dues.
