The government has initiated the process of terminating 209 road, irrigation and bridge contracts, citing poor progress despite repeated extensions. The concerned offices are issuing 15-day public notices in the name of the concerned construction companies, asking, "Why not terminate the contracts?"

Two contract termination notices have been issued. The Road Division Office Kathmandu has initiated the process of canceling the most contracts, 57 of which are in progress. Road Division Janakpur has issued notices stating why it should not terminate the contracts of 21 roads, Tumlingtar 17, Doti 15, and Ilam 12.

Others issuing notices on the road side are Road Division Chandranigahapur (5), Nuwakot (2), Lahan (6), Biratnagar (5), Dhankuta (1), Harkapur (6), Palpa (4), Damauli (4), Pokhara (1), Sanfebagar (6), Nepalgunj (4), Surkhet (7), Hetauda (7), Butwal (2), Bharatpur (5), Itahari Postal Planning Office (5), Gorkha Road Planning Office (1), and Mid-Hill Highway Planning Office Ramechhap (1).

Nepalgunj and Pokhara are going to cancel one contract each for the construction of concrete bridges. The contract is also going to be terminated after poor progress is seen in six suspension bridges under the Suspension Bridge Division Lalitpur. Similarly, the process of terminating six contracts under the Babai Irrigation Project has also been initiated. Such contracts are worth several lakhs to crores.

The Road Division Office, Kathmandu, has stated that the process of canceling the contracts has been initiated after they have been kept incomplete for a long time. ‘There has been no progress in some projects since the contract was signed,’ said an official of the Road Division, ‘No work has been done on road maintenance.’

According to the Road Division, only 48 percent progress has been made in the construction and improvement of the Gothatar road section, which was contracted by Nayayug Nirman Sewa on 16 Falgun 2067 for Rs 300,000. According to the contract agreement, its work should have been completed on 30 Jestha 2068. Its contract is also in the process of being cancelled.

Sharada Prasad Adhikari, known as the housewife of Maoist Chairman Pushpa Kamal Dahal, is the company that has the most incomplete contracts in Kathmandu. The company had taken the contract for the improvement of the Sundarbasti-Adarshannagar-Chunikhel-Tupek-Tusal-Jagdol-National Shaheed Park road on 3 Ashad 2072. The work should be completed by 14 Jestha 2079, but the Road Division has stated that the progress is 70 percent so far. Its contract amount is 44.7 million rupees.

There is 80 percent progress in the expansion and improvement of the Akashedhara-Ram Mandir-Krishna Mandir road, which Shailung has taken over. According to the extended deadline agreed upon on 31 Ashad 2073, the work should be completed by 30 Poush 2080. This is a contract worth 65.5 million rupees. Shailung had also taken the responsibility of constructing and improving the road from Police Station to Boharatar Banasthali School in Kathmandu Metropolitan City-16 for Rs 65.6 million. According to the extended time of the contract signed on 29 Ashad 2073, it should be completed by 16 Poush 2080. But the progress is only 72 percent so far.

Shailung had taken the contract for improving the road section from Siddhartha Marg Buddhanagar and Ratna Rajya School to Pandeshwor Mandir on 3 Ashad 2072. Even after extending the time till 29 Poush 2080, the progress is only 24 percent. Its contract amount is Rs 39.3 million. Shailung's contract agreements are also in the process of being terminated. 

The progress of the section connecting the Fruit Market to Teku Bridge under the Bishnumati Link Road taken by Pappu-Danfe JV is only 41 percent. The contract for this project, which was signed on 25 Baisakh 2070 with a completion price of Rs 151.1 million, was till 22 Poush 2077. Preparations are underway to cancel this contract too. 

Subodh Kumar Devkota, Chief of the Road Division Office, Kathmandu, said that most of the contracts for which notices have been published will be terminated. ‘We awarded many contracts from the financial year 2066/67 to 2079/80, but construction entrepreneurs did not show diligence to complete the work on time, some made excuses, and in some places the work could not be completed due to disputes,’ he said, ‘The notice has been issued to resolve such contracts and terminate the contracts of construction entrepreneurs who do not perform work.’ 

Shyam Bahadur Khadka, Spokesperson of the Road Department, said that the notice has been issued asking why the contracts of old sick contracts will not be terminated. ‘The notice has been issued asking the construction entrepreneurs to explain why the contracts of contracts for which work has not been completed despite several extensions,’ he said, ‘In this, the construction entrepreneurs will submit an explanation. Action will be taken against those who have not fulfilled the basic conditions as per the contract. If the progress in the work increases after the notice is issued, it may be reconsidered.’ 

'No one's face is being looked at when it comes to breaking contracts'

^{Kulman Ghising- Minister of Physical Infrastructure, Energy, Water Resources and Irrigation and Urban Development}

What kind of contracts is the government going to break? 

There are three types of contracts. The first is contracts that have become sick due to construction entrepreneurs. There are many contracts that construction entrepreneurs have not worked on for a long time after taking the contract. In them, work has not been done even though there are no problems with the site or budget.

Someone has taken a contract for a low amount and left the work unfinished. There are only 197 road and bridge (paved) contracts with such problems. Contracts under the Ministry of Irrigation and Urban Development also have problems. A notice has been issued asking why such contracts should not be broken. Contracts that have not been worked on and have not made progress are broken 15 days after the notice is issued. After the contract is broken, the contract is called for again. Action is taken against construction entrepreneurs whose contracts have been broken as mentioned in the agreement.

Is it only the construction entrepreneur's weakness that is causing the contract to not progress? 

Both the construction entrepreneur and the contracting authority may be at fault for the contract not being completed. In some cases, the construction entrepreneur tried to do the work, but the work could not be done due to the contracting authority. For example, the contractor could not arrange the budget, there was a dispute or a case on the site. In the case of such contracts, some immediate decisions can be made and the construction entrepreneur can move forward. No action will be taken against the construction entrepreneur in this regard. If the contract is invalid due to the contracting authority's inability to make immediate decisions, we will take action against such employees, project heads, and related employees. Where is it just because they do not make decisions, are they confusing, and the construction entrepreneur did not work? 

The contract has been taken by companies owned by former ministers, chief ministers, and powerful leaders, will such companies also be taken action? 

I have not seen any person. Anyone who does not work after taking the contract is taken action. The people have to suffer, but there is also the possibility that there will be no work for 15 years after the contract is signed? If there was work, employment would have been created. There is a tendency to invest elsewhere without doing the work that is supposed to be done after the contract agreement is signed and the advance payment is made.