Despite a long period of time since the contract was awarded, 25 contracts under the road construction sector in Kathmandu Valley have been terminated. The contracts under the Road Division Kathmandu have been terminated.

The office published a notice on Monday stating that the contract was terminated. Subodh Kumar Devkota, chief of the Road Division, Kathmandu, said that the contract was terminated after there was no progress in the work despite repeated opportunities to work.

‘Out of 57 sick contracts, 25 contracts were terminated,’ he said, ‘Another 32 are in the process of being terminated.’ He said that contracts that have not been completed and have not shown progress despite being given a chance to work will be terminated. The terminated projects were contracted for the fiscal years 2067/68 to 2079/80.

Minister for Energy, Water Resources and Irrigation, Physical Infrastructure and Transport and Urban Development Kulman Ghising had directed subordinate bodies to terminate sick contracts to end the trend of taking contracts but not working and leaving projects stranded. After that, offices under the Road Department had taken the process forward to terminate sick contracts.

The Road Division Office, Kathmandu, had asked 25 construction entrepreneurs for clarification on October 11, asking, "Why not terminate the contract?" The construction entrepreneur was asked to explain. Devkota, Chief of Road Division, Kathmandu, said that the contract was canceled as per the provisions of the Public Procurement Act as the explanation presented by the entrepreneur was not satisfactory.

Chief Devkota mentioned that action will be taken to terminate the contract agreement and blacklist it as per the provisions of the law and to recover the performance guarantee, deposit amount, advance guarantee and 10 percent interest on the advance amount, as well as to recover the remaining expenses incurred for the work as government dues. The construction entrepreneur has been instructed to appear in the office within 15 days.

It is stated that the contract was cancelled due to repeated extensions of the contract and plan, lack of interest in completing the construction work even within the specified period, incomplete and neglected construction work, basic breach of contract, non-existence of the contract term, and failure to settle the contract, as the construction entrepreneur was not physically present at the work site for a long time.