Kathmandu — The government has begun terminating 50 long-stalled road and bridge construction contracts after years of delay and neglect. The move is part of a nationwide effort to improve accountability and efficiency in public infrastructure projects.
Push for Accountability in Infrastructure Development
The Department of Roads said several projects under the Pushpalal (Mid-Hill) Highway and Federal Road Supervision and Monitoring Offices in Kathmandu, Itahari, Janakpur, Pokhara, and Surkhet are under review.
Among the affected projects, the Janakpur Division has 21 contracts marked for cancellation, Kathmandu seven, Okhaldhunga and Achham five each, Palpa and Damauli four each, and Dhankuta, Pokhara, Gorkha, and the Mid-Hill projects one each — totaling 50.
The process started last week with 17 contracts reviewed on Friday and one on Saturday. Public notices have been issued asking contractors to explain the delays or face termination. Energy, Water Resources and Irrigation, and Physical Infrastructure and Transport Minister Kulman Ghising has directed agencies to take firm action against contractors who secure projects but fail to deliver.
Out of 258 ongoing road contracts, 50 have been labeled critically non-performing after repeated extensions and warnings failed to make progress. Officials said contractors ignored several written and verbal requests to resume work and were absent from project sites, violating agreements and leaving public investments incomplete.
15-Day Deadline and Legal Consequences
The government has given contractors 15 days to submit revised work schedules, reliable resource plans, and valid explanations for the delays. If they fail to comply, contracts will be terminated under the Public Procurement Law, with penalties including blacklisting, forfeiture of performance guarantees, seizure of advance payments with 10% interest, and recovery of remaining costs as government dues.
Officials said the action marks a decisive step toward restoring discipline in Nepal’s construction sector, which has long struggled with delays and cost overruns. “This move reinforces accountability and public confidence in government-funded projects,” a senior road department official said.
