KATHMANDU, Oct 26: Twelve non-performing irrigation contracts that had been left incomplete for years have been terminated. These contracts were under the former People’s Embankment Program Field Office No. 2 in Jaleshwar, Mahottari. A 15-day public notice to terminate six other stalled contracts under the Babai Irrigation Project was already published on October 16.
Energy, Water Resources and Irrigation Minister Kulman Ghising had instructed subordinate agencies to cancel dormant contracts that were awarded but not executed, leaving projects unfinished. Based on his direction, the termination process was initiated.
The Janakpur-based Irrigation and Water Resources Management Project stated in a public notice on Sunday that even though termination notices were issued in May and July 2024, contractors failed to complete their assigned work. As a result, their contracts were cancelled. Despite repeated requests and public announcements, the contractors showed no concern for resuming work, leading authorities to seize performance bonds as stated in the contract.
The office has also instructed officials to assess completed portions and evaluate the remaining work within 15 days under public procurement laws for further legal and administrative action. The terminated contracts were originally signed in fiscal years 2011/12, 2012/13, 2016/17, and 2017/18.
Process begins to cancel 40 more road contracts
The process has started to terminate an additional 40 road construction contracts that have remained incomplete for years. The Road Division Offices under the Department of Roads in Tumlingtar, Ilam, Hetauda, and Nepalgunj have begun the cancellation process for these contracts.
According to the public notice issued on Sunday, Tumlingtar has 17 stalled contracts, Ilam 12, Hetauda 7, and Nepalgunj 4. These offices questioned why such non-performing contracts should not be terminated. Previously, various road division offices had already started the process to cancel 68 similar inactive contracts.
Minister Ghising had earlier directed subordinate bodies to take strict action against contractors who take contracts but fail to execute them.
The notice mentions that despite multiple deadline extensions, contractors failed to complete work within the agreed timeframe and have been absent from the work sites for a long time, violating basic contractual terms. Written and verbal reminders were also ignored.
Contractors have been asked to appear within 15 days with an updated work schedule, a credible plan for mobilizing resources, a commitment to complete the work, and valid reasons with evidence if they want to avoid contract termination.
If they fail to demonstrate readiness to resume work within the given time, the contracts will be cancelled under public procurement law. The contractors will be blacklisted, performance bonds and advance guarantees will be seized, a 10 percent interest on advance payments will be recovered, and any remaining construction costs will be collected as government dues.
