Kathmandu, October 16, 2025 — Contracts for several long-delayed and inactive irrigation projects are now being terminated. The Babai Irrigation Project has issued a public notice on Thursday announcing the cancellation of its contract with Aman Construction Company, Gulariya-5, which was signed about six years ago.
The project had signed a contract with the company in fiscal year 2020/21 for works including canal maintenance, command area protection, and building repairs. Out of the six contracts, four have shown zero progress, while one has achieved 30 percent progress and another 55 percent.
The project had signed a contract with the company in fiscal year 2020/21 for works including canal maintenance, command area protection, and building repairs. Out of the six contracts, four have shown zero progress, while one has achieved 30 percent progress and another 55 percent.
Minister for Energy, Water Resources and Irrigation, Physical Infrastructure and Transport, and Urban Development, Kulman Ghising, had instructed the concerned agencies to terminate inactive contracts in order to end the practice of contractors taking projects but leaving them incomplete and stalled.
The project stated that despite repeatedly publishing notices, the company neither began work as per the agreement nor made any effort to complete the tasks even after the contract period had expired. A public notice has been issued, requiring the concerned official representative of the company to appear at the project office within 15 days with valid evidence if there are any concrete reasons why the contract should not be terminated and action should not proceed.
If the submitted evidence is not found to be legitimate, reliable, or satisfactory as per the rules, the project will move forward with actions in line with the contract and public procurement law — including confiscation of the performance guarantee and deposit amount, as well as initiating the process to blacklist the company.
Under the Department of Irrigation, 25 projects — including the national pride projects Bheri-Babai and Sunkoshi-Marin Multipurpose Projects — have been identified as inactive or problematic. Among them, the process to terminate six contracts has already been initiated.