Kathmandu: The government has terminated 12 stalled irrigation contracts that had been left incomplete for years despite formal agreements.
These contracts were under the former People’s Embankment Programme Field Office No. 2, Jaleshwar, Mahottari. Similarly, a 15-day public notice has already been published on October 16 to terminate six contracts under the Babai Irrigation Project.
Minister for Energy, Water Resources and Irrigation, Physical Infrastructure and Transport, and Urban Development Kulman Ghising had instructed subordinate offices to cancel non-performing contracts and end the tendency of contractors abandoning projects after signing agreements. The termination process was initiated accordingly.
The Irrigation and Water Resources Management Project, Janakpur, stated through a public notice on Sunday that although notices of intent to terminate were issued on 29 May 2024 and 16 July 2024, the contractors failed to complete the work as per the agreements.
The project said repeated requests and public notices were ignored, prompting the cancellation of contracts and the forfeiture of performance guarantees as per the contract provisions. It further stated that within 15 days, the completed work would be measured, and the remaining work evaluated for further legal action under public procurement laws. The cancelled contracts had been awarded in fiscal years 2011/12, 2012/13, 2016/17, and 2017/18.
The government has also begun the process to terminate 40 additional stalled road and bridge construction contracts that were left incomplete for years after signing agreements. Under the Department of Roads, the Division Offices in Tumlingtar, Ilam, Hetauda, and Nepalgunj have initiated this process.
According to public notices issued on Sunday, Tumlingtar has 17, Ilam 12, Hetauda 7, and Nepalgunj 4 stalled contracts under review for termination. Earlier, various road division offices had already started proceedings to cancel 68 such non-performing contracts.
Minister Kulman Ghising had already directed relevant agencies to end the trend of contractors taking projects but failing to carry out the work.
The ministry noted that even after repeated deadline extensions, the contractors showed no interest in completing the projects within the stipulated period, leaving construction incomplete and abandoned. Many contractors have not been physically present on-site for long periods, violating fundamental terms of the contracts.
Despite multiple written and verbal requests, the contractors showed no concern for completing their assigned projects.
The public notice has called on contractors to submit within 15 days a revised work schedule, a reliable resource mobilization plan, a commitment to complete the work, or any valid justification with proof as to why the contract should not be terminated.
If contractors fail to show readiness to resume work within the given time, the offices concerned will terminate the contracts, blacklist the firms, confiscate performance guarantees, deposits, and advances, charge 10 percent interest on advances, and recover the remaining work cost as government dues, in line with public procurement laws.
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