Nepal has terminated twelve long-pending irrigation contracts that remained incomplete for years despite formal agreements being signed. The Department of Water Resources and Irrigation stated that the scrapped contracts fall under the former Janata Embankment Program Field Office No. 2 in Jaleshwar, Mahottari. Additionally, a 15-day public notice has already been issued to cancel six troubled contracts under the Babai Irrigation Project.
Minister for Energy, Water Resources and Irrigation, and also for Physical Infrastructure and Urban Development, Kulman Ghising, instructed authorities to end the trend of contractors taking on projects without completing them. The department said it advanced the termination process based on this directive.
The Janakpurdham-based Irrigation and Water Resources Management Project announced through a public notice that despite earlier warnings and deadline extensions, contractors failed to complete the work per the signed agreements. As a result, the contracts have been canceled according to the provisions of the agreement, and performance bonds have already been seized. A 15-day deadline has been given to complete measurement of completed work and evaluate the remaining tasks for legal procedures.
The canceled irrigation contracts had been awarded during fiscal years 2068/69, 2069/70, 2073/74 and 2074/75.
40 Road Contracts Now Facing Termination
Meanwhile, termination processes have begun for an additional 40 non-performing road and bridge contracts across the country. Road Division Offices in Tumlingtar, Ilam, Hetauda and Nepalgunj published notices on Sunday for halting these stalled projects. Tumlingtar accounts for 17 contracts, Ilam 12, Hetauda 7 and Nepalgunj 4.
Earlier, different road division offices had already initiated the process to cancel 68 problematic contracts. Minister Ghising has directed swift action against contractors who abandon projects and obstruct infrastructure development.
Authorities have cited repeated deadline extensions, incomplete and abandoned work sites and contractors’ long absence from project locations as serious breaches of contract. Contractors have been asked to present revised work schedules, credible resource deployment plans and justification for delays within 15 days.
Failure to respond or restart work within the given period will result in termination under Public Procurement Act provisions. This includes blacklisting contractors, seizing performance guarantees, advance payment securities, charging 10 percent interest on advances and recovering additional costs as government dues.
Nepal aims to restore accountability and ensure infrastructure projects no longer remain stalled for years at public expense.