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Kathmandu, Nov 17: The Kathmandu Road Division Office has cancelled 25 non-performing contracts.

These contracts, signed between fiscal years 2067/68 and 2079/80, had remained incomplete for years. The office cancelled them on Monday after no work was carried out.

Before taking action, the office had asked the 25 concerned contractors on Kartik 11 to explain why their contracts should not be terminated. Office chief Subodh Devkota said the explanations submitted were not satisfactory, leading to the cancellations under provisions of the Public Procurement Act.

According to Devkota, the contracts will be formally terminated and the contractors will be blacklisted. Performance guarantees, deposits, advance payment guarantees and interest amounting to 10 percent of the advance will be seized. The government will also recover the expenses required to complete the remaining work as government dues. Contractors have been instructed to appear at the office within 15 days.

Energy, Water Resources and Irrigation Minister, who also oversees physical infrastructure and urban development, Kulman Ghising, had instructed subordinate agencies to act against contractors who take projects but leave them unfinished. Following that directive, offices under the Department of Roads began the process of cancelling stalled contracts.

People’s News Monitoring Service