As the construction of the flyover at Gwarko, Lalitpur, is unlikely to be completed within the extended deadline, the construction company will face a penalty of Rs 88,000 per day.

Pradeep Bhandari, senior divisional engineer at the Quality Research and Development Center under the Department of Roads, stated that there will be no further extension and the construction company will have to pay a penalty of 0.05 percent of the contract amount for each day until the flyover is ready.

Ashish-Samanantar-Religare JV had signed a contract for the construction of the flyover for Rs 176 million. According to the agreement, the construction company was required to complete the flyover by February 23, 2024, but the deadline was extended by 10 months due to the Covid-19 pandemic.

The extended deadline will end on December 23, after which the construction company will have to pay a daily penalty of Rs 88,000, according to Bhandari.

It is now estimated that it will take another three months to finish the flyover. During this period, the construction company will incur a penalty of Rs 7.92 million. As of now, only 82 percent of the work has been completed.

Achyut Kharel, the director of Samanantar Construction Company, stated that the company had requested a three-month extension, but the Department of Roads rejected the request, resulting in the need to pay the penalty.

"Currently, 82 percent of the work has been completed. We had requested an extension with a commitment to complete the work in three months. However, since this contract is under the Engineering, Procurement, Construction (EPC) model, the government has stated that no extension will be granted," he said. "Since the deadline will not be extended, we will have to pay the penalty."

The EPC model contract includes a provision that no extensions can be granted except in special circumstances. Kharel stated that the delay in the work was due to the Department of Roads taking 18 months to approve the flyover’s design.