A total of 234 Chronic contracts for road and bridge construction, which had been left incomplete for years after agreements were signed, are set to be terminated. These contracts fall under the Road Division Offices, overseen by the Federal Road Supervision and Monitoring Office of the Department of Roads, including projects on the Postal Highway and the Mid-Hill Highway.

Under the Federal Road Supervision and Monitoring Offices, there are stalled contracts: 38 in Damak, 75 in Kathmandu, 39 in Pokhara, 49 in Surkhet, 16 on the Postal Highway, and 17 on the Mid-Hill Highway. A committee will be formed to investigate both former and current responsible officials who, by failing to carry out their duties on behalf of the projects, contributed to making these contracts dysfunctional.

On Saturday, Minister for Energy, Water Resources and Irrigation, Physical Infrastructure and Transport, and Urban Development, Kulman Ghising, held discussions with secretaries and joint secretaries of the Physical Infrastructure Ministry, the Director General of the Department of Roads, heads of the Federal Road Supervision and Monitoring Offices, and project chiefs, among others. He stated that there is no alternative to terminating Chronic contracts in order to end the tendency of contractors taking projects but failing to carry out the work.

Minister Ghising mentioned that terminating Chronic contracts contracts would also put an end to the practice of bidding at lower prices, taking mobilization advances, investing those funds elsewhere, and then failing to carry out the contracted work.

He said, “In road projects, contracts are being taken but the work is not being carried out. The state spends billions every year on road construction, but citizens have not been able to benefit from it. Contract management appears almost nonexistent, and because those involved in making contracts dysfunctional have not been punished, impunity has increased. In some cases, contracts became stalled because employees failed to make timely decisions. Such employees must also be investigated.”

He further said, “Whoever the contractors involved in stalled contracts may be, terminate the contracts independently and confidently without falling under anyone’s influence. This step will be an important milestone in establishing good governance, and I will provide you with full protection.”

Contracts worth over 20 million rupees, where the construction period has already been extended for more than 100 percent of the original timeline but progress remains below 50 percent, are classified as stalled contracts.

Similarly, contracts worth over 20 million rupees, where the deadline has been extended by more than 200 percent but construction progress is still below 80 percent, and contracts where the time has been extended by more than 400 percent but progress remains below 95 percent, are also considered stalled contracts.

Minister Ghising stated that any officials involved in irregularities, delays, bribery, or causing unnecessary hardship to service recipients in the work carried out by the ministry and its subordinate offices will be immediately punished. He also instructed employees to report immediately if anyone causes undue hardship by exploiting his name.