Crackdown on non-performing contractors: 150 road contracts scrapped, 6 local ones to follow

The government has tightened action against construction entrepreneurs who fail to work. The Department of Roads says it has cancelled around 150 non-performing contract agreements in the last six months, with about 300 road projects on the problem list.

Calling it an effort to speed up projects stalled for years, the government has intensified contract terminations. The Public Procurement Monitoring Office under the Office of the Prime Minister and Council of Ministers has blacklisted more than 120 construction entrepreneurs and companies since last Chait.

Public procurement experts, however, have warned that one-sided action could halt capital spending and push the economy toward recession.

Meanwhile, Minister for Infrastructure Development Sunil Lamsal reviewed projects of the Department of Local Infrastructure Development on Wednesday. He decided to proceed with terminating the agreements for 6 of the department's 19 non-performing contracts that show no prospect of progress.

According to Minister Lamsal, 6 projects have been completed and work on 5 more has moved forward following the ministry's monitoring. He has directed that the action plan be revised to speed up project implementation.