82 contracts cancelled in seven months as government seeks funds to restart stalled projects

The Ministry of Physical Infrastructure and Transport has said it has cancelled about 82 contract agreements with construction companies that failed to work, over the past seven months. This is nearly 48 percent of the roughly 172 problematic contracts identified by the ministry.

The ministry attributes the delays to contractors' procrastination, policy inconsistency and weak government regulation. It is preparing to scrap contracts for many roads and bridge projects that have remained incomplete for years, including the Mechi Corridor, and to move the work forward through a fresh process.

According to Department of Roads Director-General Bijay Jaisi, discussions are under way with the Ministry of Finance on allocating funds before new bids are invited. He said the cost of projects that could earlier have been completed on a smaller budget will rise considerably once they are re-tendered.

Officials said the contracts will subsequently be awarded through the regular process as per law. Many have expressed concern that this will further delay construction work that has already been slow for a long time.