KATHMANDU: Twelve non-performing contracts towards irrigation have been terminated, the Department of Water Resources and Irrigation has stated.

These ‘sick’ contracts had been in limbo for years due to failure on the part of the contractors to carry out the project works under contract agreements.

The Department stated that 12 sick contracts under the previous People’s Embankment Programme, Field Office No. 2, Jaleshwar, Mahottari, have been annulled.

According to the Department, a 15-day public notice was published on October 16 for the termination of six contracts of ‘sick’ projects under the Babai Irrigation Project.

The Minister for Energy, Water Resources and Irrigation, Physical Infrastructure, Transport and Urban Development, Kulman Ghising, had directed the subordinate bodies to terminate the contracts to put to an end the trend of taking contracts but not completing work within deadline and leaving projects unfinished, in order to eliminate unhealthy contracting.

The Department said that the process of terminating the contract has been proceeded ahead accordingly.

The Irrigation and Water Resources Management Project Office, Janakpurdham has, through a public notice on Sunday, stated that the contract was terminated as the construction contractor left the construction incomplete without completing the work as per the agreement, although the Project had issued notices on May 29, 2024 and on July 16, 2024 with the intention to terminate the contract.

The Office said that despite its repeated requests and public notices, the contractor has paid no attention to carrying out the project works, and as per the provisions mentioned in the contract, the process of confiscating the work completion guarantee has already been initiated.

Additionally, the Office has informed the side concerned that the work done so far should be measured and the remaining works evaluated within 15 days in accordance with the provisions of the Public Procurement Act to proceed with other necessary actions.

The cancelled contracts were signed in the fiscal years 2011/12, 2012/13, 2016/17, and 2017/18.

Process begun to terminate 40 more road contracts

Meanwhile, the Department of Roads has initiated the process to terminate 40 more non-performing contracts for projects, which have been left unfinished for years despite signing agreements for road and bridge construction.

The Road Division Offices of Tumlingtar, Ilam, Hetauda and Nepalgunj have, on Sunday, initiated the process to terminate 40 non-performing contracts that are in limbo and under their jurisdiction.