Road Division Terminates 10 Stalled Karnali Highway Contracts

The Road Division Office, Jumla has initiated the process of terminating 10 long-stalled contracts on the Karnali Highway in a single move.

The office has published a public notice and annulled the ten agreements signed with six construction companies that failed to execute work on time, leaving the projects abandoned.

According to Saurabh Kumar Singh, Information Officer at the Road Division Office, the contracts were canceled following a 15-day public notice.

The office had signed an agreement with Dhurva Construction Services of Surkhet in fiscal year 2021/22 for road safety management work on a section along the Manma–Nagma Jumla road in Kalikot district, which falls under the Karnali Highway corridor. The contract also included construction and protection of culverts, along with specific maintenance work on the road from Kudari (Jumla) to Kalikot. Singh said the contract has now been terminated because the company failed to carry out construction within the deadline, despite multiple extensions. Even after the extended deadlines lapsed, no work was completed.

Similarly, a contract for special maintenance work near Balighat in Kalikot and periodic maintenance from Khullale to Ghodenga under the Karnali Highway section was signed with Krishna Construction Services in fiscal year 2022/23. The Road Division Office has canceled that contract as well, citing the company's failure to complete work on time.

According to the office, the government had signed an agreement for specific maintenance work on the Talcha–Rara section of the Nagma–Gamgadi road section in Mugu district with Avinas Construction Services in 2022/23. Likewise, work on road improvement from Tum to Lamachaur, the Pratakki Rara route, and widening of Rara structures and footpaths was contracted with Binamra Construction Services of Surkhet in 2023/24. As the contractor made no progress despite repeated reminders, the division proceeded with contract termination.

The Road Division Office previously terminated four troubled contracts within its jurisdiction on the Karnali Highway—two in Kalikot, one on the Nagma–Gamgadi section in Mugu, and the road connecting Jumla-Dolpa to Manang-Mustang.

The office noted that despite repeated written and verbal requests to the contractors to complete the work, the companies failed to fulfill their obligations under the terms of the agreements. The contracts were annulled under Clause 59(2) of the Public Procurement Act, 2063 (2006 AD).

Earlier, Kulman Ghising, then Minister for Energy, Water Resources and Irrigation; Physical Infrastructure and Transport; and Urban Development, had directed subordinate agencies to terminate sick contracts to end the practice of extending contracts without executing work and leaving projects abandoned.