Government to End Contracts for Key Roads as Chinese Contractor Fails to Deliver

The government is planning to terminate its contract with the Chinese construction company responsible for the construction of the Narayangadh-Butwal and Pokhara-Muglin roads. This decision comes after the government’s warnings to the company to improve its working style went unheeded.

The government has reached this decision due to the significantly low physical progress of the construction, despite the fact that the projects should have been completed by now, and the contracts have been in place for an extended period.

The government is in the process of terminating the contract for the expansion of both the western section of the Pokhara-Muglin road and the eastern section of the Narayangadh-Butwal road. These road contracts were originally awarded to Chinese companies.

The Muglin-Pokhara road extension project is divided into two sections. As of now, there has been 31.5 percent progress in the eastern section from Ambukhaireni to Jamune and only 8 percent progress in the western section from Jamune to Pokhara.

In the Gaindakot-Daunne road stretch, which is part of the Butwal-Narayangarh section along the East-West Highway, only 41.17 percent physical progress has been achieved.

The contract for the road widening project was signed approximately five years ago, with the condition that construction would be completed within three years and the contractor would be responsible for road maintenance. However, the road expansion project has not progressed as expected, despite multiple extensions to the deadline.

The 115-km road project from the Narayani River in Gaindakot to Butwal was divided into two sections when the contract for expansion was signed. The Chinese State Engineering Corporation was awarded the contract for this expansion project, with section ‘A’ covering a 64.42-km road from Gaindakot to Daunne, and section ‘B’ comprising a 48.58-km road from Daunne to Butwal.

This road expansion project is funded with an 85 percent loan assurance from the Asian Development Bank (ADB). The design includes a six-lane road in settlement areas, a four-lane road in forested areas, and a three-lane road in the mountainous area of Daunne.

The government has contributed 15 percent of the total project costs, as per the information provided.