Postal Highway authority breaks 14-year stalled bridge contract in Jhapa

KATHMANDU: The government has terminated the long-delayed contract for the construction of the 723-meter Kankai bridge in Jhapa, which had remained stalled for 14 years under the Hulaki Highway project. Along with the contract termination, the contractor’s Rs 17.1 million performance guarantee has also been seized.

The Hulaki Highway Directorate’s Project Office in Itahari issued a public notice on Thursday announcing the cancellation of the contract with Pappu-Mahadev-Khimti JV. The JV had signed the design-and-build agreement on 31 Jestha 2068, with a deadline to complete the bridge by 30 Jestha 2072. The contract amount, including taxes, was Rs 340.9 million.

Despite five extensions over the years, the project’s progress has reached only 56 percent, prompting authorities to cancel the contract.

Contractor’s clarification rejected

On 31 Asoj, the project office had sought a 15-day explanation from the contractor asking why the contract should not be terminated. Project Chief Yuvraj Pokharel said the clarification submitted by the JV was unsatisfactory, leaving the office with no option but to terminate the agreement in line with the Public Procurement Act.

Officials said the contractor failed to submit a credible updated work schedule, a reliable plan for resource mobilization, or any concrete commitment to completing the remaining work. The JV’s representatives also did not appear for required discussions. The office stated that the contractor showed “no seriousness toward resuming or completing the work.”

More penalties ahead

As per procurement rules, the seized performance guarantee will be transferred to the government. Authorities have warned that any additional expenses required to complete the remaining work will be recovered as government dues, and the contractor has been recommended for blacklisting.

The project office has instructed the contractor to appear within 15 days for financial reconciliation and verification of completed work. If the JV fails to appear, the office will conduct the measurement on its own.

Local pressure and ministerial inspection

Minister for Energy, Water Resources and Irrigation, Physical Infrastructure and Transport, and Urban Development Kulman Ghising had inspected the bridge site on 26 Asoj, assuring residents that a decision on the stalled project would be taken soon. Locals had complained that the unfinished bridge had severely affected mobility, trade, daily life, and tourism prospects in the area.

During the inspection, Minister Ghising directed government bodies to terminate non-performing contracts and end the practice of contractors taking projects only to leave them abandoned for years.

Status of construction so far

According to the latest progress data:

Construction had continued until around 2076, but technical flaws were detected, leading to additional structural tests. While the contractor corrected some issues, the extension period expired in 2080, and a new extension request was not granted due to lack of progress and credibility.

Authorities are now preparing to move ahead with new procurement procedures to complete the long-stalled infrastructure project.