Government Cancels Numerous Contracts Amidst Project Delays and Legal Disputes
Summary
Government agencies have terminated dozens of road and bridge contracts as stalled projects pile up, triggering court disputes and renewed criticism of Nepal’s public procurement system. An expert says delays, weak project management, and unclear procurement rules are undermining development spending and the wider economy.
Key Points
- The Department of Roads has terminated dozens of bridge and road contracts, while contractors in some cases have gone to court after the cancellations.
- The article focuses on the Kankai bridge contract, which was reportedly stalled for 14 years before termination, and on more than 200 blacklisted contractors.
- Public procurement expert Rajendra Prasad Adhikari says both government agencies and contractors share responsibility for stalled projects, but government weaknesses are also a major factor.
- He argues Nepal needs a comprehensive overhaul of procurement laws, including clearer rules for federal, provincial, and local procurement systems.
