Government Cancels 150 Contracts Amidst Infrastructure Project Delays
Summary
The government has canceled about 150 stalled construction contracts in six months and blacklisted more than 120 contractors, but experts warn the moves could delay projects further and hurt the economy. A major bridge project on the Kankai River in Jhapa has already been stalled for years, with re-tendering still pending after cancellation.
Key Points
- The Department of Roads says it has canceled around 150 stalled contracts in the past six months and may cancel another 150 if work does not resume.
- The Public Procurement Monitoring Office has blacklisted more than 120 construction entrepreneurs and companies since last March.
- Government officials say the cancellations are meant to end impunity and speed up delayed development projects, while contractors and experts call the move harmful and risky.
- A stalled bridge over the Kankai River on the Hulaki Highway in Jhapa illustrates how contract cancellation can still leave projects stuck for years.
