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Home Prime News

Irrigation Projects Begin Terminating Dormant Contracts After Years of Neglect

CEO Tab by CEO Tab
October 17, 2025
in Prime News
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Water released for testing canal of Mahakali Irrigation
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Contracts of irrigation projects that remained stalled for years without work despite agreements being signed have begun to be terminated. The Babai Irrigation Project has issued a public notice on Thursday announcing the termination of its contract with Aman Construction Company, Gulariya-5, signed around six years ago.

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According to the project, the contract with the company was signed in Fiscal Year 2077/78 (2020/21) for works including canal maintenance, command area protection, and building repairs. Out of six contracts awarded, four have shown zero progress, while one has achieved 30 percent and another 55 percent completion.

Minister for Energy, Water Resources, and Irrigation, Physical Infrastructure and Transport, and Urban Development, Kulman Ghising, had instructed subordinate agencies to terminate non-performing contracts that have left projects stranded and to end the trend of contractors failing to execute works after securing tenders.

The project stated that despite repeated public notices, the contractor failed to begin work as per the agreement and abandoned the project midway. Even after the contract period expired, the company showed no initiative to complete the assigned work.

The public notice also calls upon any concerned official of the company to appear at the project office within 15 days with valid proof if there are justifiable reasons for not terminating the contract. If the submitted evidence is found unsatisfactory or inconsistent with regulations, the performance guarantee and deposited security amount will be confiscated, and the company will be blacklisted in accordance with the provisions of the Public Procurement Act.

Under the Department of Irrigation, a total of 25 projects, including the national pride projects—Bheri Babai and Sunkoshi Marin Multipurpose Projects, have been classified as dormant (non-performing). Among these, the process of terminating six contracts has already been initiated.

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