Minister Ghising says termination of non-performing road contracts is unavoidable

December 30, Kathmandu: Minister for Energy, Water Resources and Irrigation, Physical Infrastructure and Transport, and Urban Development, Kulman Ghising, has said the government is compelled to terminate long-stalled and non-performing road construction contracts to ensure accountability and timely delivery of projects.

Speaking at a programme organized in the capital on Tuesday to mark the 23rd anniversary of the Road Board Nepal, Minister Ghising said contract termination sends a clear message that failure to work will invite action. He noted that the practice of bidding unrealistically low amounts to secure contracts must be discouraged, and that delayed construction has caused unnecessary hardship to the public. According to him, the Department of Roads has so far terminated 40 sick contracts.

Clarifying that no contracts were cancelled arbitrarily, the minister said contractors who complete projects on time are being encouraged. He emphasized that since development budgets are largely spent through contractors, their role in national development is significant, and their capacity and efficiency should be enhanced.

Minister Ghising also observed that although federal, provincial and local governments are involved in road construction and maintenance, the public often blames the federal government due to confusion over jurisdiction. He directed authorities to carry out road maintenance more proactively.

The Road Board Nepal reiterated its plan to expand the “user pays” principle by collecting road usage fees to sustainably manage maintenance and conservation costs. Currently, electronic toll collection is underway at Basantapur in Bhairahawa under the Bhairahawa–Bhumahi road section.