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Contract for Mechi corridor stalled for three years ends

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Kathmandu. The contract for upgrading the 9.5-km Belase-Golakharka Bhanjyang road under the Mechi Corridor (Kechana-Kanchenjunga Road) has been terminated.

The project was supposed to be completed by Poush 12, 2080 BS but only 47 percent progress was achieved despite repeated deadlines.

The Ilam Road Division under the Ministry of Infrastructure Development has terminated the contract agreement after less than three percent progress was made in the last seven months.

The Road Division, Ilam, has terminated 12 contracts since the financial year 2081/82 till date. In this regard, Rs 2.38 crore has been recovered from the contractor for the advancement and a letter has been sent to the concerned bank to forfeit the performance guarantee of Rs 6.79 crore.

In order to continue the construction of the road section where the contract agreement has been terminated, the new contract process will be forwarded after obtaining necessary resource consent and multi-year contract consent.

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