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ECONOMY

Govt orders five contractors to pay Rs 1.07 billion after contract termination, issues 35-day notice

According to the Pushpalal Mid-Hill Highway Project Office, the payments are to be recovered from contractors who left several infrastructure works unfinished.
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By REPUBLICA

KATHMANDU, April 6: The government has directed five construction companies whose contracts for development projects were terminated to pay Rs 1.07 billion required to complete the remaining work. A public notice issued on Monday has given the companies 35 days to settle the amount.



According to the Pushpalal Mid-Hill Highway Project Office, the payments are to be recovered from contractors who left several infrastructure works unfinished.


The office stated that YP Bikas & Brothers/Aatreya JV, which abandoned the construction of the Sokhu Khola bridge along the Khurkot–Ghurmi road section, has to pay Rs 60.4 million. Similarly, Lohani/Aatreya JV, which left the road construction between chainage 55,000 and 59,000 on the same section incomplete, owes Rs 164.5 million.


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Likewise, Nagarjun/Aashika JV, responsible for the Jaremane Khola bridge under the Dolalghat–Bahune Pati road section, has an outstanding liability of Rs 41.6 million, the office said.


The project office also stated that Bharat Construction/Mainachuli/Siddhisai JV has yet to pay Rs 671.2 million. The contract was terminated after the company failed to asphalt a road segment under the Bhojpur–Diktel road section, and the government began the process of recovering the cost required to complete the remaining work.


Similarly, Siruwa Construction Company, which abandoned the Padkhu Khola bridge under the same Bhojpur–Diktel road section, still has to pay Rs 69.4 million to the government.


The office said the companies have been formally notified to deposit the amount within 35 days, failing which further legal measures will be taken to recover the dues.


 

See more on: contract termination
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