Postal highway contract in Kanchanpur cancelled after prolonged delays

Kanchanpur: The contract for the construction of the Mohana River–Dokebazaar–Belauri–Beldandi–Daiji road section along the Postal Highway has been cancelled. The Planning Office, Dhangadhi under the Postal Highway Directorate of the Department of Roads issued a public notice on Thursday, formally announcing the termination of the agreement with Baba Hans–Siddhisai Joint Venture (JV), Kathmandu.

According to the office, the contract was terminated because the contractor failed to complete the work despite repeated reminders, did not fulfill commitments outlined in the agreement, and had left the construction site stalled for an extended period. The notice also states that the contractor’s work performance guarantee will be confiscated, and the remaining amount required to complete the project will be recovered as government dues.

On Kartik 14, the Planning Office had sought a 15-day explanation from the contractor asking why the contract should not be terminated. However, the notice explained that the response submitted was unsatisfactory. The contractor failed to provide an updated work schedule, a resource mobilization plan, or a credible commitment to resume and complete the work. The office also noted the absence of an authorized representative and a lack of readiness to restart construction.

The office has instructed the construction company to appear within 15 days to complete the measurement and financial settlement. If the contractor does not comply within the given timeframe, the office has warned it will conduct a unilateral measurement.

The contract for upgrading the road was signed in the fiscal year 2073/74. Out of approximately 20 kilometers, only 5 kilometers remain to be blacktopped, with total construction progress currently at around 82 percent.