Road Division Mahendranagar Cancels Contract with Nagarjun Construction for Mahakali Highway Upgrade Delay

Kathmandu. The Federal Road Supervision and Monitoring Office, Road Division Mahendranagar, Kanchanpur, under the Department of Roads, has canceled the contract agreement with the construction entrepreneur who caused delays in the upgradation work of the Mahakali Highway. The office, issuing a notice, informed that the contract agreement with Nagarjun Construction Pvt. Ltd. located in Balaju, Kathmandu, has been terminated. The contract agreement was made between the Road Division Mahendranagar and Nagarjun Construction for the restoration, slope stabilization, and blacktopping construction on the Mahakali Highway (from Chainage 16+000 to 58+000 of Kailali section). According to the Road Division Office, the construction entrepreneur was repeatedly requested in writing and verbally to complete the assigned work. As the work did not progress even after repeated reminders, the office published a notice regarding clarification in the Gorkhapatra Daily on March 23, 2082. Since no response was submitted to this clarification, the office decided to cancel the contract. The notice states that the contract agreement was terminated by a decision on June 18, 2083, in accordance with the provisions of Sub-section (2) and (7) of Section 59 of the Public Procurement Act, 2063, and GCC Clause 72 and 72.3 (b) of the contract agreement. The office has stated that the work will be evaluated according to Sub-section (3) and (8) of Section 59 of the Public Procurement Act, 2063, and the provisions of the agreement, following the cancellation of the agreement. Legal provisions exist to recover the established compensation or remaining amount from this process as government arrears. The Road Division Office has directed the construction entrepreneur to contact the office for financial settlement within 15 days of the publication of the notice.