Hulaki Highway Stalled After 16 Years Amid Contract Cancellations and Government Inaction

Kathmandu. The Hulaki Highway, considered the lifeline of development for the Terai-Madhes region, has been left incomplete for 16 years. The future of this national pride project is uncertain due to contract cancellations and government apathy.

Started in 2066/077, the project aimed to construct 1,857 kilometers of road and 250 bridges connecting Kechana in Jhapa in the east to Dodhara Chandani in Kanchanpur in the west. It remains uncertain when the work on this project will be completed. The delay in completing this highway has caused significant hardship for the residents of the Terai region.

Some contracts have been canceled due to the negligence of construction entrepreneurs, and because the construction was not completed on time, the project cost has doubled. The initial cost estimate was NPR 47.24 billion, but due to the delay in construction, the estimated cost has increased to NPR 101.63 billion.

It is estimated that this cost may increase further. The deadline has been extended multiple times as the construction was not completed within the stipulated time. The deadline for the completion of this project has been last extended until 2083/084, but looking at the progress so far, the possibility of completing the work within this timeframe is slim.

The physical progress of this highway reached 75 percent by the end of Poush month.

Furthermore, out of the total cost of NPR 101.63 billion for this highway, NPR 72.93 billion and 11 lakh rupees have been spent by the end of Poush month. 1380.7 kilometers of road have been blacktopped, and 153 bridges have been constructed under this highway.

For the current fiscal year 2082/83, the government had allocated a net budget of NPR 3.66 billion and 42 lakh rupees. Out of this, only NPR 1.38 billion and 11 lakh rupees have been spent. In percentage terms, this is only 37.69 percent of the total allocation spent.

After remaining incomplete for a long time, the government has canceled the contracts of several construction entrepreneurs for the Hulaki Highway due to negligence, turning them into sick contracts. Following the agitation led by the 'Jangi Andolan' on Bhadra 23/24 last year, the interim government formed subsequently issued a notice asking why sick contracts for long-stalled projects should not be terminated. Among these, notices were issued to terminate 14 contracts for this highway, and 5 have been terminated. The Hulaki Highway Directorate stated that 14 projects were sick: 5 under the Hulaki Highway Planning Office Itahari, 1 under the Planning Office Kapilvastu, 2 under the Planning Office Dhangadhi, and 6 under the Planning Office Janakpur. The total cost of the five terminated contracts amounts to NPR 2.34 billion and 44 lakh.

The largest among the terminated contracts was for the Kankai Bridge in Jhapa, with a cost of NPR 340.9 million. The agreement for the construction of a concrete bridge over the Kankai River was signed on Jestha 31, 2068 BS. The construction was supposed to be completed by Jestha 29, 2072 BS according to the agreement, but the contract was canceled after 14 years passed without completion. This bridge had achieved 65 percent physical progress even after 5 deadline extensions. The last extended deadline expired in Asar 2080 BS. Since work completely halted from Baishakh, the process for contract termination was initiated.

Similarly, the contract for the bridge under construction over Patari Khola along the Maadi-Thori road section in Chitwan has also been terminated. The Planning Office Birgunj of the Hulaki Highway Directorate issued a public notice on Mangsir 12 last year, terminating the contract because the contractor company became unreachable after abandoning the work. Its total cost was NPR 223.1 million. This project started on Magh 1, 2079 BS, and was supposed to be completed by Chaitra 4, 2082 BS.

The contract for the construction of the 6-kilometer Ratuwa-Keshalia road section in Morang has also been canceled. Its total cost was NPR 839.9 million. This project started on Kartik 23, 2079 BS, and the final deadline was until Jestha end, 2082 BS. However, the contract was terminated as it could not be completed within that period.

The contract for the construction of the Mohana River-Dokebazar-Belauri-Beladangi-Daigi road section in Kanchanpur has also been terminated. The cost of this road project was NPR 413.3 million. It started on फागुन 12, 2073 BS, with a deadline until Kartik 25, 2082 BS, but the contract was terminated as it could not be completed within that period.

The contract for the Inaruwa-Kaptangunj road section of the Hulaki Highway in Sunsari, with a total cost of NPR 527 million, has also been canceled. This road started on Shrawan 16, 2081 BS, with a deadline to be completed by Asar 30, 2083 BS. However, the contract was terminated before the deadline expired. The Department of Roads stated that the main reason for the termination of all these contracts was the negligence and delay in work by the construction entrepreneurs. Contracts were canceled for failing to adhere to the conditions mentioned in the contract agreement, not completing the work on time, and delaying construction activities.

The project claims that a major reason for the delay in the construction of the Hulaki Highway is government weakness. The project directorate stated that the highway work has been stalled because the government failed to provide timely budget allocations and delayed taking action against construction entrepreneurs. The contract management for road sections and bridges falling within the Chitwan National Park area, the jungle area bordering Kapilvastu and Dang districts, and the jungle area bordering Banke and Dang districts has not been finalized. This is also causing construction delays, according to the project.

The construction of various remaining sections of 10 roads built with the grant assistance of the Indian government is yet to be completed. The project directorate stated that work could not proceed at a fast pace because the government failed to allocate sufficient budget.

This problem seen in the construction of the Hulaki Highway raises serious questions about the implementation of national pride projects. The government needs to prioritize this project and complete it on time. The Hulaki Highway is a crucial infrastructure for the development of the Terai-Madhes region. Its timely completion would greatly contribute to the economic, social, and cultural development of this region. However, the construction delays are obstructing the pace of development in this area.