Infrastructure Office in Khotang Issues Show-Cause Notices to 19 Construction Firms for Project Delays

Khotang: The Office of Physical Infrastructure Development has directed 19 construction companies to submit a written explanation for failing to commence work two months after signing contracts.

The office issued the directive after the 19 firms failed to initiate work on 26 projects within the stipulated time, giving them seven days to provide a written justification.

The Infrastructure Development Office has sought explanations from Yunnan Construction Service Udayapur, Bishwashikhar Construction Service Udayapur, Arjun Point Engineer Developers Pvt Ltd Kathmandu, Right Brother RTD JV, Emo Builders Pvt Ltd, Shilanyas Engineering Consulting Pvt Ltd Dhading, Shantibhumi Construction Pvt Ltd Khotang, Ansubi-Nepal-Phulbari-Pingala JV, SR Construction Khotang, Nirma Construction and Suppliers Pvt Ltd Khotang, Ranasampang Construction Pvt Ltd Khotang, Bhishanhang Construction Pvt Ltd Bhojpur, Barahpokhari Construction and Suppliers Pvt Ltd Kathmandu, Pathibhara Construction Service Udayapur, Dhansuna Construction, B and B Construction Service Udayapur, Khokchilipa-Salme RTD JV, DB Construction Udayapur, and DG Construction Service Khotang.

Shantibhumi Construction Pvt Ltd Khotang has signed contracts for three projects, while Bishwashikhar Construction Service Udayapur, Pathibhara Construction Service Udayapur, B and B Construction Service Udayapur, DB Construction Udayapur, and Arjun Point Engineer Developers Pvt Ltd Kathmandu have each signed contracts for two projects.

Chief Engineer Binam Dahal stated that the firms were asked to submit a written explanation within seven days, including reasons for the delay. 'If work does not start on time, the rainy season begins. Construction work done towards the end of the fiscal year lacks quality,' he said. 'Failure to start on time leaves projects incomplete. There is a risk that the budget allocated for the projects will be frozen, hence the demand for a written response within seven days.'

The office has also warned the construction companies to start work immediately, noting that failure to complete projects causes hardship to local consumers and the public. The companies have been instructed to complete all construction work according to quality and quantity standards within the specified time under the direct supervision of technical staff deployed by the office.

Account Officer Sitaram Raut stated that if construction work is not started within the scheduled time, no unnecessary extensions will be granted, and bank guarantees will be forfeited in accordance with the law. 'In the first phase, we are demanding a written explanation. If the response is not satisfactory, the necessary action process will be initiated,' he said. 'Many construction companies tend to seek unnecessary extensions. We will directly forfeit the bank guarantees of companies that do not work.'

Under the Koshi Province Government, Ministry of Physical Infrastructure Development, and the Directorate of Infrastructure Development, 123 projects have been contracted in the district this year. Office Chief Dahal informed that, excluding the 26 projects in question, other projects are progressing rapidly.

The office reported that a budget of Rs 1 billion 94 lakh 75 thousand has been made available for one-year and multi-year projects this fiscal year. Chief Dahal also mentioned that eight projects approved by the provincial government could not be tendered due to land disputes.

Additionally, the office stated that 17 projects have been recommended to the provincial government for inclusion in multi-year plans due to low budget approval. It was also reported that 60 houses are being constructed at a cost of Rs 20 million under the Koshi Province Government's People's Housing Program for poor and marginalized families.