GANDAKI PROVINCE PROJECTS DELAYED DUE TO CONTRACTOR ISSUES AND BUDGET UNCERTAINTY

Pokhara. The Sumusaghat motorable bridge over the Kaligandaki river, connecting Parbat and Baglung, had a construction agreement on November 19, 2020. The contract for this bridge, which was supposed to be completed within 30 months, was for 14 crore 18 lakh 1 thousand rupees. The physical progress of this bridge, for which 1 crore 42 lakh 74 thousand has been paid so far, is only 7.5 percent.

The contractor company has already received 2 crore 46 lakh 90 thousand as advance. As the construction work was left incomplete, the government attempted to confiscate the bank guarantee. However, as the bank did not provide the amount, the project has become completely stalled and at risk. There are 20 such projects in the provinces alone under the Ministry of Physical Infrastructure Development and Transport Management.

The total contract amount for these projects, agreed between 2019 and 2022, is 52 crore 9 lakh 2 thousand rupees. Most projects have a progress limited to 47 percent. The Auditor General's report mentions that even after extending the contract period multiple times, the work has not been completed, and in some projects, the contractor has not even started work at the site. The progress of the Budhi Khola road bridge in Tanahu has reached 39.77 percent.

The Begnas Lake-Anand Jyoti Secondary School road is stuck at 35.60 percent.

Dozens of projects are currently stalled because the Gandaki Province government initiated them and did not allocate the necessary budget. Due to allocating budget without detailed study and preparation and then withholding the budget after work starts, 54 projects across the province have become sick. The eighth annual report of the Auditor General has drawn the government's attention to the stalled projects. The commission's report points out that there is a risk of investment being lost if the projects, which have already seen billions invested, are not completed on time.

The Ministry of Energy, Water Resources and Irrigation has the largest number of stalled projects. There are 31 sick projects for irrigation and drinking water alone. While the contract cost for these projects was shown as 52 crore 9 lakh 2 thousand rupees, some have zero progress.

Similarly, 20 priority projects under the Ministry of Physical Infrastructure Development and Transport Management are on the sick list. The Auditor General's report shows that the contract amount for these projects has reached 1 Arba 31 crore 93 lakh 40 thousand rupees, and only 58 crore 3 lakh 7 thousand has been paid so far.

The government's ministries themselves admit that projects have not been completed even after their deadlines have passed. Two projects under the Ministry of Social Development, with a cost of 13 crore 4 lakh rupees, and one project under the Ministry of Agriculture, with a cost of 6 crore 92 lakh rupees, have also been incomplete for years.

The Auditor General has cited 5 reasons for the projects being stalled. Many projects are facing problems in land acquisition. The Auditor General's conclusion is that construction cannot proceed without resolving land compensation and disputes before awarding contracts. Some projects have flaws in their Detailed Project Report (DPR) itself.

Technical experts and construction companies complain that reports are prepared haphazardly, and do not match the geography during construction. Another major factor is budget uncertainty. Projects have become sick and stalled because they are announced without ensuring funding.

The problem in construction is also due to the inability of ministry and directorate officials to hold construction entrepreneurs accountable and repeatedly extending deadlines for non-performing contractors, thus protecting them. 'Projects should be selected and implemented only after completing preparatory tasks and ensuring budget,' the Auditor General has suggested.