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Contracts to Be Terminated for Long-Delayed Infrastructure Projects

19th September 2025, Kathmandu

Nepal’s Government has announced a firm stance against contractors who have neglected or stalled development projects. Minister Kulman Ghising, who holds the portfolios for the Ministries of Energy, Water Resources and Irrigation, Physical Infrastructure and Transport, and Urban Development, has instructed officials to compile a list of all such incomplete or failed projects.

Contracts to Be Terminated 

Nepal’s Government has announced a firm stance against contractors who have neglected or stalled development projects. Minister Kulman Ghising, who holds the portfolios for the Ministries of Energy, Water Resources and Irrigation, Physical Infrastructure and Transport, and Urban Development, has instructed officials to compile a list of all such incomplete or failed projects. The objective is to terminate contracts and re-tender the projects to ensure that critical national initiatives are completed on time.

Zero Tolerance for Inaction

Minister Ghising’s directive is a strong response to widespread public frustration over delayed and abandoned infrastructure projects. He emphasized that the government will no longer tolerate contractors who leave projects in limbo, regardless of their political or personal connections. The Minister highlighted the immense financial losses and the deprivation of public benefits that result from such delays. He ordered that the list of incomplete projects be presented without delay so that contracts can be terminated and new bidding processes can begin immediately. Among the specific projects mentioned are the Sunkoshi Marin Multipurpose Project, which is a national pride irrigation initiative, and more than 100 bridge construction projects that are well past their deadlines.

Urgent Focus on the Federal Parliament Building

In a separate but equally critical directive, Minister Ghising has prioritized the completion of the new federal parliament building located within the Singha Durbar complex. The project, which has already seen five deadline extensions and is now at 86% physical progress, has a new deadline of Poush (mid-January 2026). The urgency is heightened by the damage caused to the old parliament building in Baneshwar during the recent “Gen Z” movement. Ghising stressed that the new parliament building is a highly sensitive project and that all parties, including project consultants and contractors, must work diligently to meet the deadline with no more excuses. The remaining tasks for the parliament building include:

Cracking Down on Corruption and Irregularities

Minister Ghising has also taken a firm stand against corruption and irregularities within all three ministries under his purview. He explicitly mentioned accusations of “budgets being sold off through collusion,” stating that such practices will no longer be tolerated. Ghising linked this anti-corruption drive directly to the “Gen Z” movement, noting that fighting corruption was a core agenda of the protests. He warned that anyone found misusing public funds, even a single rupee, will face strict consequences. This clear message is intended to restore public trust in government and ensure that public funds are used efficiently and transparently for their intended purpose: the timely and high-quality development of national infrastructure projects.

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