PID cancels contract on repair of roads

KATHMANDU, OCTOBER 23: The Project Implementation Directorate (PID) has terminated a contract reached with India-based CIPEL on the repair of roads in the Kathmandu Valley. Such roads were destroyed while executing the  Drinking Water Network Improvement  (DNI) packages under the Kathmandu Valley Drinking Water Improvement Project.

"Despite our repeated requests, the CIPEL failed to carry out the repairment task of roads within the set timeline. So, we have been forced to terminate the deal reached with it," reads a press release issued by the PID.

On October 3, 2016, the PID and CIPEL had inked the very deal, as per which, the latter was supposed to accomplish the road reinstatement work by September 2017. However, it actually completed only 10 percent of such work within the very period. 

  The CIPE turned a deaf ear to the repeated request of the PID to expedite its assigned task, thereby violating the agreement, according to the release. Sharada Prasad Adhikari, a construction entrepreneur, is the official Nepali representative of CIPEL.  

With the termination of the contract, the PID has formally asked the related banks to seize the performance security worth Rs 110 million deposited by Adhikari and also  return the mobilization advance payment worth Rs 100 million.

Some two months back, the PID had terminated the contract reached with China-based Salbon Water Services (Holding) Inc for construction water treatment centers in Lalitpur and Bhanktapur.