The government has cautioned China State Construction Engineering Corporation Limited (CSCEC), the company which has been awarded the contract for the expansion of the Narayanghat-Butwal road segment, to complete the work within the stipulated time.

During a multi-stakeholders meeting held on Monday, Minister for Physical Infrastructure and Transport, Prakash Jwala said the government will not extend the deadline of the project any further. “They have to complete the remaining work on time or else, the government will discontinue the contract,” Jwala said.

Four years ago, the CSCEC was entrusted with the responsibility of expanding the road section under the East-West Highway. According to the initial contract agreement, the construction of this road section was to be completed by August 7, 2022, but as the construction of the road could not be completed within that period, the deadline was extended for a second time until mid-August, 2024.

As of now, the contractor is reported to have completed only 40 percent of the total work. Showing various pretexts, the company has been repeatedly delaying the construction work.

With the Chinese company dilly dallying in completing its work, the Asian Development Bank (ADB), which is overseeing the project, had earlier warned to terminate the contract if a notable physical progress is not made on time.

With the slow pace of work, passengers traveling on this road section have been experiencing much inconvenience. The Chinese contractor time and again has been complaining of inadequacy in cash flow behind the sluggish work.

Minister Jwala however said that there is no issue of releasing the necessary funds to the contractor. “The government has serious concern over the slow work progress of the road segment as the issues related to management of construction materials and relocation of electricity poles, along with the financial resources, have been settled,” he added.

Under this project, the work of upgrading 113 km of road between Narayanghat and Butwal is underway. The project aims to upgrade the 113 km Narayanghat-Butwal road section, with the eastern section covering 64.425 km and the western section 48.535 km. The project's cost was initially estimated to be Rs 16.99 billion but has been raised to Rs 17.02 billion due to variations.