KATHMANDU, Dec 31: China Railway No. 2 Engineering Group has said that claims of a Rs 4 billion loss in the Kamala–Kanchanpur road project are incorrect.
The company issued the clarification after media reports stated that the project had incurred losses. It said it is currently working on several projects in Nepal, including the Kamala–Kanchanpur road, the Kakarbhitta–Laukahi road, and the Upper Tamor hydropower project.
“Some recent media reports have raised questions about the financial condition and progress of the Kamala–Kanchanpur road project. Public interest in such projects is natural, but several reports lack the necessary technical context,” the company said in a statement.
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The company said the final financial outcome can only be determined after the project is completed, adding that claims that the project has stalled or become cashless are misleading. It clarified that delays were caused not only by cash-flow issues but also by external factors.
“While the company acknowledges that there is financial pressure on the project, the claim circulating in the media about a loss of four billion rupees is not accurate. At this stage, any estimate of loss can only be speculative,” the statement said.
According to the company, physical progress of the project has reached around 79 percent, with 70 percent of blacktopping and 90 percent of bridge works completed.
Stating that the remaining works are relatively minor, the company said the project can be completed on time once existing issues are resolved. It also reiterated its commitment to regular coordination with suppliers and to clearing verified outstanding payments.
The company reaffirmed its full commitment to completing the project.
