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ECONOMY

Govt slaps Pappu Construction cash fine of Rs 2 billion over delayed construction

The government has stepped up efforts to take stern legal action against the contractor responsible for leaving the construction of the Kankai River bridge in Jhapa stalled for 14 years.
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By REPUBLICA

KATHMANDU, Sept. 13: The government has stepped up efforts to take stern legal action against the contractor responsible for leaving the construction of the Kankai River bridge in Jhapa stalled for 14 years.



Issuing a public notice, the Postal Highway Directorate's Project Office in Itahari (Sunsari) has asked Pappu/Mahadev JV (Kathmandu) to deposit around Rs 2 billion in outstanding government dues within 35 days. The contractor has been accused of failing to execute the construction work, cause delays and breach contract clauses.


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The office had previously terminated the contract for the bridge—originally estimated to cost Rs 340 million—after the project was left abandoned without implementation for an extended period. According to the notice, Pappu-Mahadev JV needs to deposit Rs 1.991 billion into the government treasury.


The office has clarified that if the amount is not deposited within the stipulated timeframe, the entire cost of completing the remaining bridge construction will be recovered from the contractor's assets as government arrears, in accordance with prevailing laws.


Pappu/Mahadev JV failed to construct the 723 meter stretch Kankai bridge in 14 years of signing the contract. The bridge connects Jhapa Rural Municipality-2 and Gaurigunj Rural Municipality-1.


The government authority through the notice has also directed Gauri Parbati/Dev and Sayar/Bhumi JV (Biratnagar) and Shrestha Construction Company (Hetauda) to deposit cash fines in the state treasury.  


 

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