Mechi Corridor Road Contract Terminated After Progress Stalls at 47%
The Ilam Road Division has terminated the contract for the 9.5-kilometer Belase–Golakharka Bhanjyang road section after construction progress remained at just 47% despite repeated deadline extensions.
The Ilam Road Division has terminated the construction contract for the Belase–Golakharka Bhanjyang section of the Mechi Corridor after the project failed to make satisfactory progress over an extended period. The 9.5-kilometer road section is an important part of the Mechi Corridor, which connects Ilam, Panchthar, and Taplejung districts. The construction agreement was signed on July 13, 2021, with the project initially scheduled for completion by January 13, 2024. However, despite repeated deadline extensions that provided a total of 63 months for construction, physical progress reached only 47%. According to the Ilam Road Division, the contract was terminated on October 28, 2026, after construction progress remained below 3% over the preceding seven months. The decision was taken after the contractor failed to deliver the expected results despite additional time to complete the project. Meanwhile, the Ilam Road Division has terminated 12 construction contracts since fiscal year 2024/25 due to delays and failure to comply with contractual obligations. As part of its action against underperforming contractors, the division has recovered Rs. 23.8 million in advance payments from terminated projects. It has also written to the concerned banks to confiscate performance guarantees worth Rs. 67.9 million. The division stated that other outstanding government dues will also be recovered in accordance with applicable laws and contractual provisions. The prolonged delay in the Belase–Golakharka Bhanjyang road project has raised concerns over connectivity and transportation for local residents and travelers. Attention is now focused on how the remaining construction work will proceed following the termination of the existing contract.