Government Prepares Detailed Report on 578 Contracts with Analysis and Solutions

The government has conducted a comprehensive analysis of 578 stalled and distressed contract projects across the country and prepared a report outlining solutions. According to this report, 250 projects are in debt, 122 are abandoned, 153 are delayed in construction, and 15 contracts have been terminated. To accelerate capital expenditure and expedite project completion, the government has amended the Public Procurement Act and simplified the transfer process.

Kathmandu, 24 Shrawan — A detailed report analyzing 578 contracts with proposed solutions has been prepared. Although this report has not been publicly released, it has been included in the quarterly report by the Office of the Prime Minister and Council of Ministers.

The report states, ‘A task force led by the Secretary of the Ministry of Physical Infrastructure and Transport was formed to analyze long-stalled, distressed, and delayed projects. To date, a comprehensive analysis of 578 contracts with proposed solutions has been submitted.’

Following the study of the 578 contracts, improvements such as contract system reform, the introduction of a fast-track mechanism, amendments to the Public Procurement Act, and arrangements to advance projects through the Government Infrastructure Construction Company have been implemented, according to the Office of the Prime Minister and Council of Ministers.

The report indicates that among these, 250 projects are indebted, 122 are stalled, and 153 face construction delays. Additionally, 15 contracts have been terminated, and 38 projects fall under various other conditions.

The report not only identifies the problems but also proposes solutions and suggests measures to prevent similar issues in the future. Based on these findings, the government has initiated several actions, including an amendment to Rule 131 of the Financial Procedures and Financial Accountability Rules 2077 to accelerate and simplify capital expenditure. It now allows the Secretary to make decisions regarding capital budget transfers, streamlining and expediting the process as recommended in the report.

The Public Procurement Act of 2006 has also been amended legally to allow the Government Infrastructure Construction Company to directly implement projects that fail to secure contracts even after two attempts or where the process fails.

According to the quarterly report by the Government of Nepal, several projects have been monitored on-site, and reports have been prepared accordingly. It notes, ‘On-site monitoring and reporting were carried out for projects including the Kali Gandaki Corridor (Gaindakot section) and the Narayangadh–Butwal western section under the Ministry of Physical Infrastructure and Transport.’

Further, the Prime Minister’s Office has listed the reopening of the Hetauda Textile Industry as an achievement. The report states, ‘On 27th Jestha 2083, in the special presence of the Prime Minister’s Policy, Administration, and Governance Advisor, discussion and decision regarding the reopening of the Hetauda Textile Industry were made, followed by an on-site survey on 16th Jestha 2083.’

Last Friday, the Prime Minister shared the status of government industry reforms on social media, including the commencement of trial production for reopening the Hetauda Textile Industry.

According to the Prime Minister, sales and profits of Nepal Pharmaceuticals Limited have increased, income and occupancy of Nepal Airlines Corporation have grown, and production and transactions of the Dairy Development Corporation and Singha Durbar Hospital have improved. These points from the Prime Minister’s Office quarterly report were also posted by the Prime Minister on social media.

Although referred to as a quarterly report, most activities documented pertain to work conducted during the months of Baisakh, Jestha, and Asar. During this period, the Hello Government electronic grievance management portal resolved 16,272 registered complaints. Including older and new grievances, a total of 32,667 complaints have been addressed.

The Prime Minister’s Office is in the process of preparing the Sixth National Action Plan on human rights and has conducted consultation and interaction programs in Sudurpashchim, Karnali, Lumbini, and Koshi provinces to gather feedback for the draft.

The report also includes the second national strategy and action plan for implementing the United Nations Convention against Corruption, which has been approved by the Council of Ministers.

The report details the structure, nature, duties, powers, and staff of the Office of the Prime Minister and Council of Ministers. It also highlights major initiatives undertaken by the office.

According to the report, from Baisakh 1 to the end of Asar 2083, 21 meetings of the Council of Ministers were held, resulting in 384 decisions. The preparation of the detailed analysis report on 578 contracts with proposed solutions is included among these initiatives.