The long-delayed upgrade of the Karnali Highway has continued to languish, with authorities scrapping 10 contracts on March 25 after years of stalled progress and repeated non-compliance by contractors.
Shankarmali Nirman Sewa secured a contract worth nearly Rs 50 million to upgrade a 20-kilometre stretch of the Karnali Highway from Bhulbhule to Talcha in Mugu in financial year (FY) 2017-18. The firm was responsible for road widening, constructing retaining walls, and gravelling. Despite three extensions, the company barely completed half the work. Following repeated reminders that went unheeded, the Road Division Office seized the company’s performance security and terminated the contract on March 25.
Similarly, in FY 2018–19, Man Shahi Nirman Sewa, Kalikot, signed a contract worth nearly Rs 10 million for blacktopping repairs on two sections of the highway—Dahikhola–Nagma and Serighat. After three extensions and no physical progress, this contract was also terminated on March 25.
The Road Division Office, Jumla, cancelled a total of ten long-stalled contracts along the Karnali Highway on March 25. Furthermore, Saurabh Kumar Singh, information officer at the office, said that public notices have been issued to four other construction firms, asking them to clarify “why their contracts should not be terminated and action initiated”. According to Singh, the office has recommended that these companies be placed on the blacklist. These contracts date back to FY 2017–18. “The contractors ignored repeated instructions to carry out work as per agreement, their deposits will be confiscated,” he said. “We will now proceed with fresh tenders.”
Locals have suffered for years due to the stalled upgrade works. Kamal Bahadur Shahi, mayor of Khandachakra Municipality in Kalikot, said that most of the blacktopped road constructed in 2015 with World Bank assistance of around Rs 1 billion has deteriorated. Travellers are forced to endure difficult journeys on roads that turn muddy during rainfall and dusty in dry weather. He added that the predominance of single-lane sections leads to hours-long traffic congestion, while the fragile terrain poses constant landslide risks.
Information Officer Singh said the most critical risks are seen along the Dahikhola–Manma–Nagma–Jumla section, where multiple upgrade works remain incomplete. Terminated contracts include the Khullale–Ghodenga section awarded to Krishna Nirman Sewa in FY 2022–23, the Nagma–Gamgadhi section under Abinash Nirman Sewa in FY 2022–23, the Mugu section handled by Binamra Nirman Sewa in FY 2022–23, and the Kudari–Kalikot section assigned to Dhurba Nirman Sewa in FY 2021–22.
Shrawan Kumar Mahatara, acting chief of the division, said contracts worth nearly Rs 160 million have been scrapped, including two in Kalikot, one on the Nagma–Gamgadhi road section, and others on the road linking Jumla and Dolpa to Manang–Mustang. He added that works under eight contracts worth nearly Rs 200 million are currently underway, while three projects on the Dahikhola–Nagma section have been completed in the current fiscal year.
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