Road infrastructure projects along the Karnali Highway are facing prolonged delays and widespread contract failures, leaving key sections in poor condition and disrupting daily travel for local communities. Years after repeated repair efforts and public investment, large stretches of the highway remain incomplete, with contractors failing to deliver despite extensions, advance payments and official warnings.

The situation has forced authorities to cancel dozens of stalled contracts in recent months, exposing persistent issues in public procurement and project execution along one of Nepal’s most difficult highway corridors.

In the province, the Road Division Office in Jumla has cancelled 16 long-stalled contracts along the Karnali Highway after construction companies repeatedly failed to complete work despite extensions, advance payments and official warnings.

One of the major cancellations involves MK/Amit JV, which was awarded a contract on February 9, 2020, to repair blacktopped sections of the highway in Kalikot district. The company had agreed to complete the work within one year at a cost of Rs 33.8 million and had already received an advance payment of Rs 8.1 million. However, even after two deadline extensions, the project failed to reach 20 percent completion, prompting the authorities to terminate the agreement.

A second contract awarded to the same company on April 1, 2021, for maintenance works on the Dahikhola–Serighat section also collapsed. The firm, which had secured Rs 32 million for the project, failed to complete even 30 percent of the work despite an extension, leading to another cancellation.

The Road Division Office said it has terminated 16 contracts that had remained inactive for years along the Karnali Highway, including projects dating back to the 2017-18 fiscal year.

According to Information Officer Saurav Kumar Singh, repeated written notices failed to push contractors to resume work, forcing the office to act under public procurement laws.

“We cancelled the contracts after contractors showed no interest in completing the work despite repeated reminders,” Singh said. “We have now terminated 16 projects, including 12 in Kalikot, three in Jumla and one in Mugu.”

Officials say a pattern of contractors securing public works but failing to deliver has become persistent in the region. The office has begun procedures to blacklist several firms, seize bank guarantees and deposits, and recover advance payments with 10 percent interest.

Among the cancelled contracts are four held by MK/Amit JV and three by Kalikot-based Karnali Construction and Engineering. Other terminated projects include a Bailey bridge construction contract along the Seri-Pantadi road in Kalikot awarded in fiscal year 2017-18 to Himali Construction Service of Jumla, road maintenance works on the Nagma-Jumla section awarded to Narayan Construction Service, and the Talcha–Rara road section contract held by Nanjila & Akanksha/Majdur JV in the fiscal year 2021-22.

Additional cancellations include works awarded in fiscal year 2022-23 to Himanshu Construction Service for the Dahikhola–Khulalu road, Malika Construction for maintenance of the Nagma–Khalanga section in 2020, and Chhayachhara Construction Service of Humla for the Kalikot–Malkot road project.

The list also includes Singh/Kalika Construction Service for the Ghattegad–Gela–Padamghat upgrading project, Malika Builders of Surkhet for safety barrier installation along the Khulalu–Nagma section, and Laxmi Construction Service for maintenance work between Tallo Dungeshwor and Khalanga.

The prolonged delays have left residents struggling with poor road conditions on one of Nepal’s most important but difficult highway corridors. Much of the blacktopped surface laid with World Bank support in 2015 has deteriorated, turning sections of the road into mud during rainfall and dust tracks during dry weather.

Local officials say travel has become increasingly difficult, with long traffic jams due to single-lane stretches and frequent landslides triggered by fragile terrain.

“The condition of the Karnali Highway is extremely difficult,” said Kamal Bahadur Shahi, mayor of Khandachakra Municipality in Kalikot. “Most sections are still single-lane, causing hours of traffic congestion. The terrain is weak, and landslides remain a constant risk.”

Residents say the combination of poor maintenance, stalled contracts and natural hazards has made travel along the highway slow, unpredictable and often unsafe.