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Nepal Govt terminates 22 stalled irrigation contracts worth Rs 14.23 billion

himalaya Diary News Service by himalaya Diary News Service
December 16, 2025
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Minister for Energy, Water Resources and Irrigation Kulman Ghising said the current government is working to restore public confidence by ensuring good governance
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The government has terminated 22 irrigation-related contracts that had remained stalled for years despite formal agreements, leaving projects incomplete and in a deteriorated state. The total value of the terminated contracts stands at Rs 14.23 billion.

According to the Department of Water Resources and Irrigation, the terminated contracts include six under the Babai Irrigation Project, 15 under the Irrigation and Water Resources Management Project in Janakpurdham, Dhanusha, and one under the Sunkoshi–Marin Diversion Project. In addition, a contract worth Rs 17.6 million under the Bheri Babai project has also been terminated.

Similarly, contracts worth Rs 131.7 million under the Janakpurdham office have been cancelled due to prolonged non-performance by contractors.

The decision follows a directive issued by Minister for Energy, Water Resources and Irrigation; Physical Infrastructure and Transport; and Urban Development, Kulman Ghising, who instructed subordinate agencies to take strict action against contractors who sign agreements but fail to execute works, leaving projects abandoned for years.

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