DHANGADHI: The Asian Development Bank (ADB)-funded project to develop a modern city in Far-Western Province has hit a snag following government action against skiving construction companies.

The ADB-funded Regional Urban Development Project had started construction of a systematic road network in four local levels of the Far-West -- Dhangadhi Sub-Metropolitan City, Godawari Municipality in Kailali, and Bhimdutta Municipality and Shuklaphanta Municipality in Kanchanpur district.

However, the project has come to a standstill due to a dispute between the donor and the government.

Following the government decision to take action against construction companies who have delayed construction projects or have the history of subpar work, the Public Procurement Monitoring Office has started preparation to prosecute the contractor company, Raman JV, technical proposal of which were selected for the road construction in all four local levels. No financial proposal has been submitted for any projects.

The Office has moved forward with the process to put Raman JV in the blacklist. 

“The construction company cannot take part in the public procurement process as the case against the company is still under consideration," the Office said. However, ADB has stressed that technical proposal submitted by Raman JV must be approved as the decision to blacklist the company is yet to be taken.

Process following the submission of technical proposal has been stopped owing to dispute between the two bodies, informed Engineer Shyam Chandra Budhathoki, source person at Project Implementation Unit.

“The process to move ahead with the construction is not in our hands,” engineer Budhathoki said while adding, “it will remain uncertain until the finalisation of the proceeding against Raman JV by the Public Procurement Monitoring Office.”

A proposal had been called last fiscal by the donor to construct 10.25-km road in Dhangadhi, 15.56-km in Godavari and 5-km in Shuklaphanta including the process to blacktop Dhangadi Traffic Chauraha-Kailali Nala road section, Sahid Gate-Campus road section, Gulma-Church road, Malpot road and Divot-Pipal Chautara road section. Raman JV had been selected for the same.

The project has allocated the budget of Rs 1.1 billion in Dhangadhi, Rs 770.3 million in Godawari and Rs 311.7 million in Shuklaphata.

Similarly, the technical proposal by Raman JV for the construction of road in Bhimdutta Municipality of Kanchanpur under the same project has already been evaluated and is awaiting the submission of financial proposal.

(Translated by Sandeep Sen, Edited by Priyanka Adhikari)