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Date: 18 Nov 2025
1.Top National Construction Headlines
- The government has terminated 25 long-stalled road construction contracts, spanning projects signed between fiscal years 2067/68 and 2079/80, which had little or no progress.
- The Kathmandu Metropolitan City (KMC) reopened the historic open area of Khulamanch (Open Stadium) in the heart of the city, following renovation and turf-installation.
2. Government & Policy Updates
- Under the directive of Kul Man Ghising, the Road Division Office Kathmandu invoked the Public Procurement Act to terminate the contracts of contractors whose clarifications on work progress were deemed unsatisfactory.
- The termination notice instructs the contracted firms to present themselves within 15 days for penalty procedures, including possible black-listing and guarantee confiscation.
3.Infrastructure Project Progress
- Roads & Highways: With the mass terminations, the roads previously under those contracts remain incomplete; the action is intended to clear the backlog of idle works.
- Urban Development: The Khulamanch site in Kathmandu has been upgraded: New Bermuda grass over ~14,600 m², a 4-metre wide walkway around the ground, 21 reused electric poles installed with sensors for lighting.
- Energy / Transmission Lines: Although this item falls slightly outside yesterday’s headlines, a 132 kV transmission line expansion in Karnali Province remains unfinished after 5½ years, signalling further infrastructure risk.
4.Market & Industry Insights
- The termination of private contracts due to non-performance suggests increasing regulatory pressure on contractors, which may lead to higher discipline in bidding and execution in the short term.
- Urban green/open space rehabilitation like Khulamanch reflect growing investments in public-space construction, with implications for landscaping, lighting, and city-infrastructure contractors.
5.Contractor & Company Updates
- Contractors involved in the 25 terminated projects are now facing legal and financial consequences: blacklisting, confiscation of performance/advance payment guarantees, and interest recovery.
- The KMC works at Khulamanch were carried out by a government‐infrastructure construction company under an MoU signed earlier; this signals increased public-sector contracting in urban redevelopment.
6.Problems, Risks & Challenges
- The large number of long-idle contracts shows a systemic challenge in project monitoring, contractor accountability, and contract enforcement.
- With terminations now happening, there is risk of project delays or costs escalating as new contractors may need to be mobilised or sites re-tendered.
- In urban spaces, such as Khulamanch, the challenge remains to maintain open public areas safe, accessible, and free from illegal occupancy and construction dumping
7.International Construction News
- While no major international contract announcements for Nepal’s construction industry emerged yesterday, the trend of global contractors entering Nepal or regional supply-chains impacted by regulation may escalate as Nepal raises its accountability standards.
8.Photo of the Day
Image: After-renovation view of Khulamanch lawn & walkway in Kathmandu
Caption: “Khulamanch open platform in Kathmandu reopened to the public after civil works and landscaping by KMC.”
9.Quote of the Day
“The clarifications were not convincing. Therefore, the contracts have been terminated as per the Public Procurement Law.” — Subodh Devkota, Chief, Road Division Office Kathmandu
10. Closing Line
Stay tuned with Nepal Construction Times for accurate, timely, and actionable updates across Nepal’s construction and infrastructure sectors.
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