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Govt extending contracts of over 2,000 troubled development projects

Road constructions on the way

Kathmandu, February 5

The federal government has begun extending the term of contracts signed with various construction companies for around 2,000 infrastructure development projects. A recent amendment to the Public Procurement Regulations allows the government to extend the term of ‘troubled’ projects by February 26.

Concerned government agencies themselves can extend the term of such projects if the projects have spent less than 25 per cent of the total contract period after the expiry of the contract. Secretaries of the concerned ministries have been assigned to decide the fate of other projects.

It has been learned that the secretaries, hence, are busy studying the documents. An official at the Department of Roads says it is sending around 500 files to the Transport Secretary for the decisions.

Though some contractors have claimed that such an extension can help the government increase its amount of the development expenditure, some officials are sceptical about it.

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