Railway contract cancellation: Contractors to move court

Kathmandu, September 10

After the government cancelled the procedure to distribute contracts for the construction of the Kakarbhitta-Inaruwa section of the proposed East-West Railway, a group of disgruntled contractors has planned to launch a legal battle against the decision.

Ravi Singh, the president of the Federation of the Contractors’ Associations of Nepal, says a case against the government will be filed at the court, demanding the decision to cancel the contract procedure revoked.

Claiming around 150 contractors have been affected by the decision, Singh says, “Why did they call for the tenders if it was not following the law? But, if it was legitimate, why did they cancel it after we already spent from Rs 50 million to Rs 70 million. We want the previous procedure to continue.”

If the government has concluded that the procedure was faulty, government officials involved in it should also be punished, he said.

“Otherwise, our hard work of two to three months and our money went to waste. No one should do such injustice.”

Following several media reports claiming irregularities in the contract distribution process, the Department of Railways had cancelled the procedure this Tuesday.

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