Kathmandu. The contract agreement for upgrading the 9.5 km Belase-Golakhark Bhanjyang road under the Mechi Corridor (Kechna-Kanchenjunga road) has been cancelled.

According to the Ministry of Infrastructure Development, the project costing Rs. 272.2 million should be completed by 29th January 2080, but only 47% of the material progress was made despite the extension of the deadline several times. After less than three percent progress in the last seven months, the contract agreement was canceled by the road division under the Ministry of Infrastructure Development.

The road division office at Ilam has terminated 12 contract agreements since the financial year 2081/82. During this process, Rs 2 crore 38 lakhs have been recovered from the builders and a letter has been sent to the concerned bank to confiscate the performance bond of Rs 6 crore 79 lakhs.

To continue the construction of the road section where the contract agreement has been terminated, the necessary resource agreement and multi-year contract agreement will be obtained and the new contract process will be started.