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Two Chinese construction companies suspended over fast-track contracts

Two Chinese companies responsible for the construction of a tunnel on the Kathmandu-Terai-Madhes Expressway (Fast Track) have been suspended for not doing fast and quality work. Among them are China State Construction Engineering Corporation and Poly Changda Engineering Company Limited.

Fast Track consultant Yoshin Engineering Corporation-Korea Expressway Corporation and Pyongyang Engineering Consultant JV sent a letter to both companies on May 23 informing them of the suspension. The letter did not say how long the suspension lasted.

Construction work on both packages has stalled after the suspension. China State was working on the first package and Polly Changda on the second package. The contract was signed with both the companies on 31st Baisakh, 2078 BS so that the construction could be completed within 3 years. However, one year after the agreement was signed, no progress has been made in the construction.

It is mentioned in the letter sent by the consultant that the construction company has not shown any interest in improving the performance even after informing the construction company in oral, written and technical meetings. In the letter sent by the consultant to the construction company, it is mentioned from the joint survey of the employer and the builder that the work as per the agreement is not satisfactory.

The reason given by the consultant for the suspension was that the construction company did not have skilled tunnel engineers, poor workmanship, neglect of design and procedure, equipment and proper construction materials were not provided and operated.

In the first package of the fast track, China State has won a contract worth Rs 21.61 billion for the construction of a 3.355 km tunnel from Chokredanda to Dhedre. In the second package, Polly Chanda has won a contract worth Rs 28.53 billion to build a tunnel from Dhedre to Lendanda. Its distance is 3.03 km.