The postal highway, one of Nepal’s national pride projects, is still not finished even after 16 years. The project was supposed to be completed in eight years, but the work has moved very slowly.
The government has now started canceling contracts with construction companies that have failed to complete their work. The postal highway directorate has begun the process to end five contracts that are in very poor condition. On Ashoj 31, the office asked companies like Pappu Construction and Mahadev Khimti to submit explanations and new work plans within 15 days.
If the companies do not respond properly or fail to restart work, their contracts will be canceled. They will also be blacklisted, their performance bonds will be seized, and they will have to pay 10% interest on advance payments. The government will recover the remaining costs as public dues.
The case of the 14-year unfinished bridge
One of the biggest delays is the Kankai bridge, whose contract was given to Pappu Construction and Mahadev Khimti 14 years ago. The bridge is still incomplete. Mahadev Khimti is linked to contractor federation president Ravi Singh, while Pappu Construction is owned by former MP Hari Narayan Rauniyar.
Other contracts are also being canceled for delays. The Banainya and Kaliya Khola bridges in Saptari have not been completed, leading to action against Lama–Bamti JV. Similarly, work on the Mechi–Ragadh drainage and Fattepur–Katiya road was delayed, so contracts with Kanchharam–Bamti–Dev and Shayer JV have been terminated. Kanchharam JV is linked to former energy minister Purna Bahadur Tamang.
How much progress so far?
So far, only 72.75% of the total work has been completed. Out of 1,875 kilometers of road, 1,351 kilometers have been blacktopped. Another 244 kilometers are still under construction, and 228 kilometers have not been contracted yet. Out of 300 planned bridges, 151 are finished, 59 are under construction, and 89 have not started.
The cost of the project has also increased. It was first estimated at Rs 47.24 billion but has now reached Rs 101.63 billion. About Rs 70.28 billion has already been spent.
Why so many delays?
Officials say there are many reasons for the delay. Parts of the postal highway pass through national parks and forest areas, where getting approval for construction has been difficult. In Chitwan National Park, the route marking and environmental studies have faced delays. Some areas in Kapilvastu and Dang are still waiting for environmental clearance due to pending approval from the President Chure Conservation Committee.
The project has also suffered from a lack of budget. Even though it is a national priority, the funding is not enough. In the current fiscal year, only Rs 3.46 billion has been allocated. This year’s goal is to blacktop 76 kilometers of road and build 13 bridges.
The postal highway range from Bhadrapur in the east to Daiji in Kanchanpur. It was expected to boost transport, trade, and development in the southern plains. But after 16 years, the project remains incomplete, with rising costs and constant delays continuing to frustrate both the government and the public.
