Government scraps East-West railway construction contract

 

Kathmandu: The government has terminated the contract for the construction of Kakarvitta-Inaruwa section of the East-West Railway.

The Department of Railways issued a notice regarding this today. The government had announced the construction of the 106 km railway without finalizing the issue of compensation which has to be given to the locals.

The government was facing criticism for announcing tender for the project with clauses that allowed only 18 companies to take part in the bidding process.

As the tender bid evaluation committee suggested that land assessment and site clearance is not possible for now, the department cancelled the agreement.

The government faced strong criticism for signing the agreement worth Rs 33.34 billion without proper study.