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ECONOMY, Republica Watch

Construction of major road projects undertaken by Chinese companies faces inordinate delays

KATHMANDU, April 6: Chinese construction companies have been delaying the construction of significant and strategically important road projects in Nepal, with several issues arising in road projects contracted to Chinese firms.
By Hari Prasad Sharma

KATHMANDU, April 6: Chinese construction companies have been delaying the construction of significant and strategically important road projects in Nepal, with several issues arising in road projects contracted to Chinese firms. 


A prime example is the delayed progress in the second phase of the ring road expansion project in Kathmandu. Despite promises, the Chinese company has been hesitant to commence the road expansion from Kalanki to Maharajgunj, a project intended to be financed with Chinese grants.


For an extended period, the Chinese side has offered assurances of imminent work on the ring road expansion, yet visits to the project site have not been forthcoming. There appears to be a pattern of occupying projects without progressing to detailed study reports (DPRs). Although site clearance was completed a year ago, various excuses have been made for the delay. The DPR, promised by China's Henan Communications Planning and Design Institute Company within six months, remains incomplete even after a year.


In the project's second phase, the road was to be extended from Kalanki to Dhobi Kholapul (Chabahil). However, the Chinese company expressed interest only in extending it up to Maharajgunj, citing the need for land acquisition and demolition of structures between Maharajgunj and Chabahil. The government plans to expand this 11-kilometer section into eight lanes.


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Similarly, the expansion of the Narayanghat-Butwal road, part of the East-West Highway, by another Chinese firm has progressed slowly. Originally agreed to be completed in three and a half years, the project has seen multiple extensions, with just 50 percent of the work completed over five years. The China State Construction Engineer Corporation began this work on February 21, 2019, with 48.22 percent of the 65 km eastern section and 47 percent of the western section out of a total of 114 km completed. Project head Shashank Mishra cites the COVID-19 pandemic and material shortages as reasons for delays.


The Mugling-Pokhara road section expansion, contracted to China Communication Construction, is also behind schedule. The project commenced on April 12, 2021, with a three-and-a-half-year completion target, but only 50 percent of the work has been done so far, indicating a likely extension beyond the April 2024 deadline. While the Mugling-Jamune eastern section shows satisfactory progress with 40 percent completion, the Jamune-Pokhara western section lags significantly behind at only 10 percent.


Project head Shyam Kumar Yadav of the eastern section suggests a need for an extension to complete the 41 km road expansion. Delays in preparatory work in the western section have hampered expected progress, underscoring challenges in advancing these crucial infrastructure projects.


Likewise, the Kamala-Kanchanpur road extension project has experienced significant delays by the Chinese construction company. “Initially, China Railway-2 Engineering Group was contracted to complete the project within three years. To date, 45 percent of the construction work has been completed,” said Pradip Raj Shakya, the project head.


Shakya noted that completing the expansion work by December 2024 presents a challenge. "Issues such as obstructions from buildings and a lack of construction materials have impacted the expansion efforts," he added. "The goal is to finish the road expansion by December 2024."


The project spans a total of 87 km, with the first package covering 39 km from Kanchanpur to Kusaha in the east, and the second package extending 47 km from Balan to Kamala in the western section of Siraha.


The Rasuwagadhi-Syabrubesi road section extension, funded through Chinese loans, has also stalled for an extended period. The Chinese construction company commenced work two years ago, yet the construction and expansion of this section remain unfinished.


According to the Department of Roads, construction of the total 17 km road section is expected to resume shortly. “In addition to these, several other road projects managed by Chinese construction companies have faced similar delays, attributed to the two-year-long COVID-19 pandemic and the subsequent economic downturn in the country,” stated Dr Bijay Jaishi, deputy director general of the department.


“The prolonged impact of COVID-19, coupled with liquidity shortages and the economic recession, has adversely affected projects led by foreign entities. As a result, we are aiming to complete these projects by extending their deadlines,” he explained.


Experts argue that problems have emerged due to initiating the contract process without completing necessary preparatory work, such as land acquisition, tree removal, and the relocation of water pipes, electricity poles, and wires.

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