Construction of the Mid-Hill Highway in Panchthar district has stopped after around 150 workers left the site due to unpaid wages. These workers had been working along a 51-kilometre stretch of the road under three separate contracts. They walked off the job two weeks ago after not receiving their pay for six months.
The contracts were awarded to two joint venture companies—Roshan Shivashakti JV and Santoshi Shivashakti JV. Both are operated by the same contractor, Surendra Pathak. The workers say they are owed nearly Rs10 million in total. Due to the lack of payment, construction has come to a complete halt, leaving the project in disarray.
The road project was supposed to be finished in 2021. The government extended the deadline three times, with the latest set to expire in December 2025. Despite these extensions, the work remains far behind schedule. Only 27 percent of the first section is complete, 14 percent of the second, and 49 percent of the third.
The Mid-Hill Highway Project Office in Phidim says the contractor has failed to bring enough equipment or workers to the site. This lack of resources has caused long delays and poor progress. The road, which connects Darimba in Yangwarak-4 to Chiwabhanjyang at the Nepal-India border, is in very poor condition.
Local communities in Yangwarak and nearby areas are the ones suffering the most. With the rainy season approaching, people are worried that food and daily supplies may not reach them. Parts of the road are damaged or impassable. Floods last year washed away many small bridges and culverts. These have not been repaired, making travel very difficult.
Although meetings have been held at both local and national levels to possibly cancel the contract, no decision has been made. There is disagreement between the Ministry of Finance and the Ministry of Physical Infrastructure over what to do next. Meanwhile, the contractor blames delays on past events like the Covid-19 pandemic, elections, and fuel costs. Project officials say these excuses are not valid, pointing out that the contractor only shows up with a small team when the rainy season begins.
The highway was divided into three parts, but all were awarded to different joint ventures linked to the same contractor. This has made accountability more difficult. Many say giving all contracts to one company was a big mistake.
Travelers say that what used to be a two-hour drive from Tharpu to Chyangthapu now takes up to a full day due to bad road conditions. Drivers report frequent accidents on the muddy roads. Injuries are common. Road conditions are also affecting security at the Nepal-India border. The Armed Police Force at Chiwabhanjyang is having trouble transporting food and supplies. Animal herders in the high hills are also struggling to get feed to their yaks and sheep.
Large stones and landslides have blocked many parts of the road between Chyangthapu and Chiwabhanjyang. Some areas are now impassable, even by foot. This has created major risks for trade and transport in the region.
The Panchthar section of the Mid-Hill Highway is 114 kilometers long. It is part of the full 1,879-kilometer national road that stretches across the country. While the stretch from the Tamor river to Darimba has been blacktopped, the remaining part from Darimba to Chiwabhanjyang remains largely untouched. Seventeen years have passed since the highway was announced, yet progress remains limited.
Residents and local leaders say the government has failed to act. They believe that unless real steps are taken soon, the project will continue to suffer. The Mid-Hill Highway, once a symbol of hope, is now a cause of frustration for thousands.