Kathmandu, Nepal — December 16, 2025 — Nepal’s Ministry of Energy, Water Resources and Irrigation has canceled 22 stalled irrigation contracts after years of delays. The total value of the terminated agreements exceeds NPR 14.23 billion.
Minister Kulman Ghising directed government offices to end contracts where contractors failed to begin or complete work. His order aimed to stop the pattern of signing deals that leave public projects unfinished.
The canceled contracts include:
- Six from the Babai Irrigation Project
- Fifteen under the Janakpurdham-based Irrigation and Water Resource Management Project
- One from the Sunkoshi-Marin Diversion Project
The Department of Water Resources and Irrigation reported that out of 215 active contracts, 33 were flagged as problematic. Of those, 22 have now been terminated.
The largest canceled deal was part of the Sunkoshi-Marin Diversion Multipurpose Project, a national priority. The contract covered civil structures, headworks, a power station, gates, and hydromechanical equipment. The agreement with Patel-Raman JV, based in Janakpur-9, Dhanusha, was worth NPR 14.08 billion including taxes.
Officials also canceled contracts worth NPR 176 million under the Bheri-Babai project and NPR 1.317 billion under the Janakpurdham office.
Director General Mitra Baral confirmed that the department is continuing to review other stalled projects.
