Ending Project Paralysis in Nepal

The government’s decision to cancel contracts worth over Rs 2 billion—projects that have shown little or no progress for years—was long overdue. With nearly 250 projects declared “sick,” some languishing for more than a decade and a half, it is only reasonable for the state to act against contractors who bag contracts but abandon worksites. Such actions send a necessary signal that the culture of impunity in public contracting cannot continue. But while termination may be justified in cases of blatant non-performance, the recent crackdown also risks treating only the symptoms while ignoring the deeper disease. The truth is that Nepal’s project delays rarely stem from contractors alone. The government must confront the uncomfortable fact that its own bureaucracy often plays an equally damaging—if not greater—role in turning projects sick.