Friday, February 1, 2019

No mechanism in place to ensure quality work of infrastructure projects


Kathmandu, Jan. 30:
The country that has more than thousand sick infrastructure projects does not have an institutional mechanism to check and ensure the quality of development work.

Unlike the practice in other countries, the government agencies responsible for the infrastructure development either do not have a capable engineering department or lack proper mechanism and human resources.

"Some agencies have deliberately weakened their engineering department so that the corruption can go unabated," said a public procurement expert in the condition of anonymity.

According to him, the standard monitoring system has almost collapsed in most of the government institutions, including the Public Procurement Monitoring Office (PPMO) that has the responsibility to ensure good governance in the public entity's procurement system.

In a report published recently, the Commission for the Investigation of Abuse of Authority (CIAA) concluded that at least 1,032 infrastructure development projects – such as roads, hydroelectricity, irrigation, water supply, urban structures, airports and local infrastructure – have been chronic and experiencing time and cost overrun.

Experts say that most of the contracts are awarded in a hurry without proper feasibility study and implementation action plan.

"The development projects are planned and executed on an ad hoc basis while some of them are the tool to fulfill the vested interest of certain politician or a minister. There have been instances that after awarding the contract, it was known that certain construction material were not available," said the procurement expert.

Spokesperson at Nepal Electricity Authority Prabal Adhikari is also of the view that the projects go on the floor without sufficient study and preparation.

"Most of the infrastructure projects are facing problem due to the inability to address the social and environmental issues in the beginning. Social issues like land acquisition and environment impact assessment (EIA) should be concluded before awarding the contract since most of the projects are facing glitches in these two aspects," he said.

Adhikari said that the provision in the Public Procurement Act to award the tender to the lowest bidders did not ensure quality in development works.

The lowest bidders take the payment of the initial 20 per cent of the contract amount and never start the work.

The CIAA study concluded that the contractors had siphoned off about Rs. 24 billion as 20 per cent initial mobilisation cost. Of the 1,848 tender agreements amounting to Rs. 118 billion were not completed in their pre-set time period while about 56 per cent contracts were extended and have remained as sick projects.

NEA Spokesperson Adhikari claimed that the electricity monopoly has monitoring mechanisms at its headquarters and consultants are also mobilised to monitor the quality of the construction in the fields.

A Ministry of Physical Infrastructure and Transport (MoPIT) source said that the implementing agencies like the Department of Roads (DoR) need a system overhaul.

The DoR is implementing 906 projects and 242 of them are sick, said the anti-graft body. Similarly, the Department of Urban Development and Building Construction has 442 chronic projects and the Department of Water Resources and Irrigation has 235 incomplete projects.

"There are no effective monitoring mechanisms at the implementing agencies. Quality control tools are rarely used," said the MoPIT.

According to the rules, if a contractor stops working for more than 30 consecutive days and does not follow the action plan approved by the managing agency, it will be a ‘fundamental breach of the contract’ and the work should be expedited when there is poor progress.
But very few contractors have been punished for delaying the projects.


Published in The Rising Nepal daily on 31 January 2019. 

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