Biratnagar: The Planning, Monitoring, and Evaluation Division of the Ministry of Physical Infrastructure and Transport (MoPI&T) in Koshi Province has recommended the blacklisting of Chinese company Chongqing International Construction Corporation (CICO) and its Nepali partner Kanchharam Construction (KC). The recommendation, made on June 18, 2024, follows severe delays and substandard construction work on critical road projects.

CICO and KC were contracted to construct the Korsane-Kerabari-Singhdev (KKS) and Laxmimarga-Dengihat-Babiyabirta-Amahi (LDBA) road sections in Morang District under the Rural Connectivity Improvement Project (RCIP), funded by the Asian Development Bank. The contract, valued at NPR 70 Crore, was supposed to be completed in two years. However, a ground inspection by Senior Engineer Shaligram Devkota revealed that only 54 percent of the work has been completed after five years. Additionally, the quality of the construction was found to be dissatisfactory and substandard, contrary to the agreement.

This is not the first time Chinese companies have faced scrutiny in Nepal. In December 2023, similar complaints were reported against China State Construction Engineering Corp. Ltd (CSCE) regarding the Siddhababa Tunnel (ST) project in Butwal.

Chinese companies involved in various projects in Nepal, particularly in road construction, have been criticized for project delays and escalating costs. Allegations have also surfaced about Chinese officials associated with these projects being involved in illegal activities such as gold and narcotic smuggling, with some reportedly linked to China’s intelligence agency, the Ministry of State Security (MSS).

Efforts by local Nepali authorities to take action against such companies often face resistance from the Chinese Embassy in Kathmandu, which allegedly pressures the Nepali government to allow these companies to continue their operations.

This issue is not unique to Nepal. Similar concerns have been raised in other countries, notably Sri Lanka and several African nations, where many Chinese companies have been banned for poor quality work and cost escalations. Critics accuse the current political leadership in Nepal of compromising national interests for financial gains from Chinese firms.

The potential for such issues to increase is a significant concern as Nepal considers signing the Belt and Road Initiative (BRI) Implementation Plan, which could lead to more projects involving Chinese companies.

The recommendation to blacklist CICO and KC highlights the need for stringent oversight and accountability in infrastructure projects to ensure quality and timely completion, safeguarding both the environment and the interests of the local population.