Suppliers for the Narayanghat-Butwal Road expansion project have launched protests claiming dues unpaid for months.

On Tuesday, suppliers gathered with placards outside the project’s western office, calling for immediate settlement of unpaid dues. According to Ramu Adhikari, vice-president of the Nepal Crusher and Mining Industries Association, unpaid dues total over Rs1 billion, including Rs800 million owed to 13 suppliers of materials like stone, gravel, and sand, Rs150 million to subcontractors, and Rs60 million for transport services.

The main contractor, China State Construction Engineering Corporation Ltd, has not issued payments since March, placing suppliers in financial distress. Suppliers have warned of escalating their protests if payments are not received within 15 days. They claim having made frequent visits to the project office for payments, to no avail.

The contractor has also halted work on the road, citing monsoon-related delays. This ongoing delay in construction, despite three extensions of the deadline, has worsened travel conditions along the Narayanghat-Butwal stretch.

Per the original contract, the project was due for completion by July 2022 after beginning in March 2019. However, issues including Covid-19 and material shortages delayed progress, and the contractor failed to mobilise adequate manpower.

An initial extension was granted until July 2023, followed by a second extension to July 2024. With the third extension now in effect, the completion date is set for July 2025.