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Gasa infrastructure development at standstill following contract termination

August 26, 2024
in Legal, Other Stories, Social
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The new Gasa town infrastructure development work has come to a halt after the district administration terminated the construction contract in December last year. According to the district administration, the private construction company that took up the construction work failed to demonstrate satisfactory progress at the site. The administration further stated that the contractor has also failed to renew the Performance Security, despite repeated reminders.

The new town development site at Kolikha remained idle for almost eight months now. Although the majority of the works such as the construction of the internal urban roads, service duct, stormwater drainage, communal septic tanks and footpaths have been completed at the site, work to lay the sewer network is left incomplete.

After the termination of the contract, the district administration sought legal support from the Office of the Attorney General, OAG in June this year on how to resolve the case.

They mentioned in their letter to the OAG that they tried to resolve the issue mutually but that the contractor did not cooperate. The letter also states that the contractor was given two months to settle the outstanding amount with the district administration, however, the firm not only failed to settle it but also did not respond to the district administration.

Meanwhile, according to the contractor, almost all the works have been completed at the site. He said only the layout work for laying sewerage pipes has been left incomplete due to some internal issues with the district administration and plot owners.

However, the district administration plans to proceed with the construction works as per the directive of the Office of the Attorney General.

Meanwhile, Gasa Dzongda Jigme Namgyel said the water supply project for the site is in the design phase. According to the initial plan, the project was supposed to be completed by April 2022 after it was started in October 2020.

Earlier, the district administration told BBS that work was delayed due to the COVID pandemic and harsh weather conditions in the district.

There are more than 50 commercial and residential plots allocated in the area. The new town occupies an area of 74 acres.

Changa Dorji, Gasa

Edited by Kipchu

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