[ Bengia Ajum ]
ITANAGAR, 4 May: In a major decision, the Government of Arunachal Pradesh has decided to terminate the contract with M/s Woodhill-Shivam (JV), the contractor engaged for the construction of Package B of the four-lane highway from Papu Nallah to Nirjuli in the EPC mode.
The PWD Highway chief engineer issued the termination letter to the contractor on 29 April, citing various reasons. In the letter, the department alleged that, despite repeated directions, review meetings, and facilitation by the authority, the contractor failed to perform its contractual obligations.
M/S Woodhill-Shivam (JV) was appointed as the contractor on 08.12.2021 at a contract price of Rs 341,71,74,400. The completion date of the project was fixed on 06.12.2024. Under the terms of the contract agreement, the contractor was obligated to mobilise resources, execute the work with due diligence, achieve the prescribed project milestones promptly, and maintain the highway in a safe and traffic-worthy condition throughout the construction period.
The department in its termination letter alleged that the contractor failed to implement the contract agreement.
Further, the PWD (Highway) stated that, in the interest of ensuring timely completion of the project, multiple opportunities were given to the contractor to fix its faults, including the issuance of cure period notices and a notice of intention to terminate dated 13.02.2026. As of now, the physical progress of the project stands at only 51.37%.
“The project has suffered from systemic deficiencies, including a lack of planning, poor project management, inadequate resource deployment, and complete disregard of contractual commitments mentioned in the EPC contract agreement. These persistent shortcomings are solely attributable to the contractor and have materially impacted the progress, quality, and timely completion of the project. Despite repeated directions and opportunities extended by the authority, the contractor has failed to take corrective measures or demonstrate any meaningful improvement,” the PWD alleged.
Meanwhile, speaking to this daily, Highway Chief Engineer CS Choutang informed that the termination letter has been issued and the contractor has been directed to hand over the site, including all project facilities, equipment and encumbrance-free access, within a period of 15 days from the date of the termination notice, to the department.
“Soon, a joint assessment will be conducted,” he added. The CE said also that the department first sought permission from the Ministry of Road Transport and Highways before terminating the contract. “We made the decision to terminate after receiving permission from the ministry,” said Choutang.
Package B (Papu Nallah to Nirjuli) is 11.3 km long and includes a 3.950-km-long two-lane flyover from the Benjamin Hotel in Papu Nallah to Kangkarnallah in Naharlagun. Even after intervention from the high court based on a PIL, the project has failed to be completed on time. The PIL was filed by Vijay Jamoh and Doge Lona at the Itanagar Permanent Bench of the Gauhati High Court.
