Gov to set up construction materials banks

Kathmandu, Dec. 17: In order to facilitate the quake-hit families in building their own houses and expedite the reconstruction process, the government is to set up construction material banks in the worst-affected districts.

To be established in the district headquarters, the construction material banks are expected to smooth the way for the supply of quality construction materials.

Chief executive officer of the National Reconstruction Authority (NRA) Sushil Gyawali said that such banks would be established in Nuwakot, Kavre and Makwanpur by next month in the first phase.

"We have held discussions with the Ministry of Supplies in connection with the construction banks in the quake-hit areas and come up with an idea to utilize the mechanism of Salt Trading Corporation (STC). People will be able to receive timely supply of materials required to build their houses," he said in an exclusive interview to The Rising Nepal.

The STC is jointly managed by the government and private shareholders.

The company provides services through 93 offices (22 branches and 71 liaison offices) across the country.

However, the reconstruction body clarified that the entire supply of construction materials wouldn't be managed by the government.

"The local government bodies will provide coupons, if necessary, to the households and dealers for the materials they need and the private sector dealers and traders will supply the materials. The government warehouse is just to ensure the supply if there were any disturbance. It will help us supply the required materials for the reconstruction works, control price in the market, ensure smooth supply and quality of the materials," said Gyawali.

He said that it was the private sector that ultimately produced and supplied the required construction materials and the government wanted to create mechanism to end the short supply, and black marketing, and facilitate the businesses and households.

According to him, a committee led by the Chief District Officer will be formed to monitor and regulate the supply of construction materials.

But, while taking such significant decision, the government did not consult with the private sector.

Chairman of the Urban Development Committee at the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) Om Rajbhandari said that no discussions were held with the private sector in this regard.

However, he said that the private sector would support the reconstruction works and urged the government to facilitate the producers and traders in supplying the quality materials.

According to Rajbhandari, some construction materials like cement would lose their quality if the storage facility was poor.

"The government can facilitate the private sector with tax exemption to a certain extent. It will motivate the businessmen for the timely supply of quality products," he remarked