FM asks contractors to heed project deadline

Kathmandu, Nov. 12

Finance Minister Bishnu Prasad Paudel has said that the contractors should work in a way that the projects are completed in time with reasonable cost.

"We can divide the construction projects in the country in two categories – preparation and implementation. I am positive about supporting this industry, but I also have certain expectations from you," he said in a meeting with a delegation of the Federation of Contractors Association of Nepal (FCAN) on Thursday at his office in Singha Durbar.

He said that the construction industry could be developed with the joint efforts of the government and construction entrepreneurs.

FM Paudel assured the construction entrepreneurs to find an appropriate solution to their demands.

He said that the government would study the status of the construction sector and design programmes to help them.

FCAN President Rabi Singh had presented the details of the COVID-19 impacts on the construction work and possible way out to the minister.

He said that the months-long lockdown had adversely impacted the development and construction work while there was uncertainty about resuming the work after the festival season. The entrepreneurs are facing liquidity crisis since there was no work but they had to pay the house rent, bank loan and salary to the staff.

"In order to make the sector resume the regular construction activities and revitalise the economic activities, the government should return the retention money paid to the government," he said.

Construction entrepreneurs lead about 5 per cent of the project cost with the government which remains idle in the state coffers. The entrepreneurs have suggested the government to return the collateral based on the bank guarantee.

Singh said that construction entrepreneurs were facing the shortage of about Rs. 65 billion which had affected all development works. Giving the retention money back to the entrepreneurs would help to mobilise the economy of the country, he suggested FM Paudel.

Likewise, the umbrella organisation of the contractors said that there were multiple health and safety protocols against the COVID-19 by the public agencies which had created confusion. It demanded to create a uniform policy for the safety from the pandemic and suggested to include some overhead cost for the implementation of such guidelines.

FCAN also demanded to reconsider about the deadline to complete the sick projects in the wake of the coronavirus.

The government in last December had given a year's deadline to the contractors to complete the sick construction projects but they just got three months to work and the lockdown and pandemic affected the progress. It suggested extending the deadline of all development and construction projects.

FCAN also demanded that the refinancing to contractor loan should be raised by 20 per cent considering the small and medium level construction entrepreneurs.

Similarly, it drew attention of FM Paudel to the restrictions to the crusher industries across the country and said that they should be allowed to run in close monitoring of the government.

Published in The Rising Nepal daily on 13 November 2020.