Govt to address contractors’ demands

Kathmandu, Feb. 8

Finance Minister Bishnu Prasad Paudel has said that the government would commence discussion with the concerned stakeholders to address the demands of the contractors.

In a meeting with a delegation of the Federation of Contractors Association of Nepal (FCAN) at his Singha Durbar office on Sunday, he said that some of their demands were related to the Finance Ministry while others needed a Cabinet decision.

The FCAN had drawn the attention of Minister Paudel to amend the Public Procurement Bylaws.

It demanded that the government should extend the deadline to complete the projects under construction by six months.

The government had extended the deadline by six months earlier, but the contractors said that the construction materials were in short supply due to the COVID-19 pandemic.

FCAN president Rabi Singh reiterated that the entrepreneurs were 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 as deposit," said Singh.

The construction companies deposit about 5 per cent of the project cost with the government. Stating that the money was remaining idle in the state coffers, the contractors demanded refund of the money on the basis of bank guarantee.

As per FCAN, the return of the deposited money could increase the liquidity situation in the industry and contractors can resume work at various projects where construction is halted. They said they faced a shortage of about Rs. 65 billion.

In that case, construction would be expedited, projects would be completed in time, construction industry would be revitalized and country’s economy would see a growth, said Singh.

Published in The Rising Nepal daily on 9 February 2021.