PM Prachanda rebukes contractors over sluggish, substandard construction works

Kathmandu, Mar. 12

Prime Minister Pushpa Kamal Dahal Prachanda has criticised contractors' tendency of accepting the contract of construction work but not completing it on time, not delivering the expected quality, and getting the deadline extended and adding to the cost.

He said that government is also aware of the public complaints about the poor performance or inaction by the contractors.

"We have seen public posting 'contractor lost' on social media after the contractor of the project of their concern fled from the site leaving the project incomplete. It shows the picture of the construction sector in the country," he said while addressing the inaugural session of the 24^th General Assembly of the Federation of Contractors Associations of Nepal (FCAN) in the Capital on Sunday.

He demanded that the construction of public infrastructure like national highways, hydroelectricity projects, water supply and other projects should be completed on time with the defined quality while remaining within the estimated budget.

Prime Minister Prachanda inquired the construction entrepreneurs whether they have an action plan or policy to improve their shortcoming in terms of quality of construction and building of reliable infrastructure in time.

Stating that all public construction should be developed at the specified cost and at the same period if we have to achieve the goal of national development, the Prime Minister also suggested the FCAN to formulate an action plan to address the lacking in the part of the contractors while pledging government commitment to improve the governance system in the area of public construction and help the private sector in resolving their problems.

He pledged to ensure participation of private sector entrepreneurs while amending the laws and policies related to construction and contract. Probably the laws and policies on public procurement and construction are the most frequently amended ones but despite that neither the private sector is satisfied nor the public construction and development work is moving ahead smoothly.

Government is seriously seeking the long-term solutions for the cost and time overrun of the projects due to the crisis like COVID-19 and Russia-Ukraine war, said PM Prachanda.

Meanwhile, he maintained that the economic condition of the country is not so sound but there is not a situation to panic since the nation is gradually moving ahead on the path of growth.

Pledging to increase capital expenditure from the government, he said that the government is serious about addressing the challenges faced by contractors due to lack of money supply in order to instill hope in the business and economy.

Speaking at the same programme, Deputy Prime Minister and Minister of Physical Infrastructure and Transport, Narayan Kaji Shrestha, said that he will move forward together with the businesspersons but not be in 'complicity' with them.

Stating that he is aware of the problems of the construction entrepreneurs, he said that policy initiatives are being taken to solve the problems. DPM Shrestha said that reducing the trade deficit while increasing the capital expenditure is the main demand of the situation.

Similarly, Ravi Singh, President of FCAN, drawing the government's attention to the demands of construction professionals, said that there is no option but to go on strike if the legitimate demands are not met.

He urged the Prime Minister to facilitate in the payment of the contractors undertaking capital projects in the country.

Speaking on the occasion, Jip Chhiring Lama, former lawmaker and past president of FCAN, suggested that the project chiefs should not be transferred before the completion of the project.

According to him, 90 per cent contractors in the country are troubled by various problems created by recent crises.

Likewise, President of Confederation of Nepalese Industries, Vishnu Kumar Agrawal, said that cement and steel production has gone down by about 70 per cent while business of heavy equipment has remained just about 20 per cent of usual times.

Boosting capital expenditure will help to address many problems troubling the economy in recent times, he said.

According to business persons, obstruction in the construction work not only impacts the contractors but also the domestic industries in the areas of cement, steel, electricity and other construction materials. 

Published in The Rising Nepal daily on 13 March 2023.