FNCCI urges govt to address contractors' demands

Kathmandu, Aug. 2

The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has said that the entire economy would be in trouble if the government did not listen to the demands of the contractors.

Expressing its concerns to the demands of the Federation of Contractors Associations of Nepal (FCAN) and its ongoing agitation, the FNCCI has urged the government not to delay in addressing the just demands of the construction entrepreneurs.

"The non-payment of the construction work even after the completion of the project has negative impacts on the financial system and the country's Gross Domestic Product. The government should be sensitive towards this," the business body said in a statement on Wednesday.

According to it, the halt of projects that are related to the development construction and livelihood of common people has resulted in poor capital expenditure while people are also deprived of facilities from those programmes. Last year's capital expenditure was just 61 per cent of the total allocation. This has sent a negative message at the international level as well, said the FNCCI.

Recession in construction, manufacturing and wholesale businesses has also impacted the business of banks and financial institutions cement and iron rods which also has negatively impacted the government revenue collection. According to recent estimates, manufacturing industries are running at about 30-35 per cent of their total capacity.

Meanwhile, the FCAN's agitation entered the fourth day on Wednesday. Construction entrepreneurs organised an hour-long sit-in-protest in front of the Prime Minister's Residence in Baluwatar.

Speaking on the occasion, FCAN's President, Rabi Singh, said that the protest was not their choice but an obligation.

He warned that if their demands were not met, the protest programmes would be intensified.

Their demands include immediate release of payment, deadline extension of all contracts, price adjustment of every period, and cancellation of the Insurance Directives 2078 and rule to conduct public construction through the consumer committees. 

Published in The Rising Nepal daily on 3 August 2023.