Friday, January 6, 2023

Government vows to address problems plaguing construction industry

Kathmandu, Jan. 5

Deputy Prime Minister and Minister for Physical Infrastructure and Transport, Narayan Kaji Shrestha, has expressed his commitment to address the problems troubling the construction industry.

In a meeting with a delegation of the Federation of Contractors Associations of Nepal (FCAN) on Thursday at his office at Singha Durbar, DPM Shrestha pledged to take necessary steps to solve the problems faced by the construction industry and entrepreneurs.

The delegation was led by FCAN President, Rabi Singh, and included Vice-president, Balkrishna Thapa, General Secretary, Roshan Dahal, Deputy General Secretary, Shiva Hari Ghimire, Co-treasurer, Santosh Shah and members of the federation.

Assuring the necessary facilitation from the government in creating better environment for the construction entrepreneurs, DPM Shrestha suggested them to move ahead by correcting their shortcomings. He pointed out that the goal of prosperity would not be achieved without the development and expansion of physical infrastructure so there is a need for a greater collaboration and cooperation between the government and construction industry to ensure timely development of infrastructure.

"The government is ready to move forward with the construction industry but there wouldn't be any compromise in terms of quality development. The government is committed to maintaining the reputation of the construction industry," said DPM Shrestha, who is also the chairman of the Construction Business Development Council.

He made it clear that the government would not compromise with anyone who obstructed the development work, and said that it would not stand any wrongdoings.

FCAN President, Singh, said that the construction industry was facing severe crisis due to financial crunch.

He demanded that the government provide 20 per cent of the mobilisation amount which the builders are entitled according to the Public Procurement Act, and refund the bond amount of the builders if the project is completed so that 'cash flow' would be maintained in the market.

Singh also suggested not to open a new contract until the full payment is made for the completed project.

According to a statement issued by the FCAN, Secretary of the MoPIT, Gopal Sigdel, had briefed the DPM that the financial crisis had troubled the construction industry. 

Published in The Rising Nepal daily on 6 January 2023.  

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