KATHMANDU: The Federation of Contractors’ Associations of Nepal (FCAN) has issued a warning stating that construction projects across the country will come to a standstill if the government fails to immediately settle outstanding payments of 40 billion rupees as per their obligations.
This cautionary announcement was made during a press conference held in Kathmandu on Friday.
“The state’s negligence in addressing the concerns of the Association has weakened the construction sector, compelling us to take decisive action, including engaging in protest movements,” highlighted in the association’s released statement.
According to FCAN, a 9-point agreement had been reached between the Public Procurement Monitoring Office and the Association on July 31. However, the agreement saw no implementation at all.
Roshan Dahal, the Secretary-General of the Association, mentioned that the lack of proper budget allocation for new construction works and the failure to transfer additional budget funds from the Ministry of Finance have hindered progress, forcing entrepreneurs to stall project planning.
Additionally, the association pointed out the predicament faced by construction entrepreneurs, who, despite the extension of various project deadlines, have become non-performing partners due to a lack of adequate resources.
The association expressed its concern through the release that such conditions have imposed a significant financial burden on entrepreneurs when they have been unable to purchase construction materials at current market prices, as directed on January 4.
Moreover, the association highlighted the government’s responsibilities, citing demands for the resolution of issues like non-availability of designs for projects, unavailability of construction sites, and the delayed completion of construction works abroad. They emphasized that the government must address these demands. The association also criticized the government for stepping back from agreements reached on actions like preventing check bounce and bank guarantee seizures, reducing excessive premium rates on insurance, and other agreements.
The association warned that failure to resolve these issues promptly could result in a widespread halt to construction activities, adversely affecting the national infrastructure development.
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