KATHMANDU: A sharp rise in petroleum prices and supply difficulties have begun to affect major development projects in Sudurpashchim Province, slowing construction activities across several large infrastructure initiatives.
Contractors say work has slowed after fuel stocks were exhausted and purchasing new supplies at the current market price became financially unsustainable.
Seti Highway project at risk of halt
Construction work on the southern section of the Seti Highway, the Tikapur–Lode–Chainpur–Taklakot road project, is close to coming to a standstill.
According to project chief Ram Kumar Dev, heavy machinery used for opening road tracks has been left idle after contractors ran out of fuel.
“Contractors have already exhausted their stock, and the work is now on the verge of stopping,” Dev said, adding that even at higher prices it has become difficult to obtain fuel and bitumen.
The 204-kilometre project, which began in 2017, still has about 35 kilometres of track yet to be opened. Although seven kilometres of road were blacktopped this fiscal year using a budget of Rs 250 million, further work has stalled due to a shortage of bitumen.
Mahakali Irrigation project also affected
The third phase of the Mahakali Irrigation Project, a national pride project, has also been impacted by rising construction costs.
Contracts have been awarded in seven packages for building the main canal, but contractors have submitted applications to the project office saying they cannot continue the work due to escalating costs.
Project information officer Yadav Baral said rising prices of fuel and wire mesh have also halted river control works.
“If river control works are not carried out in time, the risk during the monsoon season will increase,” he said.
Mahakali Corridor construction slows
Construction along the Mahakali Corridor, a 425-kilometer road connecting Kanchanpur District to Tinker in Darchula District, has also been affected.
Work is underway in 13 packages along the corridor, but contractors have shown little interest in continuing due to rising fuel and bitumen costs.
According to project information officer Dinesh Raikhola, construction progress has slowed in sections passing through Kanchanpur, Dadeldhura District, Baitadi District and Darchula. In the 79-kilometre stretch of Darchula, however, the Nepali Army is continuing track-opening work.
Contractors warn of ‘construction holiday’
Contractors have demanded price adjustment from the government to cope with rising costs.
Chairperson of the Construction Entrepreneurs Association Kanchanpur, Pushparaj Awasthi, said the construction sector is nearing a crisis.
“Contractors are being forced to sell their property to continue work,” he said, adding that more than 600 contractors in Kanchanpur are preparing for a “construction holiday”, a suspension of work, if price adjustments are not made.
Contractors argue that continuing work under the current price conditions is technically and financially impossible.
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