Construction entrepreneurs complain that work on all projects, big and small, has been stalled due to the increase in the prices of materials used in construction, including bitumen, cement, rods, stones, gravel, and sand.
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Construction entrepreneurs have said that they have had to stop work due to the sharp increase in the prices of construction materials in Nepal due to the ongoing tension in West Asia. They say that they are unable to work until the increased prices of construction materials are adjusted.
Construction entrepreneurs have complained that work on all small and large projects has been stalled due to the increase in the prices of materials used in construction, including bitumen, cement, rods, stones, gravel, sand. In a discussion on the status of public infrastructure construction organized by the Infrastructure Development Committee under the House of Representatives on Friday, Nicholas Pandey, President of the Federation of Nepal Construction Entrepreneurs, said that the ongoing war in West Asia has directly affected the construction sector.
‘It has affected workers, projects and construction materials,’ Pandey said, ‘This sector is currently problematic, work has come to a standstill.’ He said that if the government does not immediately decide on price adjustment, there is no option but to stop work.
Minister for Infrastructure Development Sunil Lamsal said that the demands raised by the construction entrepreneurs are justified. ‘We have repeatedly discussed the price increase adjustment in construction materials,’ he said, ‘Do the work, you will get the price adjustment.’ He explained that there are some reasons why an official decision has not been made yet. ‘This is not a normal price increase, it is the biggest price increase in the construction sector in the history of Nepal,’ Minister Lamsal said.
Minister Lamsal commented that there is a special situation now. Currently, due to the price increase and shortage of bitumen, the work on the roads that were scheduled to be blacktopped has been stopped. ‘Another special situation is that it is legally possible to give a price increase in multi-year projects, but it is not possible to give a price increase in one-year projects,’ Minister Lamsal said, ‘The government should not make a decision that allows someone to give it to someone and not to someone.’ He said that decisions should be made in a way that applies to all types of projects, construction entrepreneurs and local level projects. ‘Instructions have been given to collect data and study the status of the documents of all ongoing projects,’ he said.
Minister Lamsal said that he is directly seeing the impact of the price hike. ‘The government is not that generous or conservative, we also need development,’ he said, ‘If the roads that are ready to be blacktopped cannot be blacktopped now, the loss will be on the construction industry, the general public and the government, we understand this.’ Therefore, he urged the construction industry not to stop the project work.
‘We give a two-month deadline for one-year projects to deal with the impact of the price hike, there is no problem in this,’ Minister Lamsal said, ‘There has been some delay because preparations are being made to solve the problems that have arisen due to the price hike in all projects.’ The committee members emphasize that the government should pay attention to the price adjustment and that construction industry should not delay the work by making excuses.
Minister for Energy, Water Resources and Irrigation Biraj Bhakta Shrestha said that the extension of the overall work time has not only delayed development construction but also made the construction cost more expensive. ‘It is necessary to discuss the issue of laws and implementation in a practical, scientific and timely manner,’ he said. ‘The loopholes and complexities in the laws and regulations should be closed and the development needs of the people should be fulfilled.’ He said that since the only complaint that all public representatives get is when the road will be built, construction entrepreneurs should pay attention to the quality and speed of work.
Secretary of the Ministry of Infrastructure Development Gopal Sigdel said that the unexpected price increase of construction materials after 2065 has now occurred. ‘This is an uncomfortable situation, the government should address it,’ he said. ‘There has been discussion about giving price adjustment to projects under construction, the minister has also said that it should be given.’
Ashish Gajurel, Chairman of the Infrastructure Development Committee, said that there should be no delay in construction work. ‘There should be quality work, construction entrepreneurs should make an action plan so that the work can be completed on time,’ Gajurel said. ‘The work and decisions that the government should do should be made on time. Payment for work done should not be stopped, if there is delay in construction work, the state should be ruthless.’
The committee has directed the government to immediately resolve such problems as they can have a serious impact on the country's development and national economy when many construction entrepreneurs are unable to proceed with construction due to price increases. Since it is necessary to make the public procurement law development-friendly and create an environment for implementation in order to address the problems arising in construction work due to legal complexities, the committee has decided to submit a bill to the parliament in the current session to amend the law.
