It is the responsibility of the government to ease the difficult situation. In doing so, the government must work on both addressing the immediate difficulties and formulating a long-term strategy.
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Construction work in Nepal has always been slow. No project is completed on time. We have to wait for years to see if the project will be completed and the benefits will be derived from it. In a situation where alternatives are being sought for construction, where it is mandatory to complete the project work on time, the impact of the US-Israeli and Iran wars has also been added.
Especially due to the shortage of raw materials and price hike, work on large projects has been stopped. This has created suspicions that the construction completion period will be further delayed. Construction entrepreneurs are also raising the voice of price adjustment. They have also warned that there will be a 'construction holiday' if the price is not adjusted. Therefore, the government needs to take all possible measures to keep the construction work going and to ensure that it is completed on time.
Construction entrepreneurs are currently facing a severe shortage of bitumen (a material made from petroleum products used in black paper). The price of bitumen, which is available for 80 to 84 rupees per kilogram, has now increased to 150 rupees. It is natural for the cost to increase after the price reaches almost double the price at the time of contracting. This has made it difficult for businessmen to bear the cost.
Even after paying the increased price, there is a shortage of bitumen to continue the work. However, from Falgun to Jestha is the main season for importing bitumen. The shortage and price increase during the main season have affected the entire construction sector. Similarly, fuel has also become expensive now. Construction businessmen say that the increase in the price of diesel has increased the cost of construction equipment and operating expenses by up to 70 percent.
Currently, projects worth about 8 trillion are underway across the country. There are 2 million direct and indirect jobs in the construction sector. However, projects whose work has stopped or is being carried out at a slow pace due to shortages and high prices have started laying off workers. In a situation where there is already a shortage of jobs and high prices have already entered the kitchen, such a reduction in employment opportunities is certain to have a multifaceted impact.
It becomes difficult to invest in the daily needs of families connected to workers, food supply, education and health of children, and health of the elderly. This pushes lower class families into a more difficult situation. When there is a break in the continuity of employment, money does not reach the hands of citizens, which will ultimately slow down the slow pace of the economy. Disappointment and anger also increase in society. It encourages resentment.
Due to the shortage of materials including bitumen and excessive price hike, work on large projects such as Nagdhunga-Mugling, Kakadbhitta-Laukahi, Kamala-Kanchanpur, Suryabinayak-Dhulikhel, Aanbukhaireni-Pokhara has started to stop. Stopping the work of the project has many negative effects. First, if the relevant project is completed on time, it would create a situation where it would be possible to benefit from it. For example, if the reconstruction work of the BP Highway was completed on time, thousands of daily commuters would be able to travel comfortably.
When some projects are completed, new types of jobs would be created. When large projects are completed on time, the nation's confidence would increase. There would be incentives to invest by selecting projects with more investment and higher profits. But wherever the project remains in the construction stage, national morale weakens. The Nepali state and society have been in this mood for a long time.
Second, if the project is not completed on time, the cost will increase. Even now, construction entrepreneurs are pressuring for price adjustment by pointing to shortages and price increases. Third, if the project is left unattended, it can cause loss of life and property. News of accidents or extended travel times in road projects under construction is not new.
It is the government's responsibility to ease the difficult situation. In this process, the government should work on both sides of addressing the immediate difficulties and formulating a long-term strategy. The government should review how objective the difficulties faced by construction entrepreneurs are now and how much difficulty it has added to the continuation of construction work.
If the situation is beyond the control of construction entrepreneurs, the government should be able to bring a relief package. Relief and discounts can also be provided. The market should be monitored, keeping in mind the possibility that black marketing is still taking place. At the same time, the tendency of construction professionals to use the Iran war as a weapon to hide their incompetence should be discouraged. Second, the government should create a long-term mechanism to prevent shortages of essential goods in the field of large infrastructure construction. Supply management should be improved so that the work of such projects is not disrupted under any circumstances and is completed on time.
