Finding a permanent solution to end the project's obstacles

It is imperative to objectively assess the impact of the shortage of bitumen and the increase in the prices of other materials on road projects. At the same time, the government should take special initiatives to ensure that the blacktop work on road projects continues as much as possible.

Baishak 16, 2083

Editorial

Finding a permanent solution to end the project's obstacles

We use Google Cloud Translation Services. Google requires we provide the following disclaimer relating to use of this service:

This service may contain translations powered by Google. Google disclaims all warranties related to the translations, expressed or implied, including any warranties of accuracy, reliability, and any implied warranties of merchantability, fitness for a particular purpose, and noninfringement.

As the end of the fiscal year approaches, there has been an obstacle in the blacktop of major and minor roads being constructed and upgraded across the country. Due to the shortage of bitumen (a petroleum product used in blacktop) in the market and the increase in the prices of other construction-related materials, the work of many projects has come to a standstill.

This will not only make it difficult to meet the blacktop target for the current fiscal year, but the completion period for the project will also be extended. Moreover, the completion period for projects in Nepal is not certain. There are many examples of projects not being completed for years.

Therefore, it is imperative to objectively assess the impact on road projects due to the shortage of bitumen and the increase in the prices of other materials. At the same time, the government should take special initiatives to ensure that the blacktop work on road projects continues as much as possible.

Due to the lack of bitumen, work has been stopped in some places on national pride projects such as Mid-Hill, Hulaki, Koshi, Kaligandaki, Karnali Highway and Kathmandu-Terai/Madhesh Expressway, Madan Bhandari Highway, Nagdhunga-Muglin, Jamune-Pokhara, Suryabinayak-Dhulikhel due to the lack of bitumen. Due to the increase in the price of construction materials, slope work in the projects has also been affected. This situation is going to affect the blacktop targets set by various projects for this fiscal year.

For example, the project says that it is not possible to blacktop more than 50 km of the 76 km blacktop on the Hulaki Highway in the current fiscal year. Similarly, the Nepali Army says that the Nepali Army has targeted to build 6 km of blacktop roads in the current fiscal year on the Kathmandu-Terai/Madhesh Expressway of national pride, which is being built under the management of the Nepali Army, but the work has been affected due to the lack of bitumen.

This is the main period for blacktopping on the roads. But this is when the obstacles have come. When work is disrupted, it will affect capital expenditure. Even then, only low capital expenditure has been allocated in Nepal's budget. But even that has not been spent.

It is negatively affecting many aspects such as national confidence, capital formation, job creation, and private sector investment. Therefore, how to increase capital expenditure is a matter of national interest. However, the issue of blacktop being stopped should also be viewed in relation to capital expenditure. Its negative impact should be assessed and a solution should be found in a timely manner.

Citizens are directly or indirectly affected by delays in projects. About 8 trillion projects are underway across the country. There are 2 million direct/indirect jobs in the construction sector. When the work of a project in any sector is affected, the number of workers starts to be reduced. Workers have now been cut in road-related projects.

In a country where employment opportunities are low, cutting workers in any sector will have a multifaceted impact on the economic and social aspects of the concerned family. On the other hand, projects like roads, which benefit many people, are also affected when their construction is disrupted. For example, the blacktop work on the Nagdhunga-Muglin road section, which carries more than 12,000 vehicles daily, has been stopped. This increases the risk of travel, increases the travel time, and adds to the frustration during the journey. 

Construction entrepreneurs have given special emphasis to the shortage of bitumen. They say that they have not been able to get bitumen even though they are willing to pay a higher price. According to the Customs Department, 86.958 million 560 kg of bitumen has been imported in the first 8 months of the current fiscal year. While only 64.274 million 170 kg of bitumen were imported in the same period of the last fiscal year.

Although the data up to Falgun shows that bitumen imports are high, there is a shortage in the market. Why is there a situation where the data shows that there is more import but the entrepreneurs feel a shortage? Isn't there a black market and artificial shortage being created? Monitoring by the government mechanism is indispensable in this regard. If there is an artificial shortage, those involved should be taken action.

The government should also listen to the complaints of construction entrepreneurs. There are five aspects to this. First, the current issue of bitumen shortage should be made public. Second, the ministry and department should keep updating the problems that may arise in the project on a regular basis. Coordination and facilitation should be provided.

Third, the reason why construction entrepreneurs emphasize shortages and price increases is also linked to price adjustment. Compared to the situation when the project was contracted, the cost of the project will definitely increase when prices increase and shortages increase. While price adjustment is done through an automatic system in large projects, such a system can also be adopted in medium and small projects in special cases.

But there must be an assurance that the work will be completed on time. Fourth, the ministry, department and the office of the concerned project should also monitor to find out the concrete reasons why the work could not be completed in each project. A transparent profile should be prepared for each project. And, a solution should be found according to the problem.

Fifth, when there is an obstacle in the construction work, the issue of price adjustment can also arise. However, a decision on time extension should be taken only after an objective evaluation of aspects such as the pace at which the work of which project was being carried out and why it was stopped.

Mainly due to our geographical location and import dependence, there may be a shortage of any item at any time. Therefore, when the work of the relevant project begins, it is necessary to develop a practice of stockpiling materials by anticipating future problems/risks.

For example, if the project that is about to be blacktopped in the near future had kept sufficient bitumen in stock, the current shortage could not have occurred. Similarly, the easy availability of local items required by the project should also be taken into account. In the process, environmental impact assessment and ensuring that there is no risk to the locals should be ensured. For this, there should be coordination between the union and local governments.

Editorial

Link copied successfully