Over 30,000 Projects Stalled Due to Lack of Funding Assurance, Says Construction Association

Kathmandu. The Federation of Contractors' Associations of Nepal (FCAN) has stated that over 30,000 projects have been left incomplete due to the lack of source assurance for funding. At a press conference organized here today, the Federation informed that while decisions were made to construct around 100,000 projects worth approximately NPR 1.9 trillion in the country since the fiscal year 2073/74, more than 30,000 projects are currently stalled due to the government's impractical policies and various other issues.

The Federation noted that the minimum capital expenditure figures allocated annually by the state appear extremely weak, and even national pride projects involving foreign construction companies, such as the Melamchi Water Supply Project, Nagdhunga Tunnel Road, and the 'Fast Track,' which were provided with sufficient budget and source assurance, remain unfinished. The Federation believes that impractical laws and regulations dating back nearly two decades are hindering the construction industry.

Roshan Dahal, General Secretary of the Federation, stated that a realistic study and solution must be sought for the delays observed in the construction sector. The Federation emphasized that responsible political party leaders and officials should express restrained statements. The Federation has demanded amendments to provisions such as Section 59 of the Public Procurement Act, 2063, automatic rejection of bids offering more than 15% below the estimated cost, simplification of the monthly payment system, formulation of an integrated 'Umbrella Act' for the construction industry, and ensuring easy availability of construction materials.

Furthermore, the Federation has demanded that the government reduce the scope of construction work carried out through consumer committees, enhance expertise related to the construction sector in regulatory bodies, and guarantee the security of contractors and equipment. Highlighting that the construction industry provides employment to over 2.5 million people, second only to agriculture, the Federation stated that industry-friendly policies and modern technology are essential for the rapid development of the infrastructure sector.

Construction entrepreneurs have demanded that the government guarantee peace and security at project sites, as well as ensure the safety of contractors and construction equipment.