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 on Monday, the Federation informed that while decisions were made to undertake around one lakh projects worth approximately NPR 19 Kharba 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 incomplete. 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 parties' leaders and officials should issue restrained statements. The Federation has demanded amendments to provisions like Section 59 of the Public Procurement Act, 2063, the automatic rejection of bids offering discounts exceeding 15 percent, simplification of the monthly payment system, formulation of an integrated 'umbrella law' for the construction industry, and ensuring the 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.

The construction industry, which provides employment to over 2.5 million people, second only to agriculture, requires industry-friendly policies and modern technology for the rapid development of the infrastructure sector, the Federation stated.

Contractors have demanded that the government guarantee peace and security at project sites, as well as ensure the safety of construction contractors and equipment. Ravi Singh, President of the FCAN, mentioned the necessity of revitalizing the physical infrastructure sector and stated that cumbersome regulations related to this sector must be changed. He noted that the construction sector will only gain momentum if simple and practical policies and regulations are implemented.