Construction Halted in Bagmati Province Due to Soaring Fuel and Material Costs

Hetauda. The Federation of Contractors of Bagmati Province has stated that construction work has come to a standstill due to price hikes in fuel and construction materials caused by the tense situation in West Asia. The federation claims that it is impossible to proceed with development and construction work due to the excessive and unexpected increase in the prices of fuel and construction materials.

Addressing a press conference in Hetauda on Sunday, the federation demanded that the government immediately extend the deadline for all projects due to the current situation. Federation Chairman Chhatra Bahadur Tamang informed that the construction industry is on the verge of collapse due to the tsunami of scarcity and price hikes of construction materials, making it imperative to extend the deadline for all types of contracts.

According to him, the prices of essential materials such as diesel, petrol, kerosene, bitumen, cement, and iron rods have increased significantly, especially due to the ongoing war in the Middle East. He stated that all projects, from national pride projects to small and large ones, have been affected due to the scarcity of construction materials in the market.

He mentioned that this problem in the field of physical infrastructure has started to have a serious impact on the overall economy of the country. He also stated that this problem has created a crisis in the livelihood of millions of workers associated with the construction sector. Despite repeatedly drawing the attention of the government and concerned bodies to the dire situation of the construction industry, only verbal assurances have been received for the past two months. He demanded that the problems of the construction sector be resolved with immediate concrete decisions.

He stated that construction entrepreneurs are facing a huge financial burden and suffering due to the tendency of the central bank's price index not reflecting the actual market inflation and instead showing a decrease in prices. The federation has demanded that the government immediately issue Price Adjustment Guideline-2 according to the price increase in each project and arrange for an extension of the deadline for contracts of all periods.

The federation has also drawn attention to the need for a relief package for entrepreneurs affected by the price hike problem, including bank guarantees, insurance, and additional compensation. Chairman Tamang warned that if the demands of the entrepreneurs are not addressed immediately, the construction industry will collapse, and projects will not be completed on time, making the government responsible for the resulting situation.