Construction Entrepreneurs Federation Warns of Nationwide Construction Halt Over Price Hikes

Kathmandu. The Federation of Construction Entrepreneurs has warned of halting all construction work across the country within a week if their demands are not met, citing that the construction industry has collapsed due to excessive price hikes in construction materials and the state's indifference.

The Federation informed at a press conference on Tuesday that a 'construction holiday' situation has arisen due to the unexpected increase in the prices of fuel and construction materials at the present time.

According to the Federation's General Secretary Shivahari Ghimire, the price of diesel, which was Rs 139 per liter before the West Asian war, has now reached Rs 225, while the price of bitumen, which used to cost Rs 75 per kg, has reached Rs 155.

Similarly, General Secretary Ghimire stated that it has become impossible to work at the old rates due to the price increase in cement, iron products, and other items. The Federation has defined this situation as a 'force majeure' and demanded price adjustments.

Meanwhile, it has been informed that the country's overall economy and the construction industry have reached the most difficult phase in history, with only about 27 percent of the capital expenditure allocated in the budget of the current fiscal year having been spent so far.

Likewise, although the Public Procurement Act ordinance recently introduced by the government includes some positive aspects, the Federation argues that it has not fully addressed the main problems of the construction industry such as the 'low bidding' problem, work through consumer committees, and price adjustment issues.

The Federation has expressed serious objection to the recent crackdown and arrests of construction entrepreneurs by state bodies. The Federation has demanded an immediate halt to the intimidation and arrest of entrepreneurs in the name of investigation regarding technical issues in the electronic procurement system.

General Secretary Ghimire said, 'Entrepreneurs are caught in a double bind of unbearable losses if they continue construction work, and government fines if they don't.'

The Federation has made it clear that if the government does not make price adjustments and other policy decisions within the next week, all construction work across the country will automatically stop, and the government will have to take responsibility for the consequences. They have warned that strict protest programs will be announced soon if their demands are not met.