Government Preparing to Address Unnatural Price Hikes in Construction Materials

Kathmandu. Director General of the Department of Urban Development and Building Construction, Rabindra Bohora, has stated that the government is preparing to address the unnatural price hikes in construction materials through the Procurement Act and Regulations.

He urged the construction entrepreneurs, who had stopped work and submitted a memorandum to the department, to return to work with confidence as the process to solve the problem has already begun.

According to Director General Bohora, the ministry had asked the Directors General of departments related to development construction to prepare a report to solve the problem. A report with suggestions to solve the problem in various models has been sent to the ministry, and efforts are underway to resolve the construction entrepreneurs' problems soon.

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He clarified that the report has been prepared and submitted to the ministry to address the price hike problem within the Procurement Act and Regulations. Bohora stated that after the report reaches the Prime Minister's Office from the ministry for discussion, the proposal will move forward through the Ministry of Law.

He mentioned that similar practices of removing obstacles have occurred in the past during the COVID period and in tunnel construction, and the Nepali government can find a solution through the same process if it wishes.

Explaining the problem-solving model, Director General Bohora said, 'The Directors General of departments related to development construction were given the responsibility, and we worked on various models. The latest model among them is a report prepared with suggestions to address the price hike under the Procurement Act and Regulations, regardless of the circumstances when extending the deadline. That is currently under consideration at the ministry. After discussion on the matter at the Prime Minister's Office from the ministry, a decision will be made on how to remove obstacles according to the provisions of the Procurement Act.'

He added, 'Such practices have occurred in the past. Obstacles were removed during the purchase of construction materials during the COVID period and in tunnel construction. The Nepali government can solve this problem even now if it wishes. The government is working in that direction, and the process has advanced significantly. After agreement at the Prime Minister's Office, the Ministry of Law will take the proposal forward, and this is something that can be done quickly. Work will move forward in that direction within this week.'

Bohora reiterated that the government has already made significant progress in the necessary homework to solve the problem and is optimistic about a quick decision. According to him, although work on road projects using bitumen has been affected, there is no situation where work has to be completely stopped in other construction sectors as the prices of steel bars and cement have not increased excessively. The government expects that once the price adjustment problem is resolved, there will be ease in extending deadlines, and construction entrepreneurs will speed up their work.

He said, 'We Directors General worked on two-three drafts. Among them, the current model seems more practical. A report has been prepared with suggestions from the Prime Minister's Office and experts, allowing construction entrepreneurs to work, with price adjustments. This will be passed soon. Such issues should be resolved spontaneously rather than continuously pressuring the state. However, it has only been two months since the new government was formed. I understand that the government is preparing to address this and move forward, and it will be addressed soon. I am positive from the department's side.'

Meanwhile, construction entrepreneurs, while submitting the memorandum, stated to the Director General that they would not return to work until their demands were met, as working under the current conditions would lead to losing their homes and land.