The Nepal Construction Industry Council has called on the government to settle outstanding payments and create a conducive environment for infrastructure development to counter the ongoing contraction in the construction sector.
Council officials, led by Chairman Balibhadra Rana, conveyed their concerns during a meeting with Prime Minister KP Sharma Oli at his official residence on Tuesday evening.
Key issues raised included the need for amendments to the Public Procurement Regulations and price adjustments in construction contracts to reflect rising costs of materials such as cement and steel rods. The delegation emphasized that these measures are essential for reviving the struggling construction industry.
Prime Minister Oli acknowledged the concerns and informed the delegation that partial payments had already been made to contractors. He assured them that he had instructed the relevant authorities to expedite the payment process for remaining dues.
Addressing the issue of quality, PM Oli urged contractors to prioritize high standards in their work, noting that substandard construction in some areas was linked to contracts being awarded to the lowest bidders. He stated that the government would not tolerate projects that fail to meet quality benchmarks and emphasized that potential risks are factored into cost estimates.
Oli reaffirmed the government’s commitment to prioritizing development projects, citing the successful completion of post-earthquake reconstruction as an example of its dedication to infrastructure development.
The discussion underscored the importance of collaboration between the government and the construction industry to address financial and regulatory challenges, ensuring the sector’s recovery and contribution to national development.
08th Jan 2025
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