FCAN Says Over 30,000 Projects Affected by Lack of Resources Guarantee

The Federation of Contractors’ Associations of Nepal (FCAN) has said that over 30,000 projects are marred by the lack of resources, thus falling in limbo.

At a press meet organized here today, the Federation made it clear that such a large number of projects has faced shortage of resources guarantee due to the government’s ‘impractical’ approaches and other various reasons. After the fiscal year 2073-74 BS, the government had decided to undertake projects worth around Rs 1,900 billion.

It is said the data of on annual expenditures of the minimum capital is very weak, and various projects of national pride such as the Melamchi Drinking Water, Nagdhunga Tunnel Way, and ‘Fast Track’ involving the foreign construction companies, have faced delays. It is concluded that impractical acts and rules existing for around two decades have hindered the development of the construction industry.

Federation General Secretary Roshan Dahal proposed finding out the real causes for a delayed progress in the construction sector and explore the solutions accordingly. He also requested the political parties and officials to express statement with patience regarding the construction works.

FCAN sought amendment of Clause 59 of the Public Procurement Act, 2063 BS, implementation of a provision to an automated rejection of bids that quote more than 15 percent above and below the estimated cost, simplification of the process for monthly payment, formulation of an umbrella act regarding the construction industry and guarantee of smooth supplies of construction materials.

It has further demanded the government to slash the threshold of construction works to be undertaken by the local consumer committees, enhance construction-related expertise within regulatory bodies, and guarantee the safety of construction entrepreneurs and construction equipment.

Construction industry is the second-largest source of employment after agriculture, providing jobs to above 2.5 million people, FCAN said, echoing the need for an implementation of industry-friendly policies and an advanced technology, targeting the construction sector. (RSS)