Kathmandu –The Federation of Contractors’ Association of Nepal has informed that more than 200 works have been affected due to payment delinquency in the construction sector.
Speaking at a national meeting organized in Kathmandu on Saturday, Association Chairman Rabi Singh stated that over 200 works have been impacted, with 1,500 more construction contracts likely to be problem-ridden by the end of Ashar.
He added that despite long-standing requests for payment, the government has yet to provide the required funds. Singh expressed concern that the government has not made the full payment for last year’s contracts. This year, during the budget allocation, no payments were made, which has further unsettled the construction sector.
Chairman Singh said, “We have been informing the honorable Prime Minister, the Deputy Prime Minister, the Minister of Urban Development, the Deputy Finance Minister, the Minister of Development, Chief Secretaries, and other key officials about the justification for organizing this national meeting. Despite raising this critical issue during a crucial time for the sector, the government has been unable to provide full payment for last year. The overall construction sector is in disarray as the budget allocated for this year’s payments is being used to cover overdue payments from last year.”
Singh added that the national meeting had been organized to discuss how to resolve these issues and reach a conclusion. The meeting also aimed to address how to combat the black market for construction materials, including cement and steel rods. He informed that construction entrepreneurs from all 77 districts and seven provinces attended the national meeting.