Kathmandu, March 16: The Federation of Contractors Association of Nepal has urged the government to declare a ‘Construction Holiday’ until prices of construction materials stabilize. The Federation has made this demand while pointing out to the price hike in diesel, petrol, kerosene and other fuels used extensively in the construction industry, owing to the ongoing war in the Middle East and West Asia.
A statement issued today by the Federation’s General Secretary Roshan Dahal the price hike in fuel and other materials during the busy construction season will definitely put a huge financial burden on contractors and increase infrastructure costs, which will also add to the financial burden on the public bodies of the Nepal government. Hence, the Federation will be forced to suspend the construction work of all projects until the price hike stabilizes.
In addition to the huge price increase in fuel materials, the Federation claims that a limited number of importers have been resorting to carteling, using the opportunity of the recent elections to create an artificial shortage of bitumen used in road construction. The price has increased by up to Rs 40 per liter compared to the price at the time of ‘booking’.
Furthermore, the country’s construction industry has been further affected by the recent ban on the export of bitumen by India. The prices of steel rods and cement have also increased and the construction industry, which is already in dire straits due to lack of payment, has suffered further, adds the statement.
In addition, the Federation has demanded that the concerned government authorities make arrangements for price adjustments in accordance with the price hike in each project as per the Public Procurement Act and regulations.
