KATHMANDU, JUNE 4

The Federation of Contractors' Associations of Nepal (FCAN) has announced that it will be compelled to suspend all project activities and initiate protests unless the government extends the deadline of the projects.

FCAN has expressed its disappointment with the government's inability to address crucial issue of extending deadlines for various projects through the annual budget until 2024. In response, they have announced that if the government fails to extend the deadline until July 19, they will suspend construction activities nationwide and symbolically surrender their permits.

According to the federation, the deadlines for more than 3,000 projects need to be extended due to various factors, including the repercussions of the federal and provincial elections held last year, delayed payments to businesses by the government, supply chain disruptions caused by market price increases, and the unavailability of loans from banks.

The federation has also said that the budget has overlooked critical issues such as resolving pending payments worth around Rs 70 billion, and the prevailing high level of inflation.

On a positive note, FCAN has lauded certain measures outlined in the budget speech for the next fiscal year, which include the augmentation of allocated funds following due procedures, the delegation of responsibility and accountability to project heads, updating of construction entrepreneurs' records through the Public Procurement Monitoring Office, revision of procurement laws and regulations, among others.

A version of this article appears in the print on June 5, 2023, of The Himalayan Times.