Contractors demand immediate release of outstanding payments

Kathmandu, January 25

Contractors have urged the government to release pending payments of various government-owned projects that have been completed and under way as soon as possible.

Citing that government’s delay in releasing payment of different projects has added financial burden on contractors across the country, they have asked the Ministry of Physical Infrastructure and Transport (MoPIT) and Department of Roads (DoR) to facilitate the process of releasing due payments at the earliest.

Moreover, a delegation of the Federation of Contractors Association of Nepal (FCAN) today met MoPIT and DoR leadership and alerted that contractors have started halting different projects (basically road and bridge projects) especially in rural areas and have been staging protests demanding speedy release of pending dues.

“The government is yet to release more than Rs 20 billion for projects that have been completed to the contractors across the country. Contractors are not in a position to continue construction works if the due amount is not released immediately,” said Bishnu Bhai Shrestha, president of FCAN.

According to him, contractors are facing problems in issuing labour wages, pay bank interest rates and purchase construction materials for different projects due to the delay in release of payment by the government.

As per FCAN officials, contractors are yet to receive almost Rs 540 million in payment for different road projects in Nuwakot and more than Rs 750 million for road expansion and maintenance in the Kathmandu Metropolitan City.

Moreover, contractors also said that the unnatural hike in price of construction materials like cement and rods in recent weeks have adversely affected the entire construction sector.

FCAN has requested related government agencies to curb such arbitrary price hike in construction materials as soon as possible or compensate contractors for the loss they have been bearing due to the same.

“The government should introduce a mechanism to fix the price of construction materials. Abrupt and unscientific increase in price of construction materials will leave negative impact on country’s construction industry,” said Shrestha.

Meanwhile, both Director General of DoR Gopal Prasad Sigdel and Joint Secretary of MoPIT Rajendra Raj Sharma refused to make any comment on this issue.

However, Shrestha of FCAN informed that both MoPIT and DoR have expressed commitment to facilitate in releasing at least Rs five billion pending dues to contractors across the country within one week.