Nepal | July 04, 2020

Govt to establish construction firm within next week

Himalayan News Service
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Kathmandu, July 4

Stating that the private construction companies have been continuously causing delays in public construction works citing various reasons, the government has decided to establish its own construction company to accelerate the development works as required.

Speaking at the Development and Technology Committee meeting today, Minister for Physical Infrastructure and Transport Raghubir Mahaseth, said that the government is doing homework to establish its own construction company.

“If things go as per plan, the company will be established within the next week,” Minister Mahaseth informed, adding that the company will also provide training for capacity enhancement and other construction related works to Nepali contractors.

He further said that the private construction companies have formed a syndicate type of mechanism in the construction sector and are not performing according to the required specifications, so the need for a government-owned construction company has become must.

However, private construction entrepreneurs have said that establishment of a government-owned construction company will give rise to institutional corruption in construction works.

Nicholas Pandey, senior vice-president of Federation of Contractors Association of Nepal, said that if the government does proper homework before establishing a construction company then it will be good, but if it is opened in a haphazard manner then the outcome will not be as expected.

“If the government-owned company participates and competes with private sector companies in a fair manner then it will be good for the sector, however if it does not then it will be place for institutional corruption only,” Pandey said.

Moreover, in the committee meeting, Minister Mahaseth promised to transform Kathmandu within the next year. “We have been working hard to make Kathmandu a better place. To avoid the traffic congestion in the Valley, the government has already initiated plans to construct underpasses in various locations.”

He further informed that the government will invest money from its coffers to build a covered underpass in Koteshwor and also to build flyovers, signature bridges in New Baneshwor, Gaushala, Maharajgunj, Chabahil and Thapathali junctions.

Moreover, the committee meeting has also directed the government to open the licence for operation of public electric vehicles.


A version of this article appears in print on July 05, 2019 of The Himalayan Times.

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