Construction Sector Faces Crisis Due to Price Hikes
Summary
Nepal's construction sector is facing a severe crisis as prices of key materials like bitumen and diesel have surged sharply due to international conflicts, impacting around 30,000 projects nationwide.
Key Points
- The West Asian conflict has led to a significant increase in petroleum and construction material prices in Nepal, with bitumen prices up by 107%.
- Construction entrepreneurs protest demanding scientific price adjustments, project deadline extensions, and fair contract terms to handle price hikes.
- The Department of Roads is studying entrepreneurs' demands to formulate policy decisions to address the crisis and revive stalled construction projects.
- Current legal provisions hinder price adjustment implementation in short-term contracts, complicating responses to sudden price increases.
