Construction Sector Faces Unprecedented Crisis Amidst Soaring Material Costs and Government Pressure
Summary
Nepal's construction sector faces an unprecedented crisis due to soaring material and fuel costs, leading to widespread protests and work stoppages supported by the Federation of Contractors' Associations of Nepal. The government acknowledges the challenges and is exploring solutions but warns work should not be halted.
Key Points
- Nepal's construction sector is in crisis due to a significant rise in construction material and fuel prices, prompting widespread protests and a 'Construction Holiday'.
- Contractors allege that government officials are applying pressure and ignoring legal provisions for price adjustments, threatening blacklisting and forfeiture.
- The price of critical materials like bitumen has more than doubled, exacerbating project costs and causing labor shortages as foreign workers leave.
- The government shows willingness to accommodate demands for price adjustment and deadline extensions but discourages work stoppages, citing increased liabilities due to delays.
