Infrastructure Ministry Directs Termination of Stalled Construction Projects, Triggering Conflict with Contractors
Summary
The Ministry of Physical Infrastructure Development in Nepal has ordered the termination of contracts for stalled construction projects due to delays, sparking strong protests from construction entrepreneurs facing rising material costs.
Key Points
- The Ministry of Physical Infrastructure Development directed immediate termination of contracts for stalled construction projects where progress is below 90%.
- Construction entrepreneurs protested strongly, accusing the government of treating them like criminals amid soaring construction material prices.
- The Federation of Contractors of Nepal warned of escalating protests, including a possible 'construction holiday' if demands for price adjustments are unmet.
- Rising international raw material costs, exacerbated by geopolitical conflicts, have led to price increases up to 100% in key construction materials in Nepal.
