Thursday, 29 July, 2021
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BUSINESS

PM to address issues prevailing construction sector



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Kathmandu, July 21: Prime Minister Sher Bahadur Deuba has vowed to address the problems of the construction entrepreneurs in the country. Congratulating the newly appointed Prime Minister Deuba, the delegation of the Federation of Contractors’ Associations of Nepal (FCAN) led by its President Rabi Singh wished for a successful tenure of PM Deuba.

Demanding implementation of budget launched by the erstwhile government for the new fiscal year 2021/22, the delegation urged PM Deuba to address the issues in the construction sector if even the incumbent government introduces supplementary budget.

The delegation put forth a number of recommendations to the PM which are aimed at facilitating the construction entrepreneurs across the country such as relaxing the rules and regulations for the construction of physical infrastructures and procedure for the entrepreneurs to obtain loan from the bank in a hassle-free manner and waiver of the fine, waiver of renewable of bank guarantee among others.

The delegates also demanded that the Public Procurement Act- (Second Amendment) be made more entrepreneurs-friendly. The Act is currently registered for amendment.

They also drew the attention of the Prime Minister for his positive intervention for the release their long over-due payments. Demands also include vaccination against COVID-19 for those frontline construction workers, construction entrepreneurs as well as their staffers.

Recommendations also touch on considering bank guarantee for free-of-cost, refinancing, waiver in the fees, renewable of insurance for free, removal of bank credit line and criteria of tender among others.

According to FCAN, around 5,000 projects were adversely affected during the first and second wave of COVID-19. The monsoon-induced disasters also stalled or slowed down the pace of construction projects.

At such gloomy times, the Federation has urged the government to consider extending the deadline for the completion of the projects which could clear off the hurdles emerging to take forward the projects.

The cent per cent waiver of collateral has been demanded that would contribute in increasing cash flow in the market and activating the economy affected by COVID-19 since the beginning of 2020.

The delegates argued that the State would not incur any losses if the provision to return back cent percent of the bank guarantee is implemented. Instead, they assured the PM, that the move would ensure increase in cash flow in the market and show improvement in the economic indexes thereby bringing win-win situation for both the government and the construction entrepreneurs.