Government pays Rs 3 billion to contractors

By Bishnu Pandeya, Kathmandu, Nov.28:  The government has started paying its dues to the concerned construction contractors who have completed their ascribed projects in the previous fiscal year. Around three billion has been paid after Dashain by the government.  

The government had stepped up to disburse the remaining payments to the contractors after they stood their ground to not work until they got their payments. Accordingly, the government has continued the payment process by transferring the amount into different budget topics. 

Contractors complain of lack of payment 

The contractors have expressed their dissatisfaction saying that even though the government gave a commitment to pay them before Dashain it is yet to fructify. Full payment is yet to be made. 

According to the Federation of Contractor's Association of Nepal (FCAN), Rs 4 billion is yet to be paid. After coming into a demonstration by halting the ongoing work, the government had come to an agreement to make the payment. 

Rabi Singh, Chairperson of the Federation of Contractor's Association of Nepal (FCAN), said that Rs 4 billion last year is yet to be paid. 

He said that even though Rs 3 billion payment has been made, the remaining Rs 4 billion, billing amount, is yet to be paid. 

He said, “The government has not made the full payment of the remaining amount of the previous fiscal year. Around Rs 3 billion have been paid off, while, Rs 4 billion as per the billing, is yet to be disbursed.” 

He said that the payment of the Rs 40 billion, which does not have billing owing to various reasons, is yet to be made. The payment of the previous fiscal year is due so there is confusion on how to move further in the current fiscal year.  

“The government has not been able to clear the previous fiscal year’s payment. Therefore, a problem with contractors continuing their work has surfaced,” said Chairperson Singh. 

He said, “The money of different suppliers involved in different projects is still due, therefore, suppliers are not being able to supply materials and give payments to their workers. How to work like this? The government needs to reduce projects which cannot see their completion.”

According to him, the government should reduce the projects that do not have an allocation of the project in the current fiscal year. The project should be moved forward after doing the homework on how to lead them successfully. 

Payments of a current fiscal year to be prioritized 

The Department of Roads said that it is unlikely that the projects of this year will move forward successfully bearing in mind the dues of the last year. 

 Sushil Babu Dhakal, Director General of the Department of Roads, said that payment for the current fiscal year will be prioritized over the due payments of the last year. 

He said, “Some payments of the last year have been disbursed while some are still due. While taking into account be paid amount of last year's projects, the allocated money for this year’s project has been wiped out. Therefore, the issues about progressing the projects of the current fiscal year have come up. Because of that, some of the projects lack any allocated money.” 

What does the government say? 

The government official said that the government is working to make the payment of the dues following the process. 

According to Bhupal Raj Shakya, Spokesperson of the Ministry of Finance, the government is paying the dues.

He said, “The Ministry of Finance has approved to transfer of budget on the proposed projects. The respective ministry is making the payment as well. The payments are being made in the process.”