Govt won’t break project contracts out of prejudice: Ghising

By A Staff Reporter,Kathmandu, Sept. 22: Minister for Energy, Water Resources and Irrigation, Physical Infrastructure and Transport and Urban Development Kul Man Ghising has said that the government will not break contracts of unattended development projects out of prejudice towards any contractors. 

He made this remark during the meeting with the representatives of the Federation of Contractors' Associations of Nepal (FCAN) at the ministry on Sunday.

Minister Ghising made it clear that contracts with construction entrepreneurs who do not work and leave projects idle for years will be broken.

"The trend of accepting projects by quoting less than the estimated cost but not working on them is widespread. If a contract is accepted by agreeing to a lower amount, my property will be lost, the bank guarantee will be confiscated and the work will not be done unless there is a fear of penalty. Contract agreements are made but projects that have not been completed for a long time and are unattended should not be kept." said Minister Ghising. 

Earlier, he had directed officials of three ministries and departments to immediately prepare and submit a list of such projects.

"There is a budget, the projects are ready for construction, everything is there but why is there no work?" As I am an engineer myself, I am fully aware of the entire contract process.  We also see that the project side does not do the work that should be done. 

We do not take unfair action against anyone. There is no penalty, whatever you do, we must end the trend of doing it anyway," he said. He said that construction entrepreneurs are not working on projects that have a budget.

Minister Ghising urged entrepreneurs to send a message that Nepali contractors are also capable by completing the projects they have taken within the stipulated time and proper quality. 

“There is a general understanding that there are irregularities and corruption in the construction sector. As the main objective of the current government formed after the Gen-Z movement is to control corruption, construction entrepreneurs should also work towards eliminating corruption," he said.

He said that he has respect for contractors who contribute to the development of the country.

The FCAN delegation submitted a memorandum of understanding regarding the existing problems in the construction sector to Minister Ghising.