Kathmandu, Feb 23: The Federation of Contractors’ Associations of Nepal (FCAN) has stated that more than 30,000 development projects across the country have been thrown into limbo due to a lack of resource guarantees.
Speaking at a press conference in Kathmandu on Sunday, FCAN officials said the projects have stalled largely because of what they described as the government’s “impractical” policies and procedural hurdles. They noted that since fiscal year 2073/74 BS, the government has announced projects worth around Rs 1,900 billion, but capital expenditure performance has remained weak.
According to the Federation, several national pride projects—including the Melamchi Drinking Water Project, the Nagdhunga Tunnel, and the Kathmandu-Tarai Fast Track—have faced significant delays, including those involving foreign construction companies.
FCAN concluded that outdated laws and regulations in place for nearly two decades have hindered the growth of the construction sector.
Federation General Secretary Roshan Dahal called for identifying the real causes behind delays in the construction sector and exploring practical solutions. He also urged political parties and government officials to exercise restraint when making public statements about construction works.
Among its key demands, FCAN has called for an amendment to Clause 59 of the Public Procurement Act, 2063 BS, the automatic rejection of bids that quote more than 15 percent above or below the estimated cost, simplification of monthly payment procedures, formulation of an umbrella act for the construction industry, and assurance of smooth supply of construction materials.
The Federation further demanded a reduction in the threshold of projects handled by local consumer committees, enhancement of technical expertise within regulatory bodies, and guarantees for the safety of construction entrepreneurs and equipment.
Stating that the construction sector is the second-largest source of employment after agriculture—providing jobs to more than 2.5 million people—FCAN emphasized the need for industry-friendly policies and the adoption of advanced technologies to revitalize the sector.
