Contractors fret over low capital expenditure

KATHMANDU, DEC 08 -

Contractors have complained that low capital expenditure as a result of a delayed budget has hit their business hard.

The Federation of Construction Associations of Nepal (FCAN) on Friday said some 14,000 small contractors have suffered the most. “Inadequate budget allocation has also delayed work on ongoing projects,” said FCAN President Jay Ram Lamichhane, addressing the fifth National Construction Day here on Friday.

In the two-third budget presented on the third week of November, the government has earmarked Rs 51 billion for development projects. Chances of the allocated resources being utilised fully are ‘slim’, given the money has to be spent based on the size of the sum used in ongoing projects during last fiscal year, the constructors said.

“Only 15 percent of the capital expenditure has been disbursed so far,” said Lamichhane.

Contractors urged the government and the political leadership to create conducive environment to expedite development work, complaining that they were being ignored despite being capable to execute larger projects.

Kalika Construction’s chairman Bikram Pandey said domestic contractors are capable of constructing even the national-level projects such as road and irrigation. “However, they are not favoured in such contracts. As a result, many contractors are making their way to foreign countries,” he said.

On the occasion, FCAN honoured the best performing contractors with the Jagadamba Steels-FCAN Excellence Award. Kalika Construction bagged the top ‘Class A’ contractor award. Sharma & Company and Nepal

Adarsha Nirman Company bagged the second and third positions in the category.

Likewise, Ashraya Nirman Sewa secured the top ‘Class B’ contractor award. Naya Bato Nirman Sewa was honoured with the best contractor award in ‘Class C’, while JB Nirman Sewa clinched the top award in class ‘D’.

FCAN also honoured individual contractors and regional associations. Mana Gomati Joint Venture from Myagdi was awarded with the ‘Exemplary Person or Company Performance in Construction Sector Award.’

Similarly, Laksheema Katuwal of KC Nirman Sewa, Morang, was honoured with the ‘Exemplary Woman Entrepreneur in Construction Sector Excellence Award.’ Engineer Shankar Nath Rimal was honoured with the ‘Pioneer Engineer Award.’

The Eastern Contractors’ Association, Biratnagar, received the ‘Best Regional Contractors’ Association’ award. Jumla Contractors’ Association, Kathmandu Contractors’ Association and Dang Contractors’ Association were also among those honoured in Himali, Mountain and Tarai categories.

Source: The Kathmandu Post