Nepali, Korean builders sign MoU
KATHMANDU, MAY 26 -
Nepali construction companies now can take up international contracts as management contractors.
A memorandum of understanding (MoU) signed between the Federation of Contractors’ Associations of Nepal (FCAN) and International Construction Association of Korea (ICAK) has opened this avenue for Nepali contractors.
“This MoU means Nepali builders will now be able to work with Korean firms in international construction markets as management contractors in an institutional way,” said FCAN President Jayaram Lamichhane. “Nepali companies taking the responsibility of management will be able to go wherever Koreans take their investment and technology.”
ICAK is an organisation of Korean contractors participating in overseas construction and development activities. The FCAN-ICAK MoU, according to Lamichhane, will also help attract Korean investment in Nepal’s infrastructure development sector. The MoU was signed by FCAN President Lamichhane and ICAK President Choi Jae Duck during an FCAN delegation’s recent visit to South Korea. Nepali contractors say this deal is a significant development as Korean contractors are second big player in the global construction business after Chinese.
The five-point MoU include promoting the participation of FCAN and ICAK member contractors in engineering, construction and infrastructure developments projects, exchanging information about companies that are eligible to carry out projects in joint venture and exchanging information about infrastructure development projects in both countries for possible investment. So far, only a handful of Nepali contractors have been able to work in the international construction business with their individual approach.
Lamichhane said the agreement has also opened door for bringing in new technologies being practiced by Koreans in construction and physical infrastructure development. “Korean contractors are very much interested bringing investment and modern technology for the proposed Kathmandu-Hetauda Tunnel Road, upon FCAN’s request,” he said.
FCAN has also invited a team of Korean contractors to Nepal for readying a work plan regarding the agreement.
A six-member Nepali team led by Lamichhane had visited Korea for the MoU signing. The team also attended the 36th Mid-term Executive Board Meeting of the International Federation of Asian & Western Pacific Contractors’ Associations (IFAWPCA) held in the Jeju Island, South Korea, from May 18 to 19.
The pact with ICAK will play an important role for attracting investment in infrastructure during the Nepal Investment Year 2012-13, according to FCAN. Besides, hundreds of Nepali engineers, sub-overseers and other work force would be able to find work in various countries.
Source: The Kathmandu Post
