Contractors urge PM Oli to address payment delays

KATHMANDU, JANUARY 8: The Nepal Construction Industry Council has called upon the government to expedite the payment of outstanding dues and create a more conducive environment for the construction sector, which has been experiencing a significant slowdown.

During a meeting with Prime Minister KP Sharma Oli on Tuesday evening, Council Chairman Balibhadra Rana and other officials emphasized these critical issues. The delegation also highlighted the need for amendments to the Public Procurement Regulations and adjustments to contract prices to reflect the substantial increase in construction material costs, particularly for cement and steel rods.

In response, Prime Minister Oli acknowledged the payment delays and assured the Council that he had already directed relevant authorities to streamline the payment process. He emphasized the importance of maintaining high-quality construction standards, expressing concerns that the current practice of awarding contracts based solely on the lowest bid can sometimes compromise quality.

The Prime Minister firmly stated that the government will not tolerate any construction work that falls below acceptable quality standards, emphasizing that potential risks should be adequately considered during the cost estimation process.

Reiterating the government's commitment to development, Prime Minister Oli highlighted the successful completion of post-earthquake reconstruction efforts as a testament to the government's dedication to infrastructure development.