Over 30,000 Development Projects Stalled, Contractors Sound Alarm Over Policy Failures
Kathmandu: More than 30,000 development projects across Nepal have been left in limbo due to resource shortages and policy bottlenecks, the Federation of Contractors' Associations of Nepal (FCAN) has said, warning of a serious slowdown in the country’s infrastructure drive.
At a press conference on Tuesday, the federation blamed “impractical” government approaches and weak capital expenditure for the widespread delays. Although the government announced projects worth around Rs 1,900 billion after fiscal year 2073–74 BS, FCAN claimed that spending performance has remained poor, preventing timely implementation.
Several major national pride projects — including the Melamchi Drinking Water Project, the Nagdhunga Tunnel and the Kathmandu-Terai Fast Track — have also faced repeated delays. According to the federation, outdated laws and procedural hurdles in place for nearly two decades have hampered progress in the construction sector.
FCAN General Secretary Roshan Dahal called for a review to identify the root causes of delays and urged political parties and officials to exercise restraint in their public remarks on construction works.
The federation has demanded amendments to Clause 59 of the Public Procurement Act, 2063 BS, automatic rejection of bids quoting more than 15 per cent above or below estimated costs, simplified monthly payment processes, an umbrella law for the construction industry and guaranteed supply of materials. It has also sought stronger technical capacity in regulatory bodies, reduced thresholds for projects handled by local consumer committees and improved security for contractors and equipment.
Describing construction as the country’s second-largest employer after agriculture, providing jobs to over 2.5 million people, FCAN stressed the need for industry-friendly policies and technological advancement to prevent further stagnation.
