Govt readies to tackle construction sector problems: Infrastructre development minister

KATHMANDU: The government is prepared to tackle problems facing the construction sector, Minister for Infrastructure Development Sunil Lamsal said on Friday.

Speaking at a meeting of the Infrastructure Development Committee of the House of Representatives, Minister Lamsal acknowledged that the sector is under strain from financial pressure, rising costs and delayed payments, and urged construction entrepreneurs to continue their work with confidence.

Entrepreneurs at the meeting complained that they have not received payments for completed projects, that costs have surged because of steep price increases, and that extending project deadlines has become complicated. In response, the minister said the government is working to resolve these issues through legal and policy reforms.

Minister Lamsal warned that delays and substandard work are unacceptable and instructed businesspeople to finish projects on time in accordance with procurement agreements. He said, "Businesspeople must create their own action plans and proceed ahead with their work responsibly."

The minister noted that rising diesel and construction material prices have had a major impact on projects and affirmed the government’s commitment to addressing entrepreneurs’ concerns. He added that price adjustment and deadline extension matters are being reviewed using the central bank’s indicators, and that, where necessary, some projects may require amendments to existing laws.

The Infrastructure Development Minister emphasised that the state and construction firms are development partners and that timely completion of development projects depends on coordination and cooperation. He also cautioned that the government will take firm action against businesspeople who are negligent and cause unnecessary delays.

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