Federation of Contractors’ Associations of Nepal (FCAN) has shown concern about the petroleum crisis that the country is currently facing.

In its nine-point memorandum submitted to Prime Minister Dr Baburam Bhattarai, the umbrella organisation of contractors has mentioned that the petroleum crisis has been hitting the construction sector hard.

The petroleum crisis since November has been hampering the smooth operation of the construction business, so the government must provide an additional three months for the completion of ongoing projects, it said.

“The government must issue a circular to all agencies to grant additional time to complete the projects,” it said. The federation also urged the government to provide a price-hike compensation for ongoing projects according to the inflation rate.

“The price of iron rods, bitumen and other steel items have gone up, so projects which will be completed within 15 months should be eligible for compensation according to the inflation rate calculated by Nepal Rastra Bank,” the release read.

FCAN has also urged for the strict monitoring of projects operated by consumer groups and asked the government to find out whether they are abiding by the law.

According to the Public Procurement Act, consumer groups are not allowed to

use heavy equipment for small construction projects. “But consumer groups have been using heavy equipment like dozers and excavators,” they claimed.

Likewise, the federation has also demanded their representation in the Investment Board. The government had formed the board last month to carry out activities for Investment Year 2012-13, including foreign direct investment.

source: The Himalayan Times, 25 Feb 2012