Kathmandu. Minister for Infrastructure Development Sunil Lamsal has said that the government was ready to address the problems raised by the contractors.

In today’s meeting of Infrastructure Development Committee under the House of Representatives, Minister Lamsal admitted that the construction sector was affected by economic pressure, price hike and payment problems.

In the meeting, contractors complained that they have not been paid for the completed works, cost escalation due to exorbitant price hike and complexity in extending the deadline. In response, Minister Lamsal said that the government was taking initiatives to resolve the problem through legal and policy reforms.

Minister Lamsal made it clear that no delay and substandard works would be acceptable in the construction sector and directed the contractors to complete the construction works on the stipulated time.

“Entrepreneurs should work in a responsible way by formulating their own action plan,” he said. Stating that price hike of construction materials including diesel has had a big impact on the project, Minister Lamsal said that the government was serious about the problems faced by the entrepreneurs although the ministry has incurred loss of around Rs 37 billion.

According to him, the issue of price adjustment and extension is being studied on the basis of the index of the Nepal Rastra Bank. He said that the problem would be resolved by amending the laws for some projects if necessary.

Stating that the state and the contractor are partners in development, Minister Lamsal said that the timely completion of development projects could only be achieved through coordination and cooperation. He, however, warned that the state would take strict action against the businessmen who were negligent and unnecessarily delayed the project.