Kathmandu. KATHMANDU: Nepal Chamber of Commerce (NCC) has drawn the attention of the government to the increasing cost of construction, delayed payment and administrative complexities in the construction sector.

In a press release on Thursday, the chamber said that the impact of the Middle East war has led to the continuous increase in the cost of construction materials, diesel and transportation. According to a press release issued by NCC President Kamalesh Kumar Agrawal, the NCC has said that the problem has aggravated due to the lack of effective implementation of the price adjustment provisions in the Public Procurement Act and Regulations.

According to the Chamber, the development works have been affected due to cost escalation, delay in timely payment and administrative hassles. It has also affected other businesses related to construction, including cement, steel, rods, pipes and wire industries.

Nepal Chamber of Commerce (NCC) has urged the government to immediately implement necessary policies and decisions to prevent the construction sector from plunging into crisis. The Chamber has also stressed on the need to provide relief to the contractors by effectively implementing the legal provisions related to price adjustment.

Likewise, the NCC has suggested the government to make long-term plan prioritizing road, energy, water resources, urban development and industrial infrastructure. According to the Chamber, although infrastructure development has been prioritized, the situation of exodus of contractors is worrisome.

The NCC has expressed the belief that achieving the goals of economic development would be easier if an environment of cooperation and trust is maintained between the government and private sector.