The Nepal Construction Entrepreneurs Federation has submitted a memorandum and staged a sit-in protest at the Road Department and the Department of Water Resources, opposing the exorbitant price hikes of fuel and construction materials. Federation General Secretary Shivahari Ghimire stated that entrepreneurs are facing severe crises due to these price increases and emphasized the need to adjust contract prices accordingly. The federation has urged the government to extend deadlines for halted projects and create an environment to continue work until Ashadh 2084 (mid-2027), along with clear budget headings and payment arrangements in the upcoming fiscal budget. Kathmandu, 31 Baisakh.
In response to the sharp increases in prices of fuel and other construction materials, the Nepal Construction Entrepreneurs Federation not only submitted a memorandum but also held a sit-in protest at the Road Department and the Department of Water Resources. Despite the fact that all projects across the country are on the verge of being suspended due to skyrocketing costs, the government has shown little concern. Consequently, the federation and its affiliated member coordination committees organized the protest on Thursday. They also handed over letters of concern to Vijaya Jaisi, Director General of the Road Department, and Dr. Santosh Kaini, Deputy Director of the Irrigation Department.
Federation General Secretary Shivahari Ghimire expressed that the federation resorted to protest as the government has yet to address their demands. He said, “Construction entrepreneurs are in a state of extreme distress due to price hikes. Therefore, contract prices must be adjusted according to the increased market rates.” He also appealed for extensions on deadlines for suspended projects to facilitate work continuation until Ashadh 2084. Furthermore, he called for clear budget headings and proper payment provisions for project evaluations in the forthcoming budget.
During ongoing protests, Ghimire voiced concern over the ongoing harassment of entrepreneurs. He stated that investigations causing distress harm the investment environment. He noted, “Price adjustments must happen. To date, the issue remains unresolved. Entrepreneurs cannot endure these exorbitant costs.” He added that due to lack of proper government intervention on issues such as deadline extensions, bank guarantees, and insurance matters, they have been compelled to halt work.
