December 21: It was widely anticipated that the development and construction works would speed up after the general election. However, that has not happened even a month after the November 20 election.

The tender bids called by the government itself is less at the moment compared to the past, and due to the lack of bilateral agreements for foreign loans and grants, there has been a delay in the disbursement of the construction budget.

It has been one month since the election but the construction works are to gather pace. 

Ravi Singh, president of the Federation of Contractors Association of Nepal, said that although construction should speed up, the situation is not conducive.

He said that the government has not released the payment fully. Although, the work has started on a minimal basis, the results are not visible, added Singh.

"Earlier, the government used to release mobilization fund," said Singh, "Now, that kind of money is not available." 

Singh said that the construction business has been hit because the banks do not give loans and the mobilization funds are not given by the government.

According to him, the budget allocated for development works is in the state treasury. Likewise, he added that the contractors are struggling get loan from the banks. Even if they get loans, it would be problematic for them because of the high interest rates, added Singh.

Singh further said that the demand for construction materials has decreased due to the decline in construction works. On the other hand, they have to pay double the price to purchase fuel. 

"Earlier, it used to cost Rs 900,000 to buy a full tanker of fuel, but now we have to pay Rs 1.8 million," he said.