March 14: Exorbitant bank interest rates and closure of the rivers and streams for raw materials for the past two years have hit small contractors hard in Chitwan. Shortages of raw materials and high bank interest rates have pushed small construction entrepreneurs at the point of shutting down their business. 

Federation of Contractors’ Associations of Nepal Chitwan Chapter General Secretary Puskar Adhikari said out of 400 small contractors 390 are small  in the district. The total number of contractors including those not affiliated to the FCAN is around 1000 in Chitwan.

If the same condition continues, more than 75 per cent contractors will wash their hands from construction sector, said Adhikari. Contractors say that soaring bank interest rates and increased fuel prices have kept the construction business in a crisis, forcing them to switch their business. 

Adhikari complained that  around 100 contractors had been unable to give continuity to their business. He urged the the government to solve small contractors' problems at the earliest. 

It is learnt that contractors have to pay Rs 5,000 more for per tipper of river-borne raw materials compared to the past as the government is yet to open the contract for river-borne materials in the district. 

Troubles of the contractors do not end here. Traffic police have halted the plying of vehicles loaded with contruction materials  from 8:00 am to 11:00 am and 4:00 pm to 8:00 pm to ease the traffic. This has kept construction entrepreneurs from finishing the their work on time, according to contractors.

Federation of Contractors’ Associations of Nepal Chitwan Chairman Keshav Lamichhane said that not opening the rivers and streams for raw materials had added the troubles for the contractors.

“Government policy has adversely affected both small and big contractors,” Lamichhane said. He argued that concerned agencies’ failure to issue payment for even the timely completed work had aggravated the plight of contractors.

Bharatpur Metropolitan City Deputy mayor Chitrasen Adhikari says that construction work has to be completed within the deadline in line with the contract. He admitted high bank interest rates and paucity of the raw materials had troubled contractors.  He, however, argued that some contractors would always look for excuses not to finish the work within the slated timeframe.

“Bharatpur Metropolis has taken an action against 17 construction companies for failing to complete work within deadline by making excuses not to finish the work,” Adhikari said. He suggested both the government and contractors to fulfill their duties responsibly.