July 26: The Nepal Infrastructure Construction Company, with an authorized capital of Rs 10 billion and issued capital of Rs 5 billion, established four years ago under the full ownership of the government, has no work to do at all. This company, which was established on July 10, 2019 by the then KP Sharma Oli-led government to work in the field of construction, has gone out of business due to the lack of a clear policy. So far, it has not been able to do any other work in the field of construction apart from general consultation. 

The company has been given the right to engage in almost all areas of infrastructure development. The then government had established the company with the aim of undertaking construction works related to roads, airports, expressways, highways, railways, dry ports, harbors, canals, pipelines, substations. It seems that this company is not among the priorities of the successive governments formed after the fall of the Oli government. This company is lagging behind in achieving its objectives due to the lack of a clear policy of the government. The government officials admit that the company has not been able to produce results.

Rajesh Kumar Thapa, joint secretary at the Ministry of Physical Infrastructure and Transport, who is also the secretary of the company, says that the existing law does not allow the company to move forward as per the objective.

According to him, this state-owned company was established with the aim of engaging in procurement and construction work of public concern at any time. However, as the current Public Procurement Act stipulates that no company can get any work without competition, it has become difficult for this company to bag contracts.

“The Ministry of Physical Infrastructure has already taken the initiative for amending the Public Procurement Act. After removing the policy hurdles, the company will be able to work in the field of construction as per its objective,” he said in a conversation with New Business Age. 

Chief Executive Officer (CEO) of Nepal Infrastructure Construction Company, Devendra KC admitted that the company was unable to achieve results due to the lack of policy.

According to him, the company can work only if the legal arrangements in the Public Procurement Act are amended. Currently, the company has only done general works related to consultation. No work related to construction has been done.

KC said that there is some hope because a bill to amend Some Nepal Acts has been registered in the parliament to remove legal complications. 

The bill proposes entrusting the construction company with work under special circumstances when it is required to undertake construction works immediately and it not possible to indulge in the bidding process.

The bill registered in the Parliament also proposes allowing the company to carry out all types of construction works including construction of buildings, factories, airports, expressways, highways, roads, access roads, railways, dry ports, bridges, tunnels, waterways, and ropeways among others.

Arrangements are being made to allow the construction of hangars, ports, and coastal roads as well. Similarly, construction of canals, pipelines, reservoirs, water tanks, ponds, dams, civil engineering construction works, workshops, garages, hotels, warehouses, and cold storage facilities are also to be given to the company. 

In addition legal arrangements are being made so that this company can carry out the construction of markets, shops, towns, residences, new settlements and also get involved in integrated urban development, urban infrastructure development, housing development and land consolidation projects, along with urban regeneration, well drilling and mining, hydroelectric power plant construction, flood control, recreational facilities, swimming ponds, fishing ponds, public, industrial, agricultural and all other types of buildings and useful facilities.

The government had previously established the National Construction Company Nepal (NCCN), which was canceled after six consecutive years of losses. The interesting part is that the current infrastructure construction company is running profitably by doing consulting work with nine employees without any construction work or even buying equipment.