July 11: The government has registered its own construction company that will undertake construction of roads, bridges, tunnels and other infrastructure.
The Ministry of Physical Planning and Infrastructure on Wednesday registered the company named as Nepal Infrastructure Development Company with the Company Registrar’s Office. The government has set up the company with an issued capital of Rs 3 billion.
The finance ministry, ministries of energy; physical infrastructure and transportation; and urban development are the promoters of the company.
Those ministries will own up to 7.5 million units of shares of the company.
The company has been given the responsibility of being involved in all kinds of infrastructural development works.
According to government authorities, the company will be involved in the construction of roads, airports, fast-tracks, railway tracks, dry ports, irrigation projects, pipelines, sub-stations, among others.
The state-owned construction company has been set up nine years after dissolving the National Construction Company Nepal (NCCN) previously owned by the government.
The government decided to start its own construction company due to the delay in construction by private builders leading to many unfinished projects. The government has also pointed out to the poor quality of infrastructures undertaken by private companies.