Government to Open State Owned Construction Company

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Government to Open State Owned Construction Company

July 5: The government of Nepal is preparing to start its own construction company.

According to informed sources, the KP Oli-led government is preparing to open a state-owned construction company nine years after dissolving the National Construction Company Nepal (NCCN) previously owned by the state. 

The government has 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.  

Speaking at the development committee of the parliament on Thursday, Minister for Infrastructure Development and Transportation Raghubir Mahaseth said that the government will give take concrete steps for the establishment of government-owned construction company by next week.   

“The establishment of the construction company will address the problem of delay and complications in development projects,” the minister said.

Previously, the government had dissolved the NCCN in 2013 after the company went in loss for six consecutive years. 

The NCCN, which was established in 1961, used to develop government infrastructure previously.

The construction of national pride projects including Melamchi Water Supply Project  has been delayed due to poor work performance by the contractors. The delay in completion of the project has been caused extra financial burden to the state coffers.

Numerous other national pride projects have been affected by delay in completion of the work and negligence on part of the contractors. Contractors even after receiving the mobilization fund in advance from the government do not work on time. Likewise, they undertake projects which are beyond their capacity resulting in the poor quality of work.

Infrastructure experts have welcomed the government’s proposal of establishing a state-owned construction company.

Former secretary Kishor Thapa considers the proposal as the right alternative to replace the careless and negligent private construction companies (contractors).

“Nepal Army is constructing the “Fast Track” due to the absence of government-owned construction company,” he added.   

 

 

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