Bagmati construction halt over fuel costs
- The Federation of Contractors’ Association of Nepal’s Bagmati chapter said projects across the province have nearly stopped after fuel and material prices spiked. - At an April 26 press conference in Hetauda, President Chhatra Bahadur Tamang sought deadline extensions and project-wise price-adjustment Directive-2 from government. - The dispute follows weeks of nationwide warnings that oil-linked jumps in bitumen, cement and steel costs were freezing works. (risingnepaldaily.com)
Construction work across Nepal’s Bagmati Province has nearly ground to a halt after contractors said fuel and material prices jumped too far to absorb. (risingnepaldaily.com) (english.ratopati.com) The Federation of Contractors’ Association of Nepal, Bagmati Province, made the announcement at a press conference in Hetauda on Sunday, April 26. Its Bagmati president, Chhatra Bahadur Tamang, said shortages and price spikes had pushed the industry to the brink. (english.ratopati.com) (risingnepaldaily.com) Tamang said diesel, petrol, kerosene, bitumen, cement and steel rods had all become more expensive, and he tied the surge to conflict in West Asia. The federation asked the government to extend deadlines on all contracts and issue a new project-wise price-adjustment directive. (english.ratopati.com) (risingnepaldaily.com) The complaint is not just about one province. Bagmati’s contractors said projects ranging from national pride schemes to smaller local jobs were being hit by the same squeeze. (english.ratopati.com) (risingnepaldaily.com) Senior Vice-President Rajkumar Budhathoki said the pressure was landing during the peak construction season, when delays are hardest to recover. He said the burden was falling on contractors, workers and related industries at the same time. (risingnepaldaily.com) The federation also said Nepal Rastra Bank’s price index was not capturing what contractors were paying in the market. Tamang said official formulas were showing declines even as actual input costs were rising. (risingnepaldaily.com) (english.ratopati.com) That argument has been building for weeks. In March, Federation of Contractors’ Associations of Nepal president Ravi Singh said crude had reached about $113 a barrel and warned that construction nationwide was nearing a standstill. (english.ratopati.com) Singh said bitumen had risen to about NPR 130 per kilogram from NPR 85, while rebar had climbed to NPR 85 from NPR 72. He also said cement prices had increased, and accused producers of cutting supply and raising rates. (english.ratopati.com) Bagmati’s contractors say they have been warning the government for two months and have received only verbal assurances. Their latest demand is simple: adjust contract prices, extend deadlines, and keep projects from slipping deeper into stoppage. (risingnepaldaily.com) (english.ratopati.com)
