KATHMANDU, Sept 25: The Federation of Contractors' Associations of Nepal (FCAN) has drawn the government's attention to expedite the payment of their pending dues. On Wednesday, the FCAN submitted a memorandum to Acting Prime Minister and Minister for Urban Development, Prakash Man Singh, at Singha Durbar, urging swift payment of the outstanding amounts.
The FCAN has warned that since even the partial payments to contractors this fiscal year were made only from the allocated budget, there could be issues with payments for upcoming construction projects as well.
FCAN submits memo to Development Committee
While receiving the memorandum, Acting Prime Minister Singh acknowledged that contractors have faced many difficult challenges and expressed the government's commitment to resolving them. He mentioned that if necessary, the laws and regulations would be amended to create a more favorable environment for contractors.
FCAN President Rabi Singh said that the government's payment obligations to contractors for various projects have reached around Rs 45 billion. He complained that due to delays in payments, contractors have been unable to pay their bank loans, installments, and taxes owed to the state.
He stated that despite the outstanding payments, contractors usually receive them by the end of the fiscal year in mid-July, but this time, no payments have been made at all.
