DAMAK, April 7: Concerns are being raised regarding the justification for the construction of a business tower valued at over Rs 2 billion built by the government in Damak. The building is already complete and is awaiting inauguration but no party has shown any interest in utilizing the business tower for commercial purposes, fueling concerns that it may remain vacant post-inauguration.
Maniram Gelal, the secretary for the Ministry of Urban Development, stated the construction of the business tower is complete. The contractor company also claimed that the completion of all works related to the tower, which was constructed under the direction of CPN-UML Chairman and former Prime Minister KP Sharma Oli.
The tower, standing at 18 storeys, features an elevator that serves up to 16 floors, all designated for commercial purposes, while the remaining top two floors offer sightseeing opportunities.
The structure of the tower is designed in such a way that electricity cannot be turned on and off on all 18 floors at once. Each floor has a separate system to turn on and off the electricity. It is structured with the intention that all the floors will be used commercially. So far, not a single floor has been booked for commercial purposes. Neither has anyone shown formal interest in booking.
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Sudeep Poudel, project manager of Urban Development and Building Construction, Jhapa said that so far no one has formally taken the initiative to book any floor of the business tower.
“While there have been informal proposals, no formal interest in booking a floor for business purposes has emerged,” he said. Currently, the tower attracts visitors from afar for selfies, but not for interior visits.
This tower is situated about 6 km west of Damak Bazaar. Therefore, it is estimated to be expensive to manage and operate. A senior official for the Urban Development and Building Department said that since it is about 6 km west of the established market in Damak, therefore, it is estimated to be expensive to manage and operate businesses from the tower. Moreover, there is less chance of it generating profit any time soon even if a shopping mall, a gym hall, a hospital, or a beauty parlor is built there.
The then Minister for Urban Development, Sita Gurung was scheduled to inaugurate the business tower on February 26. For this, the ministry had already printed invitation cards. At that time, the construction of the tower was only 95 percent complete.
The ministry backtracked it after concerns were raised stating that the work of the business tower was not completed and that it was too early to open it. Even now, the ministry is in a hurry to inaugurate the tower. Secretary of the Ministry Gelal said that the decision to open the tower has not been made yet.
Sources within the ministry said that former Prime Minister and UML Chairman KP Sharma Oli is eager to inaugurate the tower, a 'dream project' in his home district of Jhapa. The decision on who will manage and operate the tower post-inauguration remains undecided, with the construction company still awaiting payment of around Rs 170 million.
Sarjal Bidari, project manager for Om Sairam Construction, said that the inauguration should only proceed once the government has settled all payments with the contractor company. He said that the government should not rush to inaugurate the tower without paying the contractor.
Oli, during his first term as prime minister, announced the construction of a business tower in Jhapa in 2072 BS with its foundation stone laid during his second term. A Chinese company, ZCGIEC, in collaboration with Ashish and Om Sairam JV received the contract to construct the 21-story view tower, with 18 concrete floors and an additional three metal floors on the top.
It is spread over about five bighas of land in Damak Municipality-3. Initially on July 12, 2019, it was agreed that the project would be completed by July 11, 2021, at a cost of Rs 1.56 billion. After the construction was not completed within the stipulated time, the deadline was extended till July 12, 2023.
Even after that, the deadline was extended for the third time when the work was not completed. When the deadline was extended for the second time, it cost an additional Rs 100 million and the revised contract soared to Rs 1.66 billion.
The Auditor General's report questioned the project’s feasibility, drawing the attention of the government to ensure such projects are demand-driven to guarantee a return on investment.
