KATHMANDU, May 11: The convention halls, built with millions of rupees, beyond necessity, are now lying unused because they cannot be operated commercially. It has been almost three years since the inauguration of the convention halls built in Butwal and Ghorahi, but they are still not functioning commercially. Some of the convention halls built in other parts of the country have not been able to operate at all, while others are running at a loss.
Despite spending a large amount of public funds to build these halls and view towers, they are not operating commercially, and every year the government has to spend millions of rupees for their management. The idea of generating profit by operating them seems far from reality.
The official inauguration of the International Convention Center in Butwal, which was built at a cost of Rs 1.11 billion, was done by the then Prime Minister Sher Bahadur Deuba in the month of Bhadra 2079 (mid-August to mid-September 2022).
The convention hall has not yet been used commercially, according to Dharmendra Panthi, the project head of the Butwal International Convention Center (BICC).
According to him, at least Rs 300,000 are spent every month just to keep the hall in operation. “The convention hall is used occasionally, but it has not been used for commercial purposes,” Panthi said, “Due to the lack of commercial use, we end up spending up to Rs 300,000 every month.”
New assembly halls keep popping up while old ones see little us...
The BICC has informed the Ministry of Urban Development about this issue.
Similarly, the then Minister of Urban Development, Metmani Chaudhary, inaugurated another grand convention hall in Ghorahi, Dang, in the month of Shrawan 2079 (Mid-July to mid-August 2022). However, the convention hall has still not been able to operate commercially, according to an employee from the Project Office of Urban Development and Building Construction, Dang, under the Ministry of Urban Development.
He stated, “The convention hall has not been used. Even though it hasn’t been used, operational costs are still being incurred, and there has been no profit.”
Due to the non-operation of the 700-seat capacity convention hall, management costs have been rising, surpassing the income.
According to sources from the Ministry of Urban Development, around 50 small and large convention halls have been constructed across the country with the assistance of the federal government.
The Ministry has developed an operational guideline for convention halls and special structures. According to this guideline, a committee will be formed under the leadership of the Ministry's Secretary to operate six special structures, including the Butwal and Damak view towers, Godawari Convention Hall, Dharahara, and the International Convention Center in New Baneshwor. The committee will oversee the operation of these six structures, and if necessary, arrangements will be made to lease them to the private sector.
In response to the government's decision, Tej Bahadur Rai, the former head of the International Convention Center in New Baneshwor, filed a lawsuit in court, claiming that the decision was unfair to him. The case is currently under judicial review.
Before the government created the operational guideline, the responsibility of operating the convention hall built in Godawari, Lalitpur, was given to the International Conference Development Committee. The convention hall, built at a cost of Rs 810 million, was first inaugurated by the then Prime Minister KP Sharma Oli on October 22, 2019. He also officially opened the hall on May 14, 2021. However, the government has not been able to generate any profit from this convention hall either.
Convention halls have been built in various places by spending the budget allocated for infrastructure development. After complaints arose about the hasty construction of convention halls beyond necessity, the Ministry of Urban Development decided three years ago not to plan for any more. However, the government was unable to continue that decision a year later.
While the 700-seat capacity convention hall in Ghorahi, Dang, was still under construction, the then Minister of Urban Development, Chaudhary, laid the foundation stone for a new convention hall in Lamahi, Dang, in Shrawan 2079. After that, the newly appointed Ministers of Urban Development have planned to build new convention halls impulsively.
According to an employee of the Ministry, the funds allocated for urban development and physical infrastructure in municipalities, which should be used for building ponds, lakes, bus parks, roads, and other physical structures, are instead being spent on the construction of convention halls. “Building convention halls without study and groundwork using the budget allocated for physical infrastructure is a misuse of funds,” said a senior official from the ministry. “It has been easy for ministers to lay the foundation stones for convention halls to make it appear as if they are doing something in their respective areas.”
