The Federation of Contractors’ Associations of Nepal (FCAN) has expressed its serious concern over the disruption of work of Melamchi Water Supply Project, a national pride project, in its last phase and the halt in payment.
FCAN said the Nepali subsidiary contractors, suppliers and workers have not yet been paid in billions of rupees in due by the main Italian contractor of the project, CMC di Ravenna, although it is the company’s responsibility to make the payment as per the agreement after the works are done within time.
FCAN general secretary Roshan Dahal said in a press statement that the Nepali construction companies were facing a big loss as CMC has not made the payment to them for the works they have carried out.
According to the federation, the suppliers of construction materials, workers and local traders are in a penniless situation, losing their collateral which they had deposited in bank while taking loan as they are not able to repay the loans and the interest due to the failure of CMC to pay them.
Rastriya Samachar Samiti (RSS) reported that FCAN has urged the government to ensure that the payment is done by CMC or through any other source, fulfilling its role as a guardian.
FCAN has also drawn the attention of the government to involve domestic contractors in such big projects. The federation said that the government should learn a lesson from the Melamchi Water Supply Project.