Koshi Province construction halted due to rising fuel and material costs

The infrastructure development sector in Koshi Province is facing a severe crisis due to the significant increase in the prices of fuel and construction materials, driven by ongoing conflicts in the Middle East.

At a press conference in Biratnagar, construction entrepreneurs publicly shared their concerns. They stated that the continuous rise in fuel prices and the shortage of construction materials have made it impossible to proceed with their work, leaving them with no option but to halt construction activities.

In this context, a team led by Janasewak Bhandari, the president of the Federation of Construction Entrepreneurs of Koshi Province, submitted a memorandum to Chief Minister Hikmat Kumar Karki. The entrepreneurs informed that the prices of fuels like diesel, petrol, and kerosene, as well as construction materials such as bitumen, cement, and iron rods, have surged abnormally, and these materials are becoming scarce in the market.

Expressing concern that the price hikes and shortages could devastate the construction industry, they have drawn the government’s attention to the issue. Upon receiving the memorandum, Chief Minister Karki assured that the provincial government is seriously considering the crisis in the construction sector and committed to prioritizing the study of the entrepreneurs’ demands and taking necessary steps for resolution.

The entrepreneurs’ team also met with Physical Infrastructure Development Minister Pradeep Sunuwar to present their demands. They urged the government to immediately issue new ‘price adjustment guidelines’ and apply price adjustments to all ongoing contracts to provide relief.