Backtracking the government policy of keeping itself distance from business, the KP Sharma Oli-led government has opened its own construction company ‘Nepal Infrastructure Construction Company’ (NICC).
The government had established National Construction Company Nepal (NCCN) in 1961 but since it faced continuous losses, the government closed it down in 2010. The private sector claimed that the government move – that suited 5 decades ago – will promote corruption as most of the government owned corporations have been in red since long.
The government has registered ‘Nepal Infrastructure Construction Company at the Office of the Company Registrar saying that the private construction companies have been continuously causing delays in public construction works citing various reasons. But the move – some 50 years older – of the then King Mahendra era, has surprised the private sector as the Constitution of Nepal has accepted the private sector as the growth engine of the economy. But the government claimed that the establishment of its own construction company will force the private construction companies to be more diligent and accelerate development works. “The NICC will work in tunnel construction and large size construction activities, including all types of government construction works,” the government claimed, adding that the company with authorised capital of Rs 10 billion and issued capital worth Rs 3 billion has Finance Ministry, Energy Ministry, Physical Infrastructure and Transport Ministry and Urban Development Ministry are the institutional shareholders of NICC with 7.5 million shares.
The government-owned construction company with executive rights to execute major construction works will construct roads, airports, fast track roads, highways, dry ports, ports, canals, pipelines, substations and transmission lines, the ministry added.
The NICC will also conduct studies related to the engineering aspects of roads, airports, fast track roads, highways, dry ports, ports, canals, pipelines, substations and transmission lines including their pre-feasibility, feasibility, investigation, design, management, detailed feasibility study, detailed project report and environment impact assessment.
Though, the government has claimed that the NICC has not been established to compete with the private sector and focus on accelerating the government initiated projects, the private sector suspects that it will further delay infrastructure projects and promote corruption in the construction sector.
The company will have seven directors in its board – 3 founding members from the Energy, Physical Infrastructure and Urban Development Ministries and 4 representatives from Industry, Commerce and Supplies; Law, Justice and Parliamentary Affairs and Drinking Water Ministries – apart from employees hired through open competition by the government.
The government had established National Construction Company Nepal (NCCN) in 1961 but since it faced continuous losses, the government closed it down in 2010. The private sector claimed that the government move – that suited 5 decades ago – will promote corruption as most of the government owned corporations have been in red since long.
The government has registered ‘Nepal Infrastructure Construction Company at the Office of the Company Registrar saying that the private construction companies have been continuously causing delays in public construction works citing various reasons. But the move – some 50 years older – of the then King Mahendra era, has surprised the private sector as the Constitution of Nepal has accepted the private sector as the growth engine of the economy. But the government claimed that the establishment of its own construction company will force the private construction companies to be more diligent and accelerate development works. “The NICC will work in tunnel construction and large size construction activities, including all types of government construction works,” the government claimed, adding that the company with authorised capital of Rs 10 billion and issued capital worth Rs 3 billion has Finance Ministry, Energy Ministry, Physical Infrastructure and Transport Ministry and Urban Development Ministry are the institutional shareholders of NICC with 7.5 million shares.
The government-owned construction company with executive rights to execute major construction works will construct roads, airports, fast track roads, highways, dry ports, ports, canals, pipelines, substations and transmission lines, the ministry added.
The NICC will also conduct studies related to the engineering aspects of roads, airports, fast track roads, highways, dry ports, ports, canals, pipelines, substations and transmission lines including their pre-feasibility, feasibility, investigation, design, management, detailed feasibility study, detailed project report and environment impact assessment.
Though, the government has claimed that the NICC has not been established to compete with the private sector and focus on accelerating the government initiated projects, the private sector suspects that it will further delay infrastructure projects and promote corruption in the construction sector.
The company will have seven directors in its board – 3 founding members from the Energy, Physical Infrastructure and Urban Development Ministries and 4 representatives from Industry, Commerce and Supplies; Law, Justice and Parliamentary Affairs and Drinking Water Ministries – apart from employees hired through open competition by the government.
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