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, Cooperativa Muratori e Cementisti (CMC) di Ravenna, although it is the company's responsibility to make the payment as per the agreement after the works are done within the time.
FCAN general secretary Roshan Dahal said in a press release Monday 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.
FCAN has urged the government to ensure that the payment is done by the CMC company or through any other source, fulfilling its role as a guardian.
It has also drawn the attention of the government to involve the domestic contractors in such big projects in future learning a lesson from the Melamchi water Supply Project's condition when a foreign contractor that is given the responsibility of constructing big projects quits in the middle.
