Print Edition - 2014-12-06 | MONEY
Construction expo opens with eye on dev projects
Dec 5, 2014-
CE Construction Nepa ConXpo 2014 threw open its doors on Friday with the aim of promoting the construction industry and informing the general public about the importance of development projects.
Organised by the Federation of Contractors’ Associations of Nepal (FCAN) at Bhrikuti Mandap, the fair contains 69 stalls of domestic and overseas companies related to pipes and fittings, cement, paint, solar thermal energy, water proofing, safety rescue and fire fighting, construction and mining equipment, latest technology materials and services, among others.
Minister for Physical Infrastructure and Transport Bimalendra Nidhi inaugurated the event. Speaking at the opening ceremony, Nidhi said the time had come for boosting investment in the country which would ensure an increased market for construction materials.
“More hydropower projects and cement factories are coming up, and the real estate sector is also reviving which is a very good sign for the construction industry,” said Nidhi.
In response, contractors expressed concern at the slow pace of development expenditure which has impeded prospects for the construction industry. As of December 4, only 7.21 percent of the budget allocated for capital expenditure had been spent.
“The construction industry would see better performance if 30 percent of the work had been done by mid-December, but the government has not even called for tenders yet,” said Jaya Ram Lamichhane, president of FCAN.
He added that construction activities had not picked up speed as desired in the last fiscal year with the activities largely confined to the road expansion drive in the Kathmandu valley and elsewhere. However, contractors expect the construction industry to see better days ahead with increased investment commitments in hydropower and the cement industry.
Project development agreements have been signed for the 900 MW Upper Karnali Hydro Project and the 900 MW Arun II Project. Similarly, a power trade agreement has been concluded with India which has revived hopes for increased investment in the country’s hydropower sector.
Likewise, Investment Board Nepal has approved a Rs 40 billion investment proposal submitted by Reliance Cement Industries, India.
“The increased investment in cement, real estate and hydropower show good prospects for dealers of construction equipment in the country,” said Shyam Krishna Khadgi, assistant general manager of sales at MAW Enterprises, the authorised distributor of JCB in Nepal.
The stall of MAW Enterprises at the expo contains a wide range of heavy equipment. The company has also launched the JCB 3DX4WD backhoe loader. “We aim to see a 40 percent growth in sales of heavy equipment,” he added.
The fair organiser has expected 40,000 visitors including 25,000 business visitors and transactions of Rs 100 million. The expo will run through Tuesday, and the price of an entrance ticket has been fixed at Rs 25.
Published: 06-12-2014 09:05