Govt changes tack against political pressure

The government has decided to adopt a new policy on bridge constructions, under which it will soon segregate the total demand for construction of bridges under different categories and prioritize only bridges that are genuinely important and needed. 

The new initiative has been taken mainly because the haphazard construction of local roads in different election constituencies in the interest of politicial leaders started generating pressure on the government to build bridges on such roads as well. 

"Given the soaring demand for construction of bridges on such politically-inspired roads, we are neither able to focus properly on the construction of strategic and significant bridges nor ensure that the budget allocated for bridges is used meaningfully," said a source at the Ministry of Physical Planning and Works (MoPPW). 

Given such a situation, the government had decided to adopt a more efficient Bridge Management System (BMS) for the prioritization of bridge constructions. With support from the World Bank it has already developed software for BMS, which will rank all the demands for bridges received from different parts of the country after analyzing the ground realities and strategic importance. 

"BSM is advanced technology. It will help us prioritize the necessity of bridges in any given area," Krityanand Thakur, project chief at the Bridge Project at the Department of Roads (DoR), told Republica. He added that it will for the first time establish a standard assessment and prioritization system in the country. 

Adoption of the new system will enable DoR to systematically handle undue pressure coming from political leaders to construct bridges in their own constituencies. If their needs prove genuine, their requests will be picked up, otherwise not.

"We were compelled to use 75 percent of the total budget for bridge projects allocated this year to implement projects that political leaders pressed for," said the same source, indicating that only 25 percent of about Rs 4.6 billion that MoPPW spent so far has gone into the construction of important bridges.

Officials said they are planning to implement the new system from the upcoming fiscal year. However, MoPPW will be able to implement its decision only if the government and the World Bank ink a roads project agreement within this fiscal year. "The World Bank has agreed to provide from next fiscal year a certain percent of the total required cost for the construction of bridges that fall within the national strategic road network," Thakur said. 

In order to avoid undue political pressure, which dilutes DoR´s focus, the government has also decided to task it only with the development of bridges in the national strategic road network. "DoR will not be handling bridges on local roads that have just been laid out in different electoral constituencies," Thakur said.

Govt slashes first installment for contractors to control misuse

Construction companies that secure government projects through bidding process will now see the first installment amount, which they receive from the state, slashed to half, as the the Ministry of Physical Planning and Works (MoPPW) clamps down on growing practice of misusing funds for personal purpose.

The ministry introduced the measure after detecting multiple cases of misuse of financial resources by construction companies, especially in the roads sector.

According to Shyam Kharel, head of the Kathmandu Valley Road Improvement Project (KVRIP), contractors who win government projects through tender will get only 10 percent of the total cost of the project in first installment. Previously, government used to provide 20 percent of the total cost to companies just after they secured the project.

"We will distribute remaining amount only after the contractor shows satisfactory performance,” Kharel said. "This will help us expedite project implementation." Initially, this measure will apply for road projects in Kathmandu valley. KVRIP, which is handling 6 road projects within the valley, had consulted with the MoPPW before introducing the measure.

The ministry approved the KVRIP´s proposal. "Many of the construction companies misuse the money they get after winning tenders to buy land or invest in the real estate sector," Tulsi Prasad Sitaula, secretary of the ministry, said. "We believe that after taking this measure, there would be proper utilization of government resources in the particular project."

Secretary Sitaula said the measure was taken mainly for two reasons, one for proper utilization of budget and second for effective implementation. "We have come to know few contractors involved in misusing the money allocated by government for their personal purpose," he said. However, Sitaula declined to disclose the names of the contractors who were found misusing the resources.

According to the Public Procurement Act 2007, the government can allocate up to 20 percent of the total cost of the project to the winning party. "However, from now on we will allocate only 10 percent of total cost to establish the required logistics," Kharel said. The construction companies who win tenders will have to submit the work progress report and financial documents in order to get the further allocation of budget.

Importantly, according to Sitaula, this measure will also help increase capital expenditure. "Once we tighten budget allocation, construction companies have to work in a satisfactory pace since they get money only after accomplishing the certain target of work," he said.

KVRIP, which has the responsibility of implementing six projects including Dillibazar to Maharajgunj, Kalikasthan and Araniko Highway, is the first agency of government to take the measure. "This rule definitely helps us to reduce the rate of corruption and mismanagement of resources," Kharel claimed.