Mr. Jhanak Datta Khanal - cacci

Construction Industry in NepalJhanak D. KhanalPresidentHimalayan Builders and Engineers

Introduction• Engaged in construction ofinfrastructures, hydropower, irrigation,buildings and other real estateproperty.• Second largest employer of thecountry providing employmentopportunity not only to unemployedbut also to underemployed andseasonal workers.

History• The first engineering structure built was aniron bridge over river Bagmati in 1850.• First public water supply system laid inKathmandu valley in 1888.• New era of Nepalese construction industrystarted only after 1951.

• Plays important role in thedevelopment of infrastructure ,essential for the development of allother sectors.• Contributes approximately 10 % toGDP.• Mobilizes around 35 % of governmenttotal budget and 60 % of the nation'sdevelopment budget spent throughconstruction companies.• Creates employment opportunities toover a million people.Role of Construction Industryin National Economy

• Traditional RCC Constructionsystem predominant which is timeconsuming and costlier.• Brick and stone masonry is verycommon in most of the rural partsof Nepal.• Lack of technology as well as notusing proper tools and equipment,the overall construction process istedious. It takes around 9 to 12months to complete a normalresidential building (RCC structure).Construction Systems inNepal

Construction System Abroad• Use of pre‐fab materials andtechnology.• With advance technology and use ofproper tools and equipmentconstruction process is much fastermaking much less time period tocomplete a normal residence.• Common practice of using steelsections (I‐ beams, columns) and prestressedconcrete sections in place ofheavy RCC structures making high risestructures easily feasible.

Opportunities for foreign investment• Favorable weather through out theyear in almost every place of thecountry.• Development opportunities exist inalmost every sector.• Availability of skilled and semi‐skilledmanpower.• Availability of high qualityconstruction raw material such aslimestone quarries, aggregates, sand,raw water, etc.

Opportunities for foreign investment• Capacity of local construction companiesto absorb technical and managerialcapability from foreign companies.• Opportunities for BOOT/BOT in largeinfrastructure development.• Cost of project becomes less withintroduction of new technologies, toolsand equipments which gives high profitpercentage.• Low tax rates and repatriation of profitfor foreign construction companies.• Government policy on securinginvestment of foreign investors.

Prospects for NepaleseConstruction IndustryVast opportunities forinfrastructure building lies in ‐1.Tourism industry2.Roads and airports3.Hydropower and irrigation4.Real state industry5.Games/Sport industry6.Mass rapid transport industry7.Health care industry

• Cheap and dedicated skilled as well asunskilled labour force• High level qualified technicians• Mid level techniciansStrengths

Major challenges for construction companiesin Nepal‐•Lack of advance technology•Lack of equipment and tools•Experts who can develop new conceptsChallenges

CONCLUSIONNepal can achieve the goal of economicdevelopment only through development ofconstruction industry. With combined efforts, it ispossible to implement several large infrastructureprojects to upgrade the country as well as tosupport sustained national economic and socialdevelopment.

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