Construction Industry In Nepal

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This section of the master’s thesis is an empirical part that discusses the data collected from the sources and analyses formulating a strategic plan for the case company. CONSTRUTION INDUSTRY IN NEPAL The construction industry in Nepal is significant as its contribution to GDP is about 10% which is one of the largest single contributions after agriculture. About 70% of the national gross capital formation also comes from this sector. Table: Composition of GDP in Nepal from 1994 to 2002 in construction sector (in percent) Description 1994 1995 1996 1997 1998 1999 2000 2001 2002 Construction 11.0 10.90 10.86 10.52 10.08 10.21 10.06 10.43 10.36 Source: CBS, National Accounts of Nepal 2003 Among the total labor force of non-agricultural…show more content…
A study conducted by GEFONT in 2003 has revealed the fact that ¾ th of the workers in this sector are unskilled. Table: Category of the Construction Workers by Skill Category Male Female Unskilled 23.5 58.8 Semi-skilled 23.5 35.3 Skilled 41.2 2.9 Highly skilled 11.8 2.9 Source: GEFONT, Search for Alternatives, 2003 In order to obtain a working license for carrying out any public civil engineering projects, an entrepreneur should first submit an application to the District Development Committee (DDC). DDC then analyzes the document of the applicant company focusing mainly on its financial and technical qualification. Once DDC approves the application, it is forwarded to the government of Nepal for issuing the appropriate class license. Construction companies are categorized into four classes by the government of Nepal that is A, B, C, and D. Table: Classification of construction firms in 1974 and 1999 as per Bidding…show more content…
of Registered firms of Class A, B, C & D in various years Year Class A Class B Class C Class D Total 1977 4 14 29 47 94 1987 25 210 575 810 1620 1997 112 84 938 1124 2258 2006 143 130 1400 10000 11673 2012 194 322 1301 11000 12817 Generally, there are many sectors in which any firms can take part in construction work of interested area after meeting specific criteria of qualification. But there has also been argue that there is a need of Building Contractor, Road Contractor, Pavement Contractor, Bridge Contractor, Tunnel contractor, Hydropower Contractor or similar specialist contractor so as to enhance at competitive cost also. Here are some of the major infrastructure projects done in the year 2013/2014 and the budget allocated for the projects. Table: Budget for Fiscal year 2013/2014 in Major Infrastructure Projects S. No Name of Projects Budget for Fiscal Year 2013/2014 (In Billion NRs) 1. Mid Hill Highway 1.9 2. East-West Railway 1.4 3. Melamchi 5.4 4. Sikta Irrigation 1.24 5. Babai Irrigation 0.45 6. KTM Road Expansion 1.81 7. Rural Drinking Water 3.99 8. Energy Sector 30 9. Transmission Lines 1.3 10. Renewable Energy

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