Kathmandu. The Ministry of Infrastructure Development has decided to implement special price adjustment for the construction sector as per sub-section (1A) of Section 55 of the Public Procurement Act, 2063.
The Ministry informed about this through a press release today. In the case of petroleum products, bitumen, HDPE pipe, cement and rods, which have increased the price unnaturally due to the international war and disruption in the supply chain, special price adjustment will be made on the basis of actual and proven consumption in the public construction contracts that are in operation even after 15th March, 2082.
According to the ministry, contracts that do not have annual and price adjustment provisions will also be included in this provision if they meet the prescribed criteria. “In the case of contracts where price adjustment provision is made, only the remaining eligible amount will be provided as special price adjustment after deducting the price adjustment amount as per the prevailing provisions and agreements,” the statement said.
Under this provision, only the price rise caused by extraordinary circumstances will be addressed and not the general market fluctuations, the ministry said. Since the amount will be determined only on the basis of actual consumption, certified quantity and related prices, there will be no double profit or unnecessary payment.
“This decision has been taken with the objective of preventing the halt of construction work due to the extraordinary international situation, giving continuity to ongoing development projects and addressing imbalances in the construction sector in a just manner,” the ministry said in a statement.
