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Budget Crunch hits Construction of Road Projects

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Budget Crunch hits Construction of Road Projects
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May 18: The construction of various road projects has been hit by lack of budget in addition to the impact of COVID-19. The Department of Roads (DoR), which has spent 45 percent of budget in capital expenditure for various projects in the last ten months of the current fiscal year, is reeling under budget crunch for projects like the Postal Highway, Industrial Corridor and local bridges. 

Ramesh Kumar Singh, deputy spokesperson of the Department, informed that the low capital expenditure is due to the insufficient budget amid the COVID-19 pandemic.  He added that the development process of the Postal Highway and other six-lane industrial corridors have been hit by the lack of budget.

According to Singh, DoR is experiencing a budget crunch of Rs 11 billion for several road projects. The department itself will manage Rs 2.5 billion budget while the rest needs to be allocated by the Ministry of Finance. 

The department has said that the COVID-19 pandemic will also affect the annual target. If the current situation persists, the department has estimated only 65 percent of budget will be spent on capital expenditure.

The construction has been affected as workers in some projects have gone home while some others have been infected. About 35 workers involved in the construction of the Nagdhunga-Naubise tunnel have tested positive for the coronavirus which has affected the construction process.

The Department of Roads had received a budget of Rs 108 billion in the current fiscal year of which Rs 30.17 billion has been spent. The department has set an annual target of blacktopping 1,800 km roads but only 850 km of roads have been blacktopped so far.

 Of this, 550 km of roads have been newly-blacktop while the remaining 300 km have been upgraded and rehabilitated. A new road track of 284 km has been constructed. Until the second quarter, 504 km of gravel road has been completed out of the set target of 1000 km. Similarly, the DoR has completed the construction of 129 motorable bridges. It had set a target to complete the construction of 300 motorable bridges. Of the constructed bridges, 86 bridges are local bridges and 43 are strategically important ones. 

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