Manpower crunch hits reconstruction

Acute shortage of manpower accompanied by labour wage hike has made reconstruction even dearer

Sujata Awale

Kathmandu

Kathmandu valley is witnessing an acute shortage of labour in the construction sector following the recent earthquake and frequent aftershocks. The valley being one of the quake affected areas, labours have not returned to work after fleeing the capital. The majority of skilled and general workers in the valley are Indian nationals from Bihar, Kolkata and Orissa while Nepali workers are mostly from quake affected districts like Ramechap, Sindhupalchowk, Dhading and Nuwakot.

“Although this is the peak season for accomplishing road construction and other development works, we could not conduct it properly due to the lack of manpower,” said Sarad Kumar Gauchan, President of Federation of Contractors' Association of Nepal (FCAN). He further said, “Frightened by the devastating quake on frequent aftershocks, the Indian workers have not returned to work in the valley yet.” Citing that they are collecting data on the loss incurred by the sector, he said, “Within a couple of weeks we will publish the data on financial and work loss due to the earthquake.” Gauchan stated, "With the onset of monsoon, we will have to face a tough time completing development work intended for this fiscal-end." According to him, constructions at hundreds of sites in the valley have been affected by the short supply of labour.
While there is already an acute shortage of manpower in the construction sector, the hike in wages of labour has made reconstruction even dearer. “With high demand and low supply, the labour cost has also escalated by almost 100 per cent,” informed Anil Maharjan, Managing Director of Vision Housing and Real Estate Pvt Ltd. According to him, general workers are now demanding Rs 1,000 per day from Rs 600 and skilled workers charge Rs 1,500 per day from Rs 1,000. Informing that most of the Nepali workers are from earthquake affected districts, he said, "Nepali workers have not been able to resume the works due to their family responsibilities while Indians are out of contact."

While the valley needs a huge workforce for demolishing and re-construction, the existing labour crunch will invite more problems in days to come. “Due to lack of general workers, city dwellers are compelled to pay as much as available workers demand. The government should immediately sketch out a policy to retain workers who migrated to gulf and third world countries,” said Maharjan. With the increased labour cost, demolishing a four-storey building costs up to Rs 900,000; a two and a half storey building costs Rs 500,000 and demolishing a rooftop tank costs Rs 25,000. He opined that the government should crack down to resolve the unhealthy practice.

Another contractor Pushkar Balami said, “Although we have less work in recent times, but still we are running out of workers." Citing that the government has imposed ban on construction of new houses, he said, "We don't have much problem for the time being but if the situation continues we will have to face a tough time later.” According to him, majority of his workers hails from Sindhuli and Nuwakot.

“As the construction works have not started yet, it would be baseless to state there is a shortage of workforce,” said Narenath Luitel, President of Central Union of Painters, Plumbers, Electro and Construction Workers-Nepal (CUPPEC). He added, “Since the government has banned all new construction works for the time being, we are focused in relief and resettlement work in affected districts.” Blaming the government for not having proper plan for managing workers, Luitel said, “While there was not much work for workers, the government could have conducted trainings on masonry for seismic resistant technology, which would have been fruitful.”
"Once the government revokes construction, the demand for skilled, semi skilled and general workers will be huge and the government will not have any alternative than to import workers," he said. According to him, the valley used to have 250,000 workers before the earthquake including both Nepalis and Indians. The government has set Rs 360 as daily wage for general workers, Rs 500 for semi-skilled and Rs 1,000 for skilled manpower.

Published  on June 6, 2015, The Himalayan Times

Price of neglect

No planning and research was done to identify and classify areas based on geographical characteristics, land capacity and soil quality

Sujata Awale

Kathmandu

The temblor on April 25 that hit the country left a lot of destruction. It destroyed many residential buildings, apartments, government offices, industrial enterprises, hospitals, schools, et cetera in the country. Few areas in the valley like Gongabu, Nayabazaar, Kalanki, Ramkot, Sitapaila, Sankhu were severely damaged due to the earthquake and frequent aftershocks. Experts said that most of these structures were constructed defying National Building Code (NBC) and building by-laws in the valley which made them risky and the earthquake took its toll. Haphazard and unplanned urbanisation, non engineering structures defying building codes, inadequate research, lack of dispatching information and lack of adaptation of seismic resistance techniques are reasons why the valley faced much deadly destruction.

Weak enforcement

Research shows that the Kathmandu valley is a seismic prone zone. However, this fact has been taken too lightly by the government and concerned stakeholders. “Despite having building codes for all purposed building, the government as well as public displayed indifference and did not bother to strictly enforce and implement the laws,” said Senior Structural Engineer Dr Rajan Suwal. Citing that people constructed buildings as per their wish, he said, “People transferred building purposes — residential to corporate, hospitals, schools, added floors on weak foundation, built non-engineering structures made the city more vulnerable to disaster.”

 
Citing that there was no monitoring mechanism, Suwal said, “Structural analysis was not made compulsory and people were not aware about the importance of engineering structures.” He said that everyone should now learn from the past mistakes and now should not compromise on design, soil testing, foundation design, quality of construction materials and adopting seismic resistant techniques on structures.

Lack of planning and research

No planning and no research was done to identify and classify sectors based on geographical characteristics, land capacity and soil quality. Identifying and zoning of land for housing and urbanising purposes was also left out. “The government randomly declared village development committees as municipalities without any plans and policies being unaware about the possibility of haphazard urbanisation in those areas,” blamed Suwal.

In this regard, Engineering Geologist Dr Ranjan Kumar Dahal said, “Not only were existing policies not implemented, but the government also did not prioritise the possibility of a natural disasters and its effect on development.” He is of the opinion that the city should be planned keeping in mind natural disasters such as landslides, floods, fires, earthquakes, soil erosion, et cetera.

In the Land Use Policy 2012, there is a segregation of liquefaction zones, flood and landslide prone areas. Engineering students have conducted many studies on disaster prone areas. However, the information was ignored and not adopted in the policy level. “It is matter of shame that the government has not done any research on geology till date. National Building Codes that we follow are based on Indian codes, which are not suitable for our topography,” said Dahal. He further said that city planning needs detail research about ground acceleration design, soil thickness, soil testing, ground response and microscopic survey for earthquake resistant preparedness. He stressed on the need for having a Seismic Zonation Map based on the research and a NBC that supports land use policy. “The existing building code has to be revised and it should include town planning, hydropower project development, transportation and other manuals clearly and the government should enforce it strictly,” he added. He further said that the government should not delay the introduction of the Disaster Risk Management Act to incorporate all possible disasters.
No data, no studies

While the general public awaits answers as to why a few areas were fully damaged and some are not, experts said that they didn’t have a database to complete their study. Geotechnical Earthquake Engineer, Dr Monika Maharjan said, “The government has not disclosed data of all 21 seismic stations till date, without which we could not find out why few places such as Goganbu, Nayabazar, Balaju, Sankhu, Kausaltar were so severely affected.” She said that unless the database is released, it will be hurdle for the study of liquefaction, thrusts and faults zones.

Maharjan stated that without data the soil testing and soil condition study is of no use. “The government should first proiritise release of data from the database stations to study the conditions of the ground underneath. Only after that with the help of research the government should introduce a seismic hazard map,” she opined. Elaborating about the hazard map, she said, “Seismic hazard maps will provide insights about the status of soil and other disaster prone areas. And it will categorise areas according to class and the National Building Code should determine how to design structures in such areas.”

Citing that this is high time to introduce proper guidelines and codes, Maharjan said, “Previously people along with enforcement agencies were liberal and indifferent about probable destruction by natural disasters like an earthquake. Now, we can’t afford to make the same mistake.” According to her, structures can be made anywhere but the important factor is the proper study and zonation of where and how to make such structures.

She stressed on revising the building code and strict monitoring and enforcement of existing policies while planning for a new city. “If the government does not strictly enforce this, we can’t imagine what the situation will be in case of any disaster in the future.”
Waiting for approval

The Ministry of Land Reforms and Management introduced the Land Use Policy 2012 and established National Land Use Project (NLUP) in 2002. NLUP is entitled to make national plans for land use. However, NLUP stated that they cannot enforce the plan into practice. “Land use policy is just a textual guideline which is not tangible to implement. There should be a law and an Act to provide right, responsibility and restriction for using land and to implement land use projects,” said Nab Raj Subedi, Project Chief at NLUP. Citing that they have already sent the Land Reform Act for a sixth amendment last year, he said, “The act is still pending with Cabinet. As soon as it gets a green signal, we will implement our plans,” he added. According to him, they have a land use plan for 450 VDCs alongside the Mahendra Highway.

However, no significant work till date has been done for zoning and mapping for urbanisation. In the policy, there was a study carried out classifying land for agriculture, forest, pasture, settlement, urban development, industrial area, et cetera. After the recent earthquake, the project is also working on rapid hazard assessment for 14 affected districts. “We plan to complete this study by next week and will initiate having a hazard map of the country within the end of this Nepali year 2072,” he informed.

Subedi admitted that there have been loopholes.“Now people have realised the importance of building structures as per policies and laws. They have realised that even though the government turns to a blind eye, nature can penalise heavily,” he added. He said that the government should introduce national planning to focus on natural disasters and food security while coming up with new city planning. “Here the role of the government in implementing laws is important while the public should follow them,” he added. “Lack of integrated systems and coordination with different government bodies to dispatch the right information is another challenge that we face,” he said, adding that the issue needs national priority.

http://epaper.thehimalayantimes.com/epaperpdf/31052015/31052015-md-hr-17.pdf

Published on The Himalayan Times, Perspectives May 31, 2015

Demolishing woes

Government in dilemma over demolition

Partially or fully damaged houses in the valley pose threat to city dwellers as government has no clear policy

Sujata Awale

Kathmandu

The house of Krishna Lal Kisi, a resident of Bhaktapur- 2 has been severely damaged during the earthquake on April 25. As aftershocks are frequent and his house is vulnerable, he has no option left other than demolition. The tilted house with the uppermost part damaged poses a threat to neighbours. For the demolition purpose, Kisi has visited the ward office many times only to meet uncertainty about the process. Since the process by the government is cumbersome and time consuming (it might take up to a year), he decided to demolish it himself with the help of the local community.

“The role of the government is seen very passive to cope with disaster. At a time when the government should be active and decide clearly, here it lacks any policy and plans regarding demolition and relief,” said Kisi. He further said that the process itself to get permission to pull down the damaged property takes time, which has hassled homeowners.

Demolition of a house is not an easy task. It takes over a hundred thousand rupees to demolish and manage the debris. “We have already lost our property and pulling down the property added woe in our live,” he said in disappointment. Kisi, who is living in a tent currently, said that the government should introduce a clear policy and implement it as soon as possible to decrease the risk. According to him, there are more than 400 houses, which need to demolished in ward-2 alone. He stressed the need to pull down these damaged properties before the monsoon.

The story of Rakesh Lal Shrestha is no different. A resident of Punyabahal-23, Basantapur, Shrestha frequently visits the ward office to fill applications to demolish his three houses which were severely damaged during the earthquake. “As the government will take a long time to demolish our property which poses continuous threat to local surroundings including Vidhyodaya Primary School, we decided to demolish it ourselves,” he informed, adding that there is still confusion about whether their expenditure to demolish the house will be reimbursed or not. According to him, it takes minimum Rs 10,000 to Rs 2.5 million to pull down the property as per the structure. In KMC ward-23, 560 houses need to be pull down immediately.

Kisi and Shrestha are just a few cases. There are thousands of houses damaged that pose a constant threat to neighbours, passerbys and vehicle movement. Krishna Bahadur Maharjan, Secretary of Ward-11, Lalitpur said, “There are around 200 houses in this ward to be pulled down. However, as there is no clear policy on how the government will assist homeowners who demolish it on their own, many people are hesitant even though it poses a risk to others.”

The government circular cites that houseowners will get relief as per the policy even if they demolish the structure themselves. However, the decision regarding reimbursement after demolishing has not been made at the central level.

“It is matter of shame that the government is passive about this,” marked Bhaikaji Tiwari, Deputy Commissioner at Kathmandu Valley Development Authority. Stating that the government lacks manpower and technology to demolish structures, he said, “The government owns two 22 tonnes and 12 tonnes cranes. There is no policy and plan to use mild explosion to demolish structures inside the alleys and stories above five.” According to him, there are approximately 3,000 houses to be pulled down immediately in the valley. “If the government is indifferent, there is a high chance of fatal accidents in the near future,” he said.

Shivahari Sharma, Joint Secretary at the Ministry of Urban Development, said that obviously it is time consuming, while the government lacks resources, manpower and expertise. Citing that the government has no technology and equipment to demolish structures beyond five-storey buildings, Sharma said, “The ministry is asking for assistance from neighbouring countries.” He also stated that they are encouraging homeowners to demolish structures themselves as they can save and reuse construction materials. According to him, the government demolished 150 houses till date with assistance from the District Administration Office, Nepal Army, Nepal Police and Nepal Armed Force.

http://epaper.thehimalayantimes.com/epaperpdf/23052015/23052015-md-hr-14.pdf

Published on May 23, 2015 at THT Property Plus, The Himalayan Times on Satuday

How safe is your home?

Detail assessment of each building is compulsory to determine severity of damage to the structure


Sujata Awale

Kathmandu

As many as 72,217 houses in the Kathmandu valley alone were fully damaged by the devastating earthquake that hit Nepal on April 25 and its aftershocks. According to data maintained by Nepal Disaster Risk Reduction Portal, 65,694 houses were also partially damaged by the quake.

The frequent aftershocks have also made unseen cracks in the structure, which could be risky. To mark buildings safe, unsafe and usable after maintenance, the government has initiated the rapid visual damage team for assessment with green, red and yellow stickers. Buildings labelled with red stickers are marked unsafe while ones with green stickers are safe to reside in. Similarly, buildings leveled with yellow stickers need some retrofitting before being occupied again.

Engineers suggest not to hurry back to residing in houses that got a yellow sticker without having a detail assessment done. “There is a wrong concept going around that providing external support to walls makes the building habitable,” said Sanu Babu Dangol, Engineer at MinErgy. Citing that detailed assessment is compulsory to determine the severity of the damage, he said, “Only with the detail assessment, professionals can decide what techniques and methods have to be used for retrofitting. External support and filling cracks are just a temporary solution for preventing further possible damage to the building.”

According to Dangol, looking out for external cracks is not sufficient to term the building safe or unsafe. Structure should be inspected with engineering parametres. Citing that most buildings are found structurally weak, Dangol said, “Seventy per cent of buildings in core city areas like Patan have added floors to weak structures, which make them more vulnerable. In many cases there is no alternative than to dismante upper floors and retrofitting the building.”

Although retrofitting is not new to the world, experts state that it is very new technique to Nepal. “We don’t have sufficient manpower to conduct retrofitting techniques on a huge scale. There are many techniques to use such as grouting, injecting, banding, using carbon fiber et cetera which needs expertise,” he added, suggesting to keep inspecting cracks on regular basis as tremors have been frequent.

Damage varies according to the type of the house and the methods to inspect them also vary. “Houses made of bricks, stones with clay mortar not standing vertical, with horizontal, diagonal and vertical cracks means the house is damaged severely and needs retrofit," said Senior Structural Engineer Dr Rajan Suwal. He further said, “In case of RCC structure buildings, if pillars are damaged and have severe cracks on joints of beam and pillar then it is riskier to live in.” Citing that inspection of RCC frame structure should be done from basement (if there is) or ground floor, he said, “The base of the building should be safe to withstand the whole structure. If there are cracks and the structure of the building is not sound, it can collapse.”

According to Suwal, there is a need to inspect the foundation of the building, structures such as beams and columns, state of the building and wall partition to term the building safe or unsafe. "Retrofitting is viable only if it costs something between 10 to 30 per cent of constructing the new building," he said, adding that otherwise demolishing and constructing anew one would be a wise decision. He suggests using buildings carefully as aftershocks are still frequent and most buildings are not structurally sound, which adds vulnerability to city dwellers.

While engineers stated that retrofitting of buildings take time, Director of National Society for Earthquake Technology (NSET), Bijay Upadhyay said, “Resettlement and retrofitting should be done within mid-June if not it will be too late as the monsoon will start by then.” He said, “There should be proper assessment of the severity of the damage to the property at first. Then, data collection should be done whether to rebuild or retrofit the existing structure.”

Upadhyay further added that government assistance for retrofitting is crucial to encourage the general public. He opined that the government should not delay introducing the required policy and work plans for resettlement programmes and implement them as soon as possible. According to him, there are merely 100 trained experts in the country for retrofitting work and NSET plans to provide trainings on retrofitting.

Published on March 16, The Himalayan Times

Brick shortage could hit market hard

Price of bricks hiked by 15 per cent and could still soar higher


Sujata Awale

Kathmandu

The price of bricks has increased by 15 per cent since the beginning of March, as production could not meet soaring demand. As green clay worth Rs one billion was destroyed due to the heavy rainfall in mid-February, the supply of bricks was hit. production of bricks dipped by as much as 4

According to the Federation of Nepal Brick Industries (FNBI), the production of bricks is limited to 25 per cent of the target. With lower production and high demand, the market will soon face a shortage of bricks. The price of bricks have already been hiked up by 15 per cent — Rs two per piece — as compared to the price set before mid-February. Bricks were priced around Rs 10,000 to Rs 12,000 per thousand units early this fiscal. However, now it costs Rs 14,000 to Rs 15,000 per thousand units.

President of FNBI, Mahendra Bahadur Chitrakar, said, "With the positive vibe seen in construction and real estate, the demand for bricks has increased since the last two years. However, we are not able to meet this soaring demand due to unfavourable conditions." Citing that rain was the main hurdle for production, he said, "We have to work under the sky and if it rains, already made green clay gets destroyed which means 50 per cent loss."

Due to huge losses, a few brick kilns in the valley have already come to closure. Reportedly, 110 brick kilns were operational in the valley last year, however, of late only 100 factories are operating. There are altogether 800 brick kilns across the country. "The shortage of bricks has already hit the Western and Far-Western region of the country hard," he informed, adding that industrialists there could only produce 10 per cent of their target. He said that if the shortage of bricks continued, the only alternative would be importing from India.

The production for bricks is a seasonal business in the country that starts from December to June. Due to the rain, the production of bricks have decreased in the prime season. "There is no doubt that we had a hard time due to rain. And this will certainly hamper our total production this season," said Jacky Maharjan, Proprietor of Bhairab Itta Bhatta. Citing that they produced six million units last season, he said, "This year we can only produce four million units if there is no heavy rain." He also stated that as the production is low, price has been hiked. According to him, they have limited stocks and produce as per the placement of order.

Brick production is a manual job that depends upon climate and workforce. "The trend of migration for better opportunities has created a severe labour crunch in the business," said Bikash Maharjan, Proprietor of Shree Loknath Itta Udhyog. He said that there is a competition among producers to retain staffs. According to him, they used to have 900 staffs previously, but of late the number is limited to 600. "We witnessed 30 per cent increased demand as compared to last year but as there is an acute shortage of manpower, we could only produce one third of our target." The company has a production target of 30 million units this season but, it will hardly manage 10 million.

Maharjan stated that if it rains in days to come, there will be a shortage of bricks. According to him, they have only 1.5 million units in stock, which will be only enough for a few weeks. He further said that the price hike of coal is another factor that led to increase in the price of bricks. He said, "The coal mine at Assam has closed, and we have to import from another part of India paying 50 per cent more." According to him, they used to pay Rs 17,000 per tonne of coal from Assam while they pay Rs 25,000 per tonne these days.

0 per cent due to the rainfall. Untimely rainfall, labour crisis and lack of raw materials are major hassles to the brick industry. Although, the demand for bricks has increased by 15 per cent as compared to the last year, producers could not cash in on the potential.

Published on THT Property Plus/ March 28, 2015

Mismanaged and total mess

Systems and infrastructure at TIA outdated and insufficient


Sujata Awale

Kathmandu

The sole international airport of the country — Tribhuwan International Airport (TIA), has been in the news for all the wrong reasons in the last few weeks. The crash landing of a Turkish Airlines A330 aircraft that blocked the runway forced the closure of the airport for four days. Kathmandu was cut off from the rest of the world as airlines could not land in Kathmandu and were diverted. As many as 165 scheduled international flights were cancelled due to the incident and some 50,400 inbound and outbound passengers were stranded in different countries and faced a hard time. The incident caused severe financial losses to airlines in terms of managing passengers' accommodation in hotels, fooding and compensation for baggage missing in the mad rush after the airport was opened. Airlines operated 197 extra flights after the incident from March 7 till the midnight of March 11.

On March 13, merely a week since the Turkish Airlines incident, TIA faced runway blackout for two and a half hours leading to diversions of seven incoming flights and some delayed takeoffs.

Table of losses

Stakeholders stated that as Civil Aviation Authority of Nepal (CAAN) and the respective ministry could not crack down on time the situation went from bad to worse. Lack of preparedness in the face of emergency and poor infrastructure, equipment and expertise aggravated the situation. The exact data on the total loss incurred during the period is yet to be disclosed by respective airlines.

"Lack of the government's will, accountability and determination to play a constructive and decisive role during the crisis made the situation worse," said Bhola Bickram Thapa, Vice Chairman of Board of Airlines who is also the President of President Group of Companies. Citing that it is sheer negligence on the part of CAAN, he said, "It is the responsibility of CAAN to respond to emergencies promptly and push the government to solve the issue. But, both CAAN and the ministry stayed quiet and irresponsible." He further said that the huge lose to airline companies and added woes to passengers is because of CAAN's failure to act, therefore, it must compensate the airlines. "We have already written to all airline companies to prepare a report on financial losses they faced. As soon as we get it, we will claim compensation," he asserted.

Airline companies had a tough time for eight days — four days during and four days after airport closure. Many passengers reported baggage missing and untimely delivery. The country itself got negative publicity. Because of cancellation of flights for four days, most hotel bookings were cancelled. Inbound travel agents lost incoming clients, treks, travel agents, porters, domestic airlines all lost out on revenue worth millions of dollars.

Economic Analyst, Sujeev Shakya, said that authentic data for the total loss has not yet been tabulated. However, he said, "Eighty thousand people are directly and indirectly affected by the incident. The total loss would be around Rs 250 million." According to him, there is still confusion over who will bear the total loss in the aviation sector. "As many airline companies are waiting for their insurance to cover the loss, they are not disclosing the amount," he said. Extra fuel charge, TIA cost, fooding and accommodation of passengers are the main expenditure heads for airline companies. "It is not only the financial losses but the tourism of the country will also suffer," he added.

No planning, no vision

The government's unpreparedness was highlighted by the fact that Nepal has no alternative runway, alternative international airport or jet removal kit to clear the only runway. Stakeholders stated that the four days closure not only left thousands of passengers stranded but it also raised serious questions about safety measures and the professional approach that international airports are expected to have.

“The incident showed the world how the government is operating TIA,” said DB Limbu, President of Nepal Association of Tours and Travel Agents. Citing that the infrastructure of the TIA expired 10 years ago, Limbu said, "TIA has a single runway and Nepal has no other international airport. It is high time the government planned for alternative international airports in the country.”

According to him, TIA collects about Rs five billion revenue every year, which is more than enough to renovate and maintain physical infrastructure. However, he said the government lacks will power and proper plans and vision for management of TIA. Stressing on the need to speed up the construction of the proposed second international airport at Bhairahawa, he said, "The government has to take the lead and implement the plan. Otherwise, the country will be cut off from the world in case of any natural disaster in the city."

Nepal has adopted its ‘Vision 2020’ plan with a target to attract two million tourists. “The negative message that the international market got will certainly hamper tourism,” he said, adding that the government should plan properly to invite tourists.

On this, Director General Ratish Chandralal Suman said that CAAN has learnt a lesson from the incident and is working on both preventive and proactive measures. He said, “As a preventive measure, we are planning to have an alternative international airport at Bhairahawa and also discussing about owning removal kit in case of any unforeseen incident.”

Where are the facilities?

TIA charges Rs 1,000 per passenger as an Airport Development Tax (ADT). The collected fund is meant for the enhancement of infrastructure and facilities at the airport for passengers. According to CAAN, it collects Rs 1.5 billion ADF per year in an average.

It has been a year since CAAN is collecting ADT, however, the utilisation of funds for the right purpose is still a far cry. While stakeholders blamed TIA and CAAN for not being accountable, the only answer they could come up for their own state of inactivity is that their work is in progress.

"We have sketched an airport rehabilitation programme of Rs three billion to enhance passenger facilities such as elevators, toilets, security technology, check-in counters among others," said Suman. He further said that they have already started asking for tenders to bid for the project. "We will complete the Rs one billion project in this fiscal," he assured.

Limited facility, excessive load

Officials at TIA admitted that the infrastructure at the airport is not sufficient to cater to the present air traffic and flow of passengers. According to TIA management, the passenger handling capacity of the airport terminals are 1,325 per hour while the flow of passengers surge up to almost 3,500 per hour. "The system and whole infrastructure of TIA is outdated and insufficient to cater to our daily passengers," admitted Teknath Situola, Chief of Terminal Management Division at TIA — Civil Aviation Office. In TIA, there are 18 washrooms, four x-ray machines, four boarding gates, four ramp bus, limited wheelchair facility and three-baggage belt. Of which, one baggage belt, a ramp bus and two x-ray machines hardly operate properly.

While questioning about the state of existing equipment and facilities, he said, "We do not have a system to acknowledge all details of the property and as soon as we are informed about the problem, we will solve it.” He also stated that as there are 36 different government bodies inside TIA, they face problems in coordination. Citing that available space is limited to add on adequate facilities, he said, “We are planning to add a floor for immigration to ease the flow.”

President of Airline Operator's Committee — Nepal, Bharat Kumar Shrestha, said that half of the problem of terminals would solve if the TIA officials operate existing resources fully. Shrestha said, “We have asked TIA officials many times to operate four x-ray machines full-fledgedly but we are yet to see it happen. Likewise, baggage belts and a ramp bus keeps breaking down and the management is least bothered about the situation.” He further said that due to the mismanagement of TIA, passengers have to stand in long queues delaying flight schedules.

BOX:

Upgrading Bhairawaha Airport

KATHMANDU: The construction of Gautam Buddha Airport that is to be upgraded as a regional international airport started on January 15, 2015. The regional airport upgrade work is expected to be completed by December 2017. In October last year, the CAAN signed an agreement to upgrade the existing airport with Northwest Civil Aviation Airport Construction Group of China, the lowest bidder for the project. It had quoted Rs 5.50 billion for the project, which is estimated to cost Rs 6.22 billion as per the government estimation.

The project is assisted by Asian Development Bank (ADB) and supported by South Asia Tourism Infrastructure Development Project. After upgrading, the airport with a 3,000-metre runway it will serve as an alternative to the nation’s only international airport. According to CAAN, the total estimated cost of the project is USD 97.21 million, ADB will provide USD 58.50 million (USD 42.75 in loans and USD 15.75 million in grants), while OPEC Fund will provide USD 15 million loan.— HNS






Published on March 22, 2015 on THT Perspectives

Steel rods face weak demand

Despite it being the peak season for product sales industry is suffering


Sujata Awale
Kathmandu

As the government has not been able to carry out development projects smoothly, it has directly affected demand for construction material like steel rods. Despite it being the peak season for construction product sales, the steel rolling mill industry is suffering. The steel rod industry has not only witnessed a halt in its year on year market growth of around 15 per cent til last year but it has also experienced a slump in demand by over five per cent. The market, which consumed 315,000 tonnes of steel rods last year has now been confined to approximately 300,000 tonnes of steel rods. However, there is adequate stock in the market and the price of steel rods remains the same at Rs 84 to Rs 86 per kg as in the previous year.

According to Nepal Steel Rolling Mills Association (NSRMA), the total market for steel rods is 500,000 tonnes per year. Reportedly, there are 30 registered rolling mills, out of which only 17 factories are in operation. Industrialists stated that political instability, lower development activities and non opening of new projects are the main reason for low demand of construction material. Of late, Nepal is heading towards self-dependence in steel rods, but is still dependent on India for raw materials.

“There is no demand for construction material owing to slow paced development activities in the country,” said Dhruba Kumar Shrestha, President of NSRMA, adding that expenditure from the development budget has been nominal till the end of the third quarter of this fiscal year. He said, “The government could not introduce new development projects like hydropower, infrastructure development and housings, which directly hampered our business.”

Citing that there was high demand but low production last year, he said, “Although production is smooth this year, demand is low." Complaining that load shedding is the major hindrance for the sector, he said, “Due to severe power cuts, we are confined to operate at only 50 per cent of the installed capacity.”

“Usually, the period between mid-January to mid-March is the peak season for steel rods and the price of the products also soars during this period," Biswo Pudassaini, Sales and Marketing Manager at Panchakanya Steels, adding that however, the price is the same as demand is low. “Slow-paced development activities are the main cause for lowering demand," he said, adding that the sluggish real estate sector is also a cause for low demand.

There are two types of steel rods being manufactured for construction. Steel rods made up of prime billets is superior and are more expensive while those made up of ingots are of low quality and inexpensive. Panchakanya, Himal, Sakha and Hama Steels are some companies that produce prime billet rods. "There is a healthy competition among manufacturers using prime billets while there is unhealthy competition among manufacturers using secondary billets and ingots," said Pudassaini. According to him, Panchakanya enjoys 20 per cent market share in the rolling mills industry.

"We have witnessed 20 per cent growth in sales this year," said Raju Kumar Thapa, Deputy General Manager at Hama Steels. He informed that Hama Steels have resumed operations eight months ago after upgrading with new technology and 600 tonnes installed capacity. "We are using the latest technology and are the first one to use primary root base billets to produce quality steel rods," he said. "As of now, there is no sign of new projects opening. However, we are expecting some next month," Thapa opined. According to him, they enjoy 10 per cent market share.

"Customers here are still unaware about the quality of steel rods. They look for affordability rather than quality," said Thapa, adding that they plan to have campaigns to make people aware of the significance of quality products. According to him, the unique selling proposition of their products is ductility, strength and uniformity of consistency.