Banking and Financial Institutions (BFIs) have expressed their helplessness in helping the government enforce the National Building Code (NBC) in the country citing poorly functioning local bodies.
Nepal Rastra Bank (NRB) issued a directive a few days ago instructing the BFIs to make it mandatory for people seeking loans for house construction to obtain NBC compliance document from the local bodies.
Though the government adopted the NBC almost a decade ago, many of the buildings constructed since have been erected violating the measures in lack of sufficient technical staff at the local authorities and strict government oversight.
Speaking at an interaction program organized by Nepal Bankers´ Association in collaboration with UNDP/CDRMP and Center of Resilient Development (CORD) on Monday, Krishna Raj Lamichanne, president of the Association of Development Bank, said unless technicians at the local bodies do not honestly examine building maps and monitor whether the buildings are being constructed in compliance with the building code, making provisions for home loans stricter alone would not lead to more earthquake resilient buildings.
"In paper, the buildings are shown as complying with the NBC. But actual constructions rarely follow the code. If the government really wants banking institutions to play active role in the implementation of building code, it should enhance the institutional capacity of local bodies and make officials responsible," said he.
He said the government should also work to train and counsel masons and other stakeholders to encourage them to construct buildings in line with the building code.
Earlier, financial institutions, including insurance companies, required loan seekers to provide land ownership certificate, receipt from Department of Inland Revenue, proof of no objection from neighbors, and building maps approved by the municipality. But from now onward, BFIs will also demand NBC compliance certificate as part of the loan approval documents.
Similarly, Bijay Bahadur Shah of the Association of Insurance Companies said that the insurance companies are ready to follow the directives as it can help minimize both financial and human loss when disasters strike. "However, it alone cannot guarantee the full-fledged implementation of the building code. The government should carry out awareness campaigns across the country to change the attitude of people."
Likewise, Yuba Raj Khatiwada, governor of Nepal Rastriya Bank, also stressed on enhancing the institutional capacity of local bodies for the proper implementation of building code. "All stakeholders should work together to decrease both financial and human loss in the event of disasters."
He said in case of disaster, the BFIs are likely to incur huge economic loss as majority of people and companies are constructing buildings using lands as collateral to take out loans from the financial institutions. In order to minimize the loss, BFIs should play a vital role in implementing the code.
Meanwhile, Shanta Bahadur Shrestha, secretary of Ministry of Federal Affaris and Local Development, assured to build the capacity of local bodies to enforce the building code.
source: republica,21 july 2014
LINK
Nepal Rastra Bank (NRB) issued a directive a few days ago instructing the BFIs to make it mandatory for people seeking loans for house construction to obtain NBC compliance document from the local bodies.
Though the government adopted the NBC almost a decade ago, many of the buildings constructed since have been erected violating the measures in lack of sufficient technical staff at the local authorities and strict government oversight.
Speaking at an interaction program organized by Nepal Bankers´ Association in collaboration with UNDP/CDRMP and Center of Resilient Development (CORD) on Monday, Krishna Raj Lamichanne, president of the Association of Development Bank, said unless technicians at the local bodies do not honestly examine building maps and monitor whether the buildings are being constructed in compliance with the building code, making provisions for home loans stricter alone would not lead to more earthquake resilient buildings.
"In paper, the buildings are shown as complying with the NBC. But actual constructions rarely follow the code. If the government really wants banking institutions to play active role in the implementation of building code, it should enhance the institutional capacity of local bodies and make officials responsible," said he.
He said the government should also work to train and counsel masons and other stakeholders to encourage them to construct buildings in line with the building code.
Earlier, financial institutions, including insurance companies, required loan seekers to provide land ownership certificate, receipt from Department of Inland Revenue, proof of no objection from neighbors, and building maps approved by the municipality. But from now onward, BFIs will also demand NBC compliance certificate as part of the loan approval documents.
Similarly, Bijay Bahadur Shah of the Association of Insurance Companies said that the insurance companies are ready to follow the directives as it can help minimize both financial and human loss when disasters strike. "However, it alone cannot guarantee the full-fledged implementation of the building code. The government should carry out awareness campaigns across the country to change the attitude of people."
Likewise, Yuba Raj Khatiwada, governor of Nepal Rastriya Bank, also stressed on enhancing the institutional capacity of local bodies for the proper implementation of building code. "All stakeholders should work together to decrease both financial and human loss in the event of disasters."
He said in case of disaster, the BFIs are likely to incur huge economic loss as majority of people and companies are constructing buildings using lands as collateral to take out loans from the financial institutions. In order to minimize the loss, BFIs should play a vital role in implementing the code.
Meanwhile, Shanta Bahadur Shrestha, secretary of Ministry of Federal Affaris and Local Development, assured to build the capacity of local bodies to enforce the building code.
source: republica,21 july 2014
LINK
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